HomeMy WebLinkAboutRDA Packet 2001/04/24
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CllY OF
CHULA VISTA
TUESDAY, APRIL 24, 2001 COUNCIL CHAMBERS
6:00 P.M. PUBLIC SERVICES BUILDING
(immediately following the City Council meeting)
ADJOURNED JOINT MEETING OF THE
REDEVELOPMENT AGENCY I CITY COUNCIL
OF THE CITY OF CHULA VISTA
CALL TO ORDER
ROLL CALL
Agency/Council Members Davis, Padilla, Rindone, Salas; Chair/Mayor Horton
CONSENT CALENDAR
The staff recommendations regarding the foiiowing item Is) listed under the Consent Calendar wiii be enacted
by the Agency/Council by one motion without discussion unless an Agency/Councii member, a member of the
public or City staff requests that the item be puiied for discussion. If you wish to speak on one of these items,
piease fiii out a "Request to Speak Form" available in the iobby and submit it to the Secretary of the
Redevelopment Agency or the City Cierk prior to the meeting. Items puiied from the Consent Calendar wiii be
discussed after Action items. Items puiied by the public wiii be the first items of business.
1. APPROVAL OF MINUTES - Staff recommends the Redevelopment Agency/
City Council approve the minutes of the regular meeting of the
Redevelopment Agency and adjourned meeting of the City Council for April
3, 2001; and adjourned meeting of the Redevelopment Agency and City
Council for April 10, 2001.
2. AGENCY RESOLUTION 1719 APPROVING A CHANGE ORDER TO AN
AGREEMENT WITH URS CORPORATION FOR THE CLEAN UP OF A
CONTAMINATED HOLDING SITE LOCATED AT 4075 MAIN STREET WITHIN
THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA, AND
APPROPRIATING $208,336 IN UNANTICIPATED RECEIPTS FROM THE
SHINOHARA ESTATE AND $4,804 FROM THE UNAPPROPRIATED FUND
BALANCE OF THE OTAY VALLEY ROAD PROJECT AREA TO FUND THE
PROJECT-The Agency is interested in developing a 1.6 acre site in the Otay
Valley Road Redevelopment Area as an expansion to the Auto Park to
generate additional jobs and revenue in an area currently blighted. The site
is unsuitable for development due to its use as a stockpile for contaminated
burn-ash waste. Owned by the Shinohara Estate, the site was estimated to
contain 34,000 cubic yards of contaminated material. During the clean up
operation, substantially more sub-surface contamination was discovered
than had been anticipated by previous fieldwork. This resolution would
appropriate funds, at a per unit rate, to pay for the clean up of the additional
burn ash discovered. [Community Development Director]
CONTINUED FROM THE MEETING OF 4/10/01 4/5ths Vote Required
STAFF RECOMMENDATION: Redevelopment Agency adopt the resolution.
3. AGENCY RESOLUTION 1721 APPROVING WAIVER OF THE TOWN CENTRE
FINE ARTS FEE FOR THE GATEWAY OFFICE BUILDING PROJECT-On
6/6/01, the Agency granted a Disposition and Development Agreement
(DDA) for development of the Gateway Chula Vista project. A provision of
the DDA requires that the Agency make a determination that the developer
has satisfied the conditions precedent to granting of a waiver of the Fine
Arts fee. [Community Development Director]
STAFF RECOMMENDATION: Redevelopment Agency adopt the resolution.
ORAL COMMUNICATIONS
This is an opportunity for the general pubiic to address the Redeveiopment Agency on any subject matter
within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generaiiy prohibits
the Redeveiopment Agency from taking action on any issues not included on the posted agenda.) If you wish
to address the Agency on such a subject, please compiete the "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Cierk prior to
the meeting. Those who wish to speak, piease give your name and address for record purposes and foiiow up
action.
PUBLIC HEARING
The foiiowing item(s) have been advertised and/or posted as public hearings as required by law. If you wish to
speak to any item, please fiii out the "Request to Speak Form" available in the lobby and submit it to the
Redevelopment Agency or the City Clerk prior to the meeting.
4. a. PUBLIC HEARING FOR SPECIAL USE PERMIT TC1-01-01 - 208 THIRD
AVENUE OFFICE TO RESIDENTIAL CONVERSION-The applicant has
requested a Special Use Permit to allow the conversion of office space at
208 Third Avenue. The project is located within the Town Centre I
Redevelopment Project Area and would convert two office units from office
use to residential. The permit request requires public hearings before the
Town Centre Project Area Committee and the Redevelopment Agency. On
3/14/01, the Town Centre Project Area Committee recommended approval.
[Community Development Director]
b. AGENCY RESOLUTION 1722 GRANTING SPECIAL LAND USE PERMIT SUP
#TC1-02-01 FOR AN OFFICE TO RESIDENTIAL CONVERSION AT 208
THIRD AVENUE
STAFF RECOMMENDATION: Redevelopment Agency adopt the resolution.
Redevelopment Agency, Aprii 24, 2001 Page 2
ACTION ITEMS
The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by
the Agency, staff, or members of the general public. The items wiii be considered individuaiiy by the Agency
and staff recommendation may in certain cases be presented in the alternative. Those who wish to speak,
please fiii out a Request to Speak form available in the lobby and submit it to the Secretary to the
Redevelopment Agency or City Clerk prior to the meeting.
5. AGENCY RESOLUTION 1723 APPROVING THE COMMUNITY HOUSING
IMPROVEMENT PROGRAM (CHIP) LOAN INTERNAL PROGRAM MANUAL-On
211/77, Council approved implementation of a Community Housing
Improvement Program (CHIP) to provide low interest loans and grants for
low income residents to rehabilitate their homes. The CHIP Loan program
was informally discontinued in 1997 due to staffing constraints and overall
workload issues; however, the CHIP grant program continued to provide
assistance to both single family homes and mobilehomes. An additional
staff person has been hired to administer the CHIP program and update the
loan program. The CHIP Loan Internal Program Manual will provide written
guidance for staff and the CHIP Committee to follow in qualifying applicants
and enforcing standards for the program. [Community Development
Director]
STAFF RECOMMENDATION: Redevelopment Agency adopt the resolution.
OTHER BUSINESS
6. DIRECTOR'S REPORT(S)
7. CHAIR/MAYOR REPORTlS)
8. AGENCY/COUNCIL COMMENTS
ADJOURNMENT
The meeting will adjourn to the regularly scheduled meeting of the Redevelopment
Agency on May 1, 2001 at 4:00 p.m., immediately following the City Council
meeting in the City Council Chambers.
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who
require special accommodates to access, attend, and/or participate in a City meeting, activity, or service
request such accommodation at least 48 hours in advance for meetings and five days for scheduled services
and activities. Please contact the Secretary to the Redevelopment Agency for specific information at 1619)
691-5047 or Telecommunications Devices for the Deaf (TOO) at 1619) 585-5647. California Relay Service is
also available for the hearing impaired.
Redevelopment Agency, April 24, 2001 Page 3
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND A
REGULAR MEETING OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
April 3, 2001 4:00 p.m.
An Adjourned Regular Meeting of the City Council and a Regular Meeting of the
Redevelopment Agency of the City of Chula Vista were called to order at 4:50 p.m. in the
Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista,
California.
ROLL CALL:
PRESENT: Agency/Councilmembers: Davis, Padilla, Rindone, Salas and
ChairlMayor Horton
ABSENT: Agency/Councihnembers: None
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City
Attorney Kaheny, City Clerk Bigelow
ORAL COMMUNICATIONS
There were none.
OTHER BUSINESS
1. EXECUTIVE DIRECTOR'S REPORTS
There were none.
2. CHAIRIMA YOR REPORTS
There were none.
3. AGENCY/COUNCIL COMMENTS
There were none.
CLOSED SESSION
4. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government
Code Section 54956.8
Property: Assessor Parcel Nos. 568-270-03; 568-270-11
(approximately 2.85 acres located at the southeast corner of
Fourth Avenue and F Street)
Negotiating Parties: City Council/Redevelopment Agency (Sid Morris / Chris
Salomone) and Chula Vista Center (Robert Caplan)
Under Negotiations: Price and terms for acquisition
ACTION: Instructions were given to Counsel.
I-I
ADJOURNMENT
At 7:45 p.m., Chair Horton adjourned the meeting to the Adjourned Regular Meeting of the
Redevelopment Agency to be held on April 10, 2001 at 6:00 p.m., immediately following the
City Council meeting, in the City Council Chambers.
Respectfully submitted,
~ A..L~(~
Susan Bigelow, CMC/AAE, City Clerk
Page 2 Council/RDA Mioutes /- d-.. 04/03/2001
MINUTES OF ADJOURNED REGULAR MEETINGS OF THE
CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
April 10,2001 6:00 p.m.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of
Chula Vista were called to order at 6:44 p.m. in the Council Chambers, located in the Public
Services Building, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL
PRESENT: Agency/Councilmembers Davis, Rindone, and ChairlMayor Horton
ABSENT: Agency /Councilmembers: Padilla, Salas
ALSO PRESENT: Executive Director/City Manager Rowlands, Senior Assistant City
Attorney Moore, City Clerk Bigelow
CONSENT CALENDAR
ChairlMayor Horton noted that Item #2 would be removed from the Consent Calendar and
continued to April 24, 2001, since the item required a four-fifths vote and only three members
were present.
1. APPROVAL OF MINUTES of the Regular Meetings of the Redevelopment Agency and
the Adjourned Regular Meetings ofthe City Council held March 20 and March 27, 2001.
Staff recommendation: The Agency/Council approve the minutes.
2. AGENCY RESOLUTION APPROVING A CHANGE ORDER TO AN AGREEMENT
WITH URS CORPORATION FOR THE CLEAN UP OF A CONTAMINATED
HOLDING SITE LOCATED AT 4075 MAIN STREET WITHIN THE OTAYVALLEY
ROAD REDEVELOPMENT PROJECT AREA, AND APPROPRIATING $208,336 IN
UNANTICIPATED RECEIPTS FROM THE SHINOHARA ESTATE AND $4,804
FROM THE UNAPPROPRIATED FUND BALANCE OF THE OTAY VALLEY
ROAD PROJECT AREA TO FUND THE PROJECT-
The Agency is interested in developing a 1.6 acre site in the Otay Valley Road
Redevelopment Area as an expansion to the Auto Park to generate additional jobs and
revenue in an area currently blighted. The site is unsuitable for development due to its
use as a stockpile for contaminated burn-ash waste. Owned by the Shinohara Estate, the
site was estimated to contain 34,000 cubic yards of contaminated material. During the
clean up operation, substantially more sub-surface contamination was discovered than
had been anticipated by previous fieldwork. This resolution would appropriate funds, at
a per unit rate, to pay for the clean up of the additional burn ash discovered. (Community
Development Director) 4/5THS VOTE REQUIRED
Staff recommendation: The item be continued to April 24, 2001.
ACTION: Noting that Consent Item #2 was continued to April 24, 2001, ChairlMayor
Horton moved to approve Consent Calendar Item #1, approval of minutes of
meetings held March 20 and March 27,2001. The motion carried 3-0.
/-3
ORAL COMMUNICATIONS
There were none.
PUBLIC HEARING
3. PUBLIC HEARING TO CONSIDER THE SALE OF SPACE 45 AT ORANGE TREE
MOBILEHOME PARK
In November 1987, Orange Tree Mobilehome Park converted to resident ownership. The
Agency assisted the residents in purchasing their park. At that time, 29 residents did not
wish to purchase their space, and the Agency agreed to purchase these spaces. The
residents who did not purchase their space remained as renters. The Agency's desire is to
sell these spaces an new homebuyers move into the park. The Agency currently owns 9
spaces, having sold 20 spaces. The Agency has received an offer to purchase Space 45
from the current occupant. (Community Development Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
ChairlMayor Horton opened the public hearing. With no members of the public wishing to
speak, she then closed the hearing.
ACTION: ChairlMayor Horton offered Agency Resolution No. 1720, heading read, text
waived:
AGENCY RESOLUTION NO. 1720, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO
EXECUTE A PURCHASE CONTRACT AND RELATED DOCUMENTS FOR
SPACE 45 AT ORANGE TREE MOBILEHOME PARK
The motion carried 3-0.
OTHER BUSINESS
4. EXECUTIVE DIRECTOR'S REPORTS
There were none.
5. CHAIRIMA YOR REPORTS
There were none.
6. AGENCY/COUNCIL COMMENTS
There were none.
Page 2 Council/RDA Mioutes /-<-1 04/10/2001
ADJOURNMENT
At 6:51 p.m., ChairlMayor Horton adjourned the meeting to the Adjourned Regular Meeting of
the Redevelopment Agency to be held April 24, 2001 at 6:00 p.m., immediately following the
City Council meeting.
Respectfully submitted
~tlL~ó'~
Susan Bigelow, CMC, AAE, City Clerk
Page 3 Council/RDA Mioutes /-5"" 04/10/2001
REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM NO.: ..3
MEETING DATE: 4/24/01
ITEM TITLE: RESOLUTION APPROVING WAIVER OF THE TOWN CENTRE FINE
ARTS FEE
SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR L\\~~
REVIEWED BY: EXECUTIVE DIRECTOR Á/
4/5THS VOTE: YES D NO ŒJ
BACKGROUND
The Agency Board opproved 0 Disposition and Deyelopment Agreement (DDA) for development of
1he Gateway Chula Vista project on June 6, 2000. A provision of the DDA requires thaf the Agency
make a determination that the developer has safisfied the conditions precedent to granting of a
waiver of the Fine Arts fee, as specified in Section 209 of the Agreement. The development project
hos been fully designed and 011 discretionory entitlements and design review hove been completed
and approved. The developer hos purchased public art for Phase I of the project and has carefully
designed fhe landscape and public spoces for the project in such a way that staff feels confident in
recommending approval of fhe Fine Arts Fee Waiver. Additional public art will be assembled for
Phases II and III as fhose phases move forward to final design and building permit over the next
severol yeors.
RECOMMENDATION
Approve the Agency resolution granting a woiver of the Town Centre Fine Arts Fee.
BOARDS/COMMISSIONS RECOMMENDATION
The Town Centre Project Area Committee voted unanimously to recommend approval of the Fine
Arts Fee Waiver os port of it's Recommending Approvol of the Disposition and Development
Agreement on February 8, 2000.
DISCUSSION
The Town Centre Fine Arts Fee wos implemented to help ensure that new projects within the Town
Centre I Redevelopment Project Area provide odequate public ort ond/or design. During
negotiations wifh the Gatewoy Chulo Visto project development team, 0 woiver of the Fine Arts
fee was requested as part of the overoll project negotiations. In order to help ensure that the
ultimote project design was of a high enough level of quality to warrant the Fine Arts fee woiver,
the project's Disposition ond Development Agreement (DDA) wos crofted to require thot the
....3 - (
PAGE 2, ITEM NO.:
MEETING DATE: 04/18/00
Agency revisit the fee woiver issue and that the Deyeloper sotisfy four conditions precedent to the
waiver. The following four conditions must be met:
1. Design drawings need to be submitted in sufficient detoil for the Agency to evoluate
whether the public art features are of sufficient quality and scope for a woiver to be
granted;
2. The Fine Arts Fee program ond policy have been satisfied by the Developer;
3. The Deyeloper isn't in default of the Agreement; and
4. The Developer's insurance is up to date and in place.
Staff is satisfied thot the developer has met all four conditions precedent to the granting of the
Fine Arts Fee Waiver.
Attoched for reference are renderings of the public ort and design componenfs upon which staff
has made its recommendation for the Fine Arts Fee Waiver. In addition, staff hos onalyzed
compliance with the other Conditions Precedent to the woiver os noted obove ond finds fhat the
Developer is in complionce.
FISCAL IMPACT
None. The Fine Arts Fee Woiver would have required that one percent of the development cosf
of the project be included in publicly occessible art and design feafures or in cash payment to the
City. For Phose I, with a development cost of opproximotely $20 million, the developer would
have been required to either pay a fee of opproximately $200,000 or provide art features of
equivalent value. The developer has purchased sculpture valued in excess of $200,000 that will
be prominently displayed in Phose I. In oddition, staff has determined that the quolity of
orchitectural ond londscape design is of 0 high stondord thot will odhere to the policy and intent
of the Fine Arts Fee program.
AnACHMENTS
Goteway Project Public Art and Design
J,\COMMOEV\Estes\TCI\Golewoy Project\fineortswaiveroction.doc
3-d-.
RESOLUTION NO.
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA APPROVING WAIVER OF THE TOWN CENTRE
FINE ARTS FEE FOR THE GATEWAY OFFICE BUILDING
PROJECT
WHEREAS, the Redevelopment Agency entered into a Disposition and Development
Agreement (DDA) with Gateway Chula Vista, LLC for development of the Gateway Chula Vista
Project at the northwest corner of "H" Street and Third Avenue in the Town Centre I Redevelopment
Project Area: and
WHEREAS, said DDA as set forth in Section 209 contemplated and made provision for the
Redevelopment Agency to provide a waiver of the Town Centre Fine Arts Fee if the final design of
the Project met the goals and intent of the Fine Arts Fee Program and certain other conditions
precedent to granting of the waiver; and
WHEREAS. the final design of the project incorporates significant public art and architectural
and landscape design of a high quality which satisfies the provisions of the DDA and meets the
Conditions Precedent as set forth in Section 209; and
WHEREAS, the development has received all discretionary approvals from the City and
Agency, including extensive design review and approvals and is ready for issuance of it's first
ministerial building permit approvals;
NOW, THEREFORE. BE IT RESOLVED, based upon the facts and determinations set forth
above, the Redevelopment Agency of the City of Chula Vista does hereby Grant a Waiver of the
Town Centre Fine Arts Fee to the Gateway office project building.
PRESENTED BY APPROVED AS TO FORM BY
Chris Salomone
Director of Community Development
J: \COMM DEVlEsteslTC I\Gateway P roject\RESOF ineArtsF ee. d oc
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REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM NO.: q
MEETING DATE: 4/24/01
ITEM TITLE: PUBLIC HEARING FOR SPECIAL USE PERMIT TC1-02-01 - 208
THIRD AVENUE OFFICE TO RESIDENTIAL CONVERSION
RESOLUTION GRANTING SPECIAL LAND USE PERMIT SUP #TCI-02-
01 FOR AN OFFICE TO RESIDENTIAL CONVERSION AT 208 THIRD
AVENUE
SUBMlnED BY: COMMUNITY DEVELOPMENT DIRECTOR ~cf'V\ ~;'>
/"',
REVIEWED BY: EXECUTIVE DIRECTOR 1.#
4/ST"S VOTE: YES DNO0
BACKGROUND
The opplicant has requested a Special Use Permit fo allow fhe conversion of office space at 208
Third Avenue. The project is locoted within the Town Centre I Redevelopment Project Area and
would convert two office units from office use fo residentiol (one Sfudio unit ond one one-bedroom
unit.) The permif request requires public hearings before the Town Cenlre Project Area Committee
ond the Redevelopment Agency. The project is a Closs 3 exemption from further environmental
review pursuont to the Colifornio Enyironmental Quolity Act, Section 15303 of the Colifornio Code
of Regulations (Conversion of Small Sfructures.)
RECOMMENDATION
1. Hold a Public Hearing ond receive Public Testimony; ond
2. Approve the Applicont's Requesf based on Listed Findings ond Subject fo the Noted
Conditions.
BOARDS/COMMISSIONS RECOMMENDATION
The Town Centre Project Areo Committee recommended approvol (4 - 0 - 1) on March 14,
2001.
DISCUSSION
The opplicont is requesting approval of a Speciol Use Permit fo allow the conversion of existing
office spoce into a Studio and 0 One-Bedroom Apartment in 0 building located ot 208 Third
Avenue. The subject properly is located on the west side of Third Avenue ond is fhe second
parcel south of "E" Street. The properly is developed with 0 two-story mixed-use commerciol-
residentiol building.
4- r
PAGE 2, ITEM NO.: 4-
MEETING DATE: 04/24/01
The proposed use is consistent with the policies of the General Plan. The subject property is
located within the boundaries of 1he Urban Core Neighborhood of the Cenfral Chula Vista Area
Pion (Chapfer 10 of the General Plan.) The proposed use would be consisfenf with Obiective 1 of
the Area Pion, which is to "mointoin ond support the vitality of commercial establishments olong
Third Avenue." The proposed use would support this objective by infroducing 0 use to fhe urban
core thot would be compatible with fhe exisfing and desired retail and service commercial uses
along Third Avenue, as the porticulor conversion site is located not only at fhe bock of the lof
adjacenf fo the alley, buf is also immediotely adjacent to the au10mofive service facility on the
corner of Third Avenue ond "E" Streef, a location ill suited for the continued offraction of exisfing
office or refail uses. In oddition, urban infill housing has increasingly been recognized as a
significonf contributor to sfability and revitolization in older "Main Sfreef" business dis1ricts like
Third Avenue. Agency sfoff slrongly support the provision of addifionol infill housing in locations
near to Third Avenue.
The proposed use is consistenf wifh 1he Town Centre I Redevelopment Plan ond the vision for fhe
Town Centre I Redevelopmenf Proiect Areo. Mixed Use residential projects ore ollowed vio a
Special Use Permit. The proposed use would result in a parking demand of 3 parking stalls,
while the existing office use could generate demand for as many as 10 parking stalls. The
proposed use would therefore decrease the burden on limited on-sfreef and off-sife parking
facilities.
FINDINGS:
In order to approve the requested Speciol Use Permit, the Agency must make the following
findings:
J. That the proposed use at the particular location is necessary or desirable to
provide a service or facility which contributes to the general well being of the
neighborhood or the community.
The proposed residential conversion would be consistent with adopted policies in fhe General
Plan and the Redevelopment Pion for fhe orea. The use would be compatible with the existing
and desired refoil ond service commercial uses along Third Avenue as identified in the Central
Chulo Vista Area Pion of the General Plan and fhe Town Centre I Redevelopmenf Plan, as 1he
particular location is nof conducive to these uses, but the use as residential will provide the
opportunity in 1he immediafe area for the financial support the preferred uses require.
2. That such use will, under the circumstances of the particular case, not be
detrimental to the health, safety or general welfare of persons residing in the
vicinity, or in;urious to property or improvements in the vicinity.
The residential conversion would not be detrimental to permiffed land uses in the vicinity. The
proposed use would introduce a residen1ial use to the Town Centre thot would be compatible
with fhe lond use categories identified in fhe General Plan ond Redevelopment Pion. In addition,
1he reduced parking needs generafed by the use would ossist businesses ond retoil customers by
decreasing the demond for scarse on-sfreet parking ond off-site parking facilities.
4- d..
PAGE 3, ITEM NO.: 4-
MEETING DATE: 04/24/01
3. That the proposed use will comply with the regulations and conditions specified
in the Municipal Code for such use.
The residential conversion has been conditioned to meet the requirements of the Building
Department yio the ottoinment of 0 building permit and finol inspection.
4. That the granting of this Special Use Permit will not adversely affect the General
Plan of the City of Chula Vista of the adopted plan of any governmental agency.
The proposed use is consistenf with the Generol Plan. The subject property is locafed wifhin fhe
boundaries of the Urbon Core Neighborhood of the Cenfrol Chulo Visto Area Plan. The
proposed use would be consistenf wifh Objective 1 of the Area Plan, "to moinfoin and support the
vitolity of commerciol establishments along Third Avenue."
CONDITIONS:
1. This opprovol sholl expire within 18 monfhs if 0 building permit and subsequent finol
inspection is not approved by the City of Chulo Vis1a within thot time frome.
2. Applicont sholl be required fo comply with the provisions of the City of Chulo Vis1a's Multi-
Family Crime Prevenfion Program.
3. other slandord general conditions ore olso imposed os sef forth in the resolution.
FISCAL IMPACT
No fiscal impocts identified.
ATTACHMENTS
Location Mop
Sife Pion
J:\COMMOEV\STAFF.REP\04-24-01 \208 Third Avenue.doc
4-3
RESOLUTION NO. -
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA GRANTING SPECIAL LAND USE PERMIT
SUP#TCI-O2-01 FOR AN OFFICE TO RESIDENTIAL CONVERSION AT
208 THIRD AVENUE
A. RECITALS
1. Project Site
WHEREAS, the parcel, which is the subject matter of this resolution, is represented in Exhibit A
attached hereto and incorporated herein by this reference, and for the purpose of general description is
located at 208 Third Avenue, Chula Vista; and
2. Project Application
WHEREAS, aduly verified application for a Special Land Use Permit (SUP#TCI-02-01) was filed
with the City of Chula Vista Community Development Department by Greg Fowler (Applicant); and
3. Project Description; Application for Special Land Use Permit
WHEREAS, Applicant requests a Special Land Use Permit to establish a mixed use medical
office/single-family residence (Project) as depicted in plans on file with the Community Deyelopment
Department; and
4. Town Centre I Project Area Committee Record on Application
WHEREAS, the Town Centre I Project Area Committee held a duly noticed public hearing to
consider said application on March 14, 2001 and after considering all evidence and testimony presented
recommended by a vote of 4-0-1 that the Redevelopment Agency APPROVE the Special Land Use
Permit; and
5. Redevelopment Agency Record on Application
WHEREAS, a duly called and noticed public hearing on the Project was held before the
Redevelopment Agency on April 24, 2001 to receive the recommendation of the Town Centre I Project
Area Committee and to hear public testimony with regard to same;
NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency does hereby find,
determine, and resolve as follows:
B. TOWN CENTRE I PROJECT AREA COMMITTEE RECORD
The proceedings and all evidence on the Project introduced before the Town Centre I Project
Area Committee at their public hearing on this Project held on March 14, 2001 and the minutes resulting
therefrom, are hereby incorporated into the record of this proceeding.
C. ENVIRONMENTAL DETERMINATION
The Environmental Review Coordinator has prepared a Notice of Exemption in accordance with
the requirements of the California Environmental Quality Act, and the Environmental Review Procedures
of the City of Chula Vista.
D. SPECIAL LAND USE PERMIT FINDINGS
4-~
The Redevelopment Agency of the City of Chula Vista does hereby make the findings required by
the Agency's rules and regulations for the issuance of Speciai Land Use Permits, as herein below set
forth, and sets forth, thereunder, the evidentiary basis that permits the stated finding to be made.
1. That the proposed use at the particular location is necessary or desirable to provide a
service or facility, which contributes to the general well being of the neighborhood or the
community.
The proposed residential conversion wouid be consistent with adopted policies in the General
Plan and the Redevelopment Plan for the area. The use would be compatible with the existing
and desired retail and service commercial uses along Third Avenue as identified in the Central
Chula Vista Area Plan of the General Plan and the Town Centre I Redevelopment Plan, as the
particular location is not conducive to these uses, but the use as residential will provide the
opportunity in the immediate area for the financial support the preferred uses require.
2. That such use will not, under the circumstances of the particular case, be detrimental to
the health, safety, or general welfare of persons residing or working in the vicinity, or injurious to
property or improvements in the vicinity.
The residential conversion would not be detrimental to permitted land uses in the vicinity. The
proposed use would introduce a residential use to the Town Centre that would be compatible with
the land use categories identified in the General Plan and Redevelopment Plan. In addition, the
reduced parking needs generated by the use would assist businesses and retail customers by
decreasing the demand for scarse on-street parking and off-site parking facilities.
3. That the proposed use will comply with the regulations and conditions specified in the
Municipal Code for such use.
The residential conversion has been conditioned to meet the requirements of the Building
Department via the attainment of a building permit and final inspection.
4. That the granting of this Special Land Use Permit will not adversely affect the General
Plan of the City of Chula Vista or the adopted plan of any government agency.
The proposed use is consistent with the General Plan. The subject property is located within the
boundaries of the Urban Core Neighborhood of the Central Chula Vista Area Plan. The proposed
use would be consistent with Objective 1 of the Area Plan, "to maintain and support the vitality of
commercial establishments along Third Avenue." The proposed use is consistent with the goal of
the Town Centre Redevelopment Plan, the Downtown Vision Statement, and Town Centre
Project Area Committee Land Use Policy, which call for the revitalization of the Town Centre and
downtown as a commercial district. Granting a Special Land Use Permit for the proposed use will
reaffirm the effectiveness of the land use provisions of those documents.
E. TERMS OF GRANT OF PERMIT
The Redevelopment Agency of the City of Chula Vista does hereby grant Special Land Use
Permit LUP#TCI-O2-01 subject to the following conditions:
1. This approval shall expire within 18 months if a building permit and
subsequent final inspection is not approved by the City of Chula Vista
within that time frame.
2. Applicant shall be required to comply with the provisions of the City of
Chula Vista's Multi-Family Crime Prevention Program.
4-:5'"
F. EXECUTION AND RECORDATION OF RESOLUTION OF APPROVAL
The property owner and the applicant shall execute this document by signing the lines provided
below, said execution indicating that the property owner and applicant have each read, understood, and
agreed to the conditions contained herein. Upon execution, this document shall be recorded with the
County Recorder's Office of the County of San Diego, and a signed, stamped copy returned to the
Community Development Department. Failure to return a signed and stamped copy of this recorded
document within ten days of recordation to the Community Development Department shall indicate the
property owner/applicant's desire that the Project, and the corresponding application for building permits
and/or a business license, be held in abeyance without approval. Said document will also be on file in the
Community Development Department's files and known as Resolution No_.
Signature of Property Owner/Applicant Date
G. CONSEQUENCES OF FAILURE OF CONDITIONS
If any of the forgoing conditions fail to occur, or if they are, by their terms, to be implemented and
maintained over time, and any of such conditions fail to be so implemented and maintained according to
their terms, the Redevelopment Agency shall have the right to revoke or modify all approvals herein
granted; deny or further condition issuance of future building permits; deny, revoke, or further condition all
certificates of occupancy issued under the authority of approvals herein granted; institute and prosecute,
litigate, or compel their compliance; or seek damages for their violations. Applicant or successor in
interest gains no vested rights by the Redevelopment Agency approval of this Resolution.
H. INVALIDITY; AUTOMATIC REVOCATION
It is the intention of the Redevelopment Agency that its adoption of this Resolution is dependent
upon the enforceability of each and every term, provision, and condition herein stated; and that in the
event that anyone or more terms, provisions, or conditions are determined by a Court of competent
jurisdiction to be invalid, illegal, or unenforceable, this resolution and the permit shall be deemed to be
automatically revoked and of no further force and effect ab initio.
PRESENTED BY APPROVED AS TO FORM BY
~< s:aJ)<-P/V-!2..-
Chris alo~
Director of Community Development
4-rn
EXHIBIT A
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REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM NO.: .:>
MEETING DATE: 04/24/01
ITEM TITLE: RESOLUTION APPROVING THE COMMUNITY HOUSING
IMPROVEMENT PROGRAM (CHIP) LOAN INTERNAL PROGRAM
MANUAL
SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR ).i¡\.- ~ ts:
REVIEWED BY: EXECUTIVE DIRECTOR #2.
4/5THS VOTE: YES D NO0
BACKGROUND
On February 1, 1977, the City Council adopted Resolution No. 8492 approving the
implementation of a Community Housing Improvement Progrom (CHIP) to provide low
interest loans and grants for low-income residents to rehabilitate their homes. This program
became eligible under Title 1 of the Housing and Community Development Act of 1974,
which provided funds to cities and counties to implement a wide variety of programs,
including property rehabilitation and neighborhood conservation. Funding for the program
was allocated from Community Development Block Grant Funds.
A housing study conducted by the City indicated there were clearly recognizable signs of
neighborhood decoy occurring in Chula Vista. Two programs were designed to provide
assistonce to low-income households whose homes required repairs that the homeowner
could not afford to make. The first program provided low-interest housing rehabilitation
loans and the second program provided standard and emergency repoir grants.
The program wos implemented and CHIP Guidelines ("Guidelines") were developed
detoiling the repairs covered under the CHIP loan and grant programs. Incorporated within
the Guidelines was the establishment of a CHIP Committee which was delegated the task of
reviewing loan and grant applications. Over the course of several years the CHIP loan
portfolio grew to approximately $4 million. The loan program focused rehabilitotion
activities moinly in the Montgomery Area.
The CHIP Loan program was informally discontinued in 1997 due to staffing constraints
and overall workload issues, however the CHIP grant program continued to provide
assistance to both single-fomily homes and mobilehomes. An additional stoff person has
been hired to administer the CHIP program and update the loan program.
Since the demand for the loon program continues to increose, staff has determined that on
Internal Program Manual ("Manual") needs to be developed which will provide written
5-1
PAGE 2, ITEM NO.: 6'
MEETING DATE: 04/24/01
guidance for staff and the CHIP Committee to follow in qualifying applicants and enforcing
stondards for the program. This Manual will be not be distributed to the public. Because
the Manual raises and resolves some importont policy issues, staff is presenting it to the Cify
Council for consideration. The Manual is attoched as Exhibit A. A separate set of
Guidelines were developed for public distribution, attached as Exhibit B.
RECOMMENDATION
That the Redevelopment Agency adopt the resolution approving the CHIP Loan Internal
Program Manual.
BOARDS/COMMISSIONS RECOMMENDATION
The Housing Advisory Commission reviewed and approved the Internal Program Manuol
on March 28, 2001. The Community Housing Improvement Program (CHIP) Committee
reviewed and approved the Manual on April 5, 2001.
DISCUSSION
The purpose of establishing a Manual is to update the existing CHIP guidelines to
incorporate new federal regulations for lead-based paint ond lead-based point hazards;
establish criteria for qualifying applicants; and revise outdated program guidelines. The
previous Guidelines reflected the City of Chula Vista's Building Codes as a method for
determining the priorify of health and safety repairs of the housing units but did not
oddress any loon underwriting guidelines, funding requirements, or loan processes.
Table 1 delineates the major changes from the existing Guidelines to the proposed
Manual.
Table 1
EXISTING CHIP LOAN GUIDELINES PROPOSED INTERNAL PROGRAM MANUAL
No priorify for property location Priorify for properties located in western
Chula Vista between 1-805 and 1-5
lead-based aint not addressed Lead-based aint stondards addressed
No underwriting guidelines Underwriting guidelines specific and
defined
Detailed subordination rocedure
licensed controctors solicited throu h RFQ
S-d-.
PAGE 3, ITEM NO.: S
MEETING DATE: 04/24/01
Internal Proaram Manual
The proposed Monual provides specific loan underwriting guidelines for CHIP applicants
as follows:
.:. Borrowers must be credit-qualified
.:. Total Household Income must be at or below 80% of areo median
.:. Borrowers must have the ability to repay the loan
.:. Borrowers must hove average to good credit scores
.:. Borrowers must have sufficient equity in their home
.:. Borrowers must have a history of timely poyments to other creditors.
In previous Guidelines lead-based paint and lead-based paint hozards were not
identified. The Manual incorporates the U.S. Department of Housing and Urban
Development's mandate requiring rehabilitation programs funded with federal dollars to
develop and implement lead-based paint hazard criteria for the evaluation and reduction
of such hazard in housing built prior to 1978. This legislation ensures that by toking
proper precautions when maintenance, repairs, and renovation work is performed in
homes known or assumed to contain lead-based point, children ond families can be
protected.
Table 2 references the HUD required activities to address lead-based paint based on the
loan amount for each rehobilitation project.
Table 2
< $5,000 $5,000- $25,000 > $25,000
Approach fo Lead Identify and control only Identify ond control all Identify and abate lead
Hazard Evaluation lead hazards effected by lead hazards hazards
and Reduction rehabilifation
Leod Hazord . Paint Testing of surfaces .PaintTesting of . Paint Testing of
Evaluotion to be disfurbed by surfaces to be disturbed surfaces to be
rehabilifation by rehabilitation disturbed by
. Risk Assessment rehabilitation
. Risk Assessment
Lead Hazard .Repair surfaces .Interim controls . Abatement
Reduction disturbed during . Safe work practices .Sofe work practices
rehobilitation .Clearonce of unit .Clearonce of unit
.Sofe work practices
.Clearance of work site
Options . Presume leod-bosed . Presume lead-based . Presume lead-based
paint paint ond/or hazards paint and/or hazards
.Use safe work practices . Use standard .Abafe 011 opplicable
on 011 surfoces treafments surfoces
5-3
PAGE 4, ITEM NO.: b
MEETING DATE: 04/24/01
FISCAL IMPACT
The funding source for the CHIP program has troditionally been from the Redevelopment
20% set-aside funds and will continue to be appropriated to the CHIP progrom. Funds in
the amount of $300,000 are budgeted through the annuol budget process for the CHIP
program, $250,000 for loans and $50,000 for grants. Staff costs to administer the CHIP
program are budgeted in the Housing Division Operating Budget.
AnACHMENTS
Exhibit A: Community Housing Improvement Program (CHIP) Loan Internal Program
Monual- for internal purposes
Exhibit B: Community Housing Improvement Program (CHIP) Loan Guidelines-for
public distribution
j,\COMMDEV\STAFF.REP\O4-24-01\CHIP loon.doc
5-Lj
RESOLUTION NO.
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA APPROVING THE COMMUNITY
HOUSING IMPROVEMENT PROGRAM (CHIP) LOAN
PROGRAM MANUAL
WHEREAS, On February 1, 1977, the City Council adopted resolution 8492
approving the implementotion of a Community Housing Improvement Program (CHIP) to
provide low interest loans and grants for low-income residents to rehabilitate their home;
and
WHEREAS, the Community Housing Improvement Program Loan was discontinued
in 1997 due to a staffing shortage; and
WHEREAS, staff has been hired to review and implement the CHIP Loan program;
and
WHEREAS, the purpose of establishing a Program Manual is to address new
federal regulations addressing lead-based paint and lead-based paint hazards, establish
criteria for qualifying appliconts, and revise program guidelines which may be outdated;
and
WHEREAS, the Housing Advisory Commission and the Community Housing
Improvement Program Committee reviewed and approved the Internal Program Manuol.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of
Chula Vista does hereby approve the Community Housing Improvement Program Loan
Internal Program Manual.
Presented by Approved os to form by
~ ~~
Chris Salomone
Director of Community Development
.:;;- - S-
EXHIBIT A
COMMUNITY HOUSING IMPROVEMENT PROGRAM (CHIP) LOAN
INTERNAL PROGRAM MANUAL
The following is the Internal Program Manual for the Community Housing
Improvement Program (CHIP) Loan, administered by the City of Chula Vista
Community Development Department Housing Division.
Program Overview
The City of Chula Vista will use Low-Moderate funds and Community Development
Block Grant (CDBG) funds, or other eligible sources of funds, to provide loans to
residents in the City of Chula Vista, who have owned their home for at least one
year. The requirement of one year of ownership may be waived if the property is
owned outright, with no existing mortgage balance,
Priority will be given to applicants who reside in the western territory between
Interstate 805 and Interstate 5. Residents must have total household incomes below
80% of the published San Diego County Area Median Income (SDCAMI), in order to
qualify for assistance.
Eligible property improvements shall include both health and safety related and
cosmetic items. Higher priority will be given to health and safety improvements.
Health and safety items may include, but are not limited to, roof repair, plumbing
repair, installation of energy conservation improvements, and installation of hot
water heaters. Cosmetic items may include, but are not limited to, landscaping,
painting, and carpet installation.
Ineligible items include pools, saunas, barbeques, microwave ovens, furniture and
appliances,
CHIP Loans will only be awarded to credit-qualified and income-qualified candidates.
Each borrower can receive more than one loan, however the maximum total loan
amount cannot exceed $24,000. This loan amount was determined by two main
factors: Any rehabilitation monies spent at or in excess of $25,000 triggers stringent
and costly lead abatement procedures, and historically CHIP Loans averaged $24,000
per loan.
PurDose and Objectives
The purpose and objectives of the CHIP Loan Program is to: eliminate health and
safety hazards, remove blight, enhance the quality of the affordable housing stock,
enhance overall neighborhood quality, and provide low-income residents with an
affordable loan option to implement needed repairs to their homes,
5-G:,
CHIP Loan Internal Program Manual
Borrower Eliaibilitv
Borrowers must meet all mortgage eligibility requirements according to the City of
Chula Vista. All borrowers must be income-qualified at or below 80% of area median
income as determined by the SDCAMI. The SDCAMI will reflect annual changes as
published by the U,S. Department of Housing and Urban Development. The
following are the current figures, as of April 9, 2001.
Household Size 1 2 3 4 5
80% of AMI $31,850 $36,400 $40,950 $45,500 $49,150
For homeowners who have added additional persons to the Title of their residence,
the income of all persons on title must be included in the calculation of total
household income,
Loan Programs
There will be two types of loan programs available, depending upon income level.
For those applicants whose incomes are at or below 50% of the SDCAMI, and whose
homes have sufficient equity, a lifetime-deferred 0% interest loan will be available
with no payments due until the sale or transfer of the improved property.
For applicants whose incomes are 50% to 80% of the SDCAMI, and whose homes
have sufficient equity, a standard 3% loan will be available. Payments will be
required each month, in an amount and over a repayment period determined by the
CHIP Loan Committee.
There will be an upfront one-time fee of $25 for the credit report and an additional
processing fee of $250 for each loan, The processing fee may be included in the
loan.
The CHIP Loan will be secured by a deed of trust recorded against and creating a
lien upon the property. Repayment to the City of Chula Vista of the entire principal
and interest of the loan shall be due and payable upon any of the following events:
sale of the secured property; refinance or payoff of any senior mortgage loans
(Please refer to the Subordination Procedure); or upon the formal filing and
recording of a Notice of Default (unless rescinded). Prepayment of the loan shall be
permitted without penalty.
Involved Parties
There are many parties involved in the CHIP Loan Program, They include City of
Chula Vista staff: Community Development Department Housing Division program
staff, and the CHIP Loan Committee, Other City of Chula Vista departments that
might be involved in the CHIP Loan Program include the Building Department, Code
Enforcement Division, the Engineering Department, and the City Attorney's Office.
2
5- - 7
CHIP Loan Internal Program Manual
Outside consultants also involved in the CHIP Loan program are the Licensed
Contractors, FHA Inspectors and Lead Based Paint Consultants.
Lead-Based Paint Issues
It is anticipated that Community Development Block Grant funds will be used to fund
CHIP Loans. The use of CDBG funds requires strict adherence to the Federal Lead-
Based Paint Hazard Reduction Act of 1992, also known as Title X of the Housing and
Community Development Act of 1992, The primary reason why the Department of
Housing and Urban Development (HUD) and its grantees need to address the
presence of lead-based paint and lead-based paint hazards is to protect children and
families, In addition, addressing the presence of lead-based paint and lead-based
paint hazards also reduces liability, reduces insurance costs, and ensures compliance
with Title X as mandated by HUD,
The major types of requirement, per the revised September 15, 1999, HUD
regulations, are as follows:
1. Notification
2. Identification of defective paint surfaces
3. Treatment of defective paint surfaces
4, Response to Elevated Blood Level (EBL) children
5, Other Lead Based Paint Requirements
a. Occupant protection
b. Worker protection
c. Work area containment
d. Document maintenance
The following Table demonstrates the steps necessary in evaluating and correcting
lead-based paint in relation to the dollar amount spent on the rehabilitation of the
property, Rehabilitation costs that meet or exceed $25,000 require complete
abatement of the property if lead-based paint is detected. The cost to test and
abate can be upwards of $20,000 depending upon the size of the house and the
extent of the lead-based paint.
3 :;;;- - ~
CHIP Loan Internal Program Manual
Table A
Rehabilitation: Required Activities to Address Lead-Based Paint
< $5,000 $5,000- $25 000 > $25000
Approach to Lead Do no harm Identify and control lead Identify and abate
Hazard Evaluation and hazards lead hazards
Reduction
Notification Yes Yes Yes
Lead Hazard .Paint testing of surfaces .Paint Testing of surfaces .Paint Testing of
Evaluation to be disturbed by to be disturbed by surfaces to be
rehabilitation rehabilitation disturbed by
.Risk Assessment rehabilitation
.Risk Assessment
Lead Hazard .Repair surfaces .Interim controls .Abatement
Reduction disturbed during .Safe work practices .Safe work practices
rehabilitation .Clearance of unit .Clearance of unit
.Safe work practices
.Clearance of work site
Options .Presume lead-based .Presume lead-based .Presume lead-based
paint paint and/or hazards paint and/or hazards
.Use safe work practices .Use standard treatments .Abate all applicable
on all surfaces surfaces
Underwritina Guidelines
Staff, in conjunction with the CHIP Loan Committee, shall develop standard
underwriting guidelines for the CHIP Loan Program, Guidelines shall include but not
be limited to:
1. Maximum front-end ratio of 33% (Total Housing Expenses)
2, Maximum back-end ratio of 45% (Housing Expenses plus Personal Debt)
3, Maximum loan-to-value ratio of 75%
4. Maximum combined totalloan-to-value of 90% or less
5. The borrower must be either a U.s. citizen or a permanent resident alien; the
borrower must show proof of legal residency
6. Every individual on the note and title must have a social security number
Subordination Procedure
Staff will only consider subordinating the City lien to refinancing of first liens that are
being proposed for purpose of obtaining a fixed rate loan and/or lower payments.
There will be a subordination fee of $125 for each transaction,
Requests that are for the following purposes will be denied:
1. Cash out: Removing equity from the property for cash
2. Debt consolidation: Removing equity from the property for money to be paid
directly to creditors to payoff debt
4
,:;;- - 9
CHIP Loan Internal Program Manual
3, Obtain an adjustable rate mortgage: Any loan product that is not fixed for the
entire life of the loan
ADDlication
Application packets are to be mailed to each prospective applicant via U.s. mail.
Each packet will contain the following:
1. CHIP Loan Program Guidelines
2. 1003 Application Form
3. Authorization to Check Credit
4. Certification of Homeownership
5, Lead Hazard Information pamphlet
ADDlication Review
Staff must receive a complete application packet, which will include the following
completed and signed forms:
1. 1003 Application
2. Authorization to Check Credit
3. Acknowledgement of Lead Hazard Information materials
4. Two years most-recent Tax Returns
5. Two months most-recent Paystubs
6. Income Statements (Investments, child support, social security, disability, SSI,
retirement income, etc,)
7, Year-to-Date Profit and Loss Statement, if self-employed
The following documents pertaining to the existing mortgage will also be required:
1. Copy of Form Deed of Trust
2, Copy of Form Promissory Note
3. Proof of Fire Insurance and Homeowners Insurance
4, Copy of Most-recent Property Tax Bill
5. Most recent Mortgage Statement
Upon receipt of a completed application, staff shall order a merged credit report for
review along with the submitted documents. Staff shall make the initial assessment
as to whether or not the individual would qualify for a CHIP Loan, based upon the
underwriting guidelines. Along with review of the submitted documents, staff shall
review the existing database to determine whether or not the applicant has received
a CHIP Grant or Loan in the past. All findings shall be noted in the applicant's file.
Upon completion of the application review, staff shall send a letter to the applicant
notifying them of their status, The letter shall include a phone number and contact
person with which to schedule a face-to-face interview. This letter shall also provide
details as to the processing time and procedures,
5 s- (0
CHIP Loan Internal Program Manual
Initial Interview
Staff shall schedule a face-to-face initial interview with the borrower(s), The initial
interview will consist of review of the application, explanation of the policies and
program procedures, and review of requested repairs. At this time, staff shall explain
the details of the program and should answer as many of the applicants' questions as
possible.
During this interview, staff shall explain the process for obtaining cost estimates and
their submittal. Staff will provide the applicant with a list of local Licensed
Contractors who have been approved through the City of Chula Vista's Request for
Qualifications (RFQ) process, This list will be distributed to CHIP applicants for
reference purposes only,
Applicants shall be required to sign an Affidavit of Acknowledgement certifying that
they have undergone a face-to-face interview and have received the complete
application packet.
InsDections
Staff, including a representative of the Community Development Department and
either the Building Department or a third party FHA Inspector, shall coordinate with
the applicant to arrange for the initial inspection. Staff shall attend the initial
inspection for each property.
During the inspection, the applicant shall provide detailed information to staff as to
the types of repair and modifications being requested, Staff should also make their
own assessment of any needed or critical health and safety repairs and discuss them
with the applicant. Upon completion staff will prepare an Inspection Report and
Work Write-Up for the applicant. This information will then be placed in the
applicant's file.
CHIP Committee
The CHIP Loan Committee has a standing meeting the first Thursday of every month
beginning at ten o'clock in the morning, held in the Housing Division Conference
Room.
The CHIP Committee is comprised of three City employees, one each from the
Building Department, Finance Department, and Community Development
Department. A representative from the City Attorney's office provides the committee
with legal advice. The purpose of the CHIP Committee is to review applications for
loan assistance, review and approve work requests, and develop and implement
CHIP guidelines.
6
5 - rf
CHIP Loan Internal Program Manual
In preparation for the meeting, staff prepares the CHIP Committee packet, which
includes an agenda, minutes from the last meeting, summaries of the CHIP
applications, and any other documentation or information for other items being
reviewed. Summaries of the applications include the following information:
1. Name of Applicant
2, Address
3. Name of Mobilehome Park, if applicable
4. Annual Income and Source of Income
5. Percentage of AMI that Applicant meets
6. Household Occupancy
7, Fico Score generated from Credit Report
8, Title Information
9. Type of repairs being requested
10,Summary of the submitted bid: Name of the Licensed Contractor, Bid Price,
and included repairs
l1.Inspection Report
12. Staff Assessment
13. Staff Recommendation
14,Additional Comments
15. Space for Committee Comments
16.Area for Committee Members to indicate approval or disapproval
17. Page numbering for easy reference
CHIP Committee Packets are to be distributed to Committee members at least one
week in advance, Community Development staff is to organize, coordinate, and
chair the CHIP Committee meeting and to be available for questions and discussion.
Notification of Results! Affidavit of Responsibilitv
Once the CHIP Committee has made their final determination for each case, staff
shall endeavor to provide written notice of the results to each applicant within two
days. For applicants that have been approved, an Affidavit of Responsibility, Deed of
Trust and Promissory Note shall be included in the correspondence. The Loan
documents shall be on forms previously approved by the City Attorney's Office, All
documents must be signed and returned before a loan can be made,
The Affidavit of Responsibility requires that the CHIP Loan recipient indemnify, hold
harmless and release the City from any claims or losses for any disputes that might
arise from the work funded by the loan, This includes any dispute between the
borrower and a contractor regarding the quality of work and materials. Each
recipient must indicate which contractor they have chosen to conduct work and to
sign and date the Affidavit of Responsibility.
7
.::s- - I d-
CHIP Loan Internal Program Manual
Once staff has received the signed documents, a letter must be sent to the licensed
contractor, which indicates the name of the borrower, address, loan amount, and the
process for payment. This letter should be sent within two days of receipt of the
Affidavit of Responsibility,
Any determination by the CHIP Committee must be conveyed in writing to the
applicant. Staff is responsible for all follow-ups with the applicants, Phone calls
received by the applicants should be returned promptly, within 24 hours,
Loan Documents
Staff shall provide the original Deed of Trust and the Promissory Note to the
borrowers for signature, The appropriate signatures for the City of Chula Vista will
also be obtained. The Deed of Trust will then be recorded through the County
Recorder's Office. A copy will be given to the borrower and appropriate Finance
Department Staff, and a copy will be placed in the file.
Licensed Contractors
Staff shall be responsible for the release of a Request for Qualifications (RFQ) to
solicit qualified licensed contractors who will be available to provide bids and conduct
work for CHIP Loan applicants, Staff shall also develop and maintain a list of
participating licensed contractors, which is distributed for informational purposes, in
each CHIP Loan Application Packet. Each licensed contractor must provide a copy of
the State Contractor's License and their City of Chula Vista Business License, to be
kept on file and updated annually and attend an orientation, Contractors will also be
required to sign an Acknowledgement regarding Policies for Participation including
issues of: the disbursement process and disputes between Contractors and their
clients.
New licensed contractors that are hired by CHIP Loan recipients must also attend
an orientation with staff, provide a copy of the State Contractor's License and the
City of Chula Vista Business License, and sign all appropriate forms before beginning
work.
Loan Disbursements to Contractors
Staff will provide a standard form, which the licensed contractor must use to itemize
each repair and associated cost that the bid estimate is being provided for. Upon
completion of a percentage of repairs, the licensed contractor must have the
borrower sign, and staff review, the payment invoice, The licensed contractor must
then submit the invoice for payment to Housing Division staff, Staff will prepare a
two-party check that shall be made payable to the borrower and the contractor, and
must be signed by both, in order to be cashed, This will help to ensure that the
borrower is aware of what is being indicated as work completed and the repairs that
are being paid for.
8 5-13
CHIP Loan Internal Program Manual
Staff conducts spot checks during the construction period and upon completion of
work. Staff prepares a visual assessment/progress report, which is placed in the
applicant's file.
Loan Default Procedures
Should staff receive notification that non-payment of the first trust deed or the City
of Chula Vista's second trust deed has occurred, the City Attorney's Office will be
notified, and the following process will be followed:
1. A letter will be sent to the Borrower requesting documentation showing proof
of payment or an explanation of non-payment
2. Notice of Default will be sent if no response is received and if Borrower
remains in non-payment status
3. Notice of Sale will be published and normal sale procedures will be followed
Loan Payoff
Staff must review all requests for Payoff Demands. A letter will be generated, in the
form of a payoff demand, indicating the borrower's name and address, payoff
amount, and procedures for payoff. Originals of the Deed of Trust and Promissory
Note will only be relinquished upon full payment of the loan.
Public Outreach
Staff is responsible for making presentations to the community-at-Iarge. Mobile
home parks, realtor association meetings, and neighborhood meetings are all
applicable and possible forums for information dissemination. Staff must schedule at
least one presentation per month as general public outreach about the CHIP Loan
Program.
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~(~ EXHIBIT B
=--=-..~
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CITY OF
CHUlA VISTA
COMMUNITY HOUSING IMPROVEMENT PROGRAM (CHIP)
LOAN GUIDELINES
Dear Property Owner:
The City of Chula Vista, through the Community Development Department, is providing
home improvement loans to low-income families throughout Chula Vista, These funds
are meant to address health and safety related rehabilitation items, followed by
cosmetic improvements, Please review the following guidelines to assist you in your
application submittal.
ADDlicant Reauirements
1. All applicants must be owner-occupants, in residency for at least one year.
The residency requirement may be waived if there is no existing mortgage or
line of credit attached to the property, Priority will be given to residences
that are located in the Western Territory between the 1-5 and 1-805,
2, Eligible property improvements include, but are not limited to, roof repair,
fences, safety repairs, energy conservation, painting, stucco, and some
landscaping. Ineligible items include furniture, microwave ovens,
refrigerators, pools, and spas, Priority will be given to emergency and critical
types of improvement needs.
3, All applicants must be credit qualified and have the ability to repay a loan,
This should be demonstrated by average to good credit scores and a history
of timely repayment to other creditors,
4. Applicants are eligible for program benefits if the total gross family income is
less than 80% of Area Median Income (AMI), adjusted for household size,
This will be discussed in greater detail under the Loan Programs Section.
Income is defined as: government benefits such as social security, 551, unemployment
benefits, pensions, wages, salary, tips, commissions, interest, child support, alimony,
and business income,
A family is defined as a person or persons, related by blood, marriage, or operation of
law, who share the same dwelling unit.
Loan Proarams
Two types of loan programs are available, depending upon income level, the amount of
equity in the property, existing debt, and credit history of the applicant. The income
level of the applicant defines the two options:
.5--IS-
1. Applicants earning 50% or less of AMI are eligible for a lifetime deferred loan
at 0% interest, No payments will be due until sale or transfer of the
improved property. The income limits for applicants earning 50% and below
of AMI is outlined in the following chart:
. . .
50% of AMI
2. Applicants earning 51% to 80% of AMI are eligible for a standard 3%
interest loan, Payments will be required each month in an amount and over
a repayment period determined by the CHIP Committee, The total
household may not exceed the figures outlined in the following chart.
. . .
80% of AMI
3. An upfront fee of $25 will be required for the credit report and an additional
processing fee of $250 will also be required at a later date, although the
processing fee may be included in the loan.
Initial ADDlication Reauirements
When you submit your application, please be sure to include the following information,
Failure to submit the required documentation will delay review of your application.
1. Completed Application (1003)
2, Income verification for the last 2 months or the most recent statements,
including social security payments, retirement checks, paycheck stubs, and
any other source of income
3, Federal Tax Returns for previous 2 years
4, Bank Statements for 2 most recent months
5, Signed Authorization to Check Credit and Check for $25,00
6, Acknowledgement of Lead Hazard Information materials
The following documents pertaining to your existing mortgage will also be required:
1. Copy of Form Deed of Trust
2. Copy of Form Promissory Note
3. Proof of Fire Insurance and Homeowners Insurance
4, Copy of most-recent Property tax Bill
5, Copy of most-recent Mortgage Statement
5-/(,
Next SteDs
Upon receipt of a completed application and all required documentation, staff will order
a merged credit report and review the submitted documentation. An interview will then
be scheduled to determine initial eligibility for the program and to discuss the program
requirements and process,
Once the applicant has determined that they wish to continue with the loan process staff
will schedule a home inspection with a qualified Inspector who will discuss the proposed
scope of work with the applicant. A work proposal will then be prepared and a copy
given to applicant. The applicant must then contact three licensed contractors to submit
bid estimates for the proposed scope of work.
Please note that upon approval for a CHIP loan, the applicant is responsible to negotiate
the contract with the licensed contractor and to assume responsibility for the work to be
performed, In the event that the work is not performed to the satisfaction of the
applicant, it is the applicant's responsibility to assume liability that may occur between
the applicant and the contractor. The CHIP loan program strives to implement a
program that provides measures for accountability by both the applicant and the
licensed contractor but is not responsible for the contract that is entered into by both
parties. The Community Development Department will not get involved in
applicant/contractor disputes.
CHIP Committee Review
Upon receipt of the three bids from the licensed contractors, the complete application
packet will be scheduled for presentation at the next CHIP Committee meeting. The
CHIP Committee will make the final determination as to the eligibility of the applicant
and the loan structure, A letter outlining the Committee's decision will be mailed to the
applicant outlining the next steps required to proceed. Should the applicant choose to
assume the loan, staff will disseminate further information,
Staff Contact
The information provided in the CHIP Loan Guidelines handout is for informational
purposes only. The program is subject to change, and any interested applicants should
contact the City of Chula Vista Community Development Department for further
information, Staff may be contacted at (619) 585-5722,
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