HomeMy WebLinkAbout2008/11/25 Item 8
CITY COUNCIL
AGENDA STATEMENT
:$Vj~ CITY OF
- CHUlA VISTA
ITEM TITLE:
NOVEMBER 25, 2008, Item ~
PUBLIC HEARING TO CONSIDER:
A. RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AMENDING THE FISCAL YEAR
2008/2009 ANNUAL ACTION PLAN, ALLOCATING
$2,830,072 OF COMMUNITY DEVELOPMENT BLOCK
GRANT NEIGHBORHOOD ST ABILIZA TION PROGRAM
(NSP) FUNDS TO BE UTILIZED IN AREAS OF
GREATEST NEED INCLUDING THE NORTHWEST
TARGET NEIGHBORHOOD AND AUTHORIZING THE
SUBMITTAL OF THE AMENDMENT OF THE ANNUAL
ACTION PLAN TO THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AMENDING THE FISCAL YEAR
2008/2009 ANNUAL ACTION PLAN, ALLOCATING
$2,830,072 OF COMMUNITY DEVELOPMENT BLOCK
GRANT NEIGHBORHOOD STABILIZATION PROGRAM
(NSP) FUNDS TO BE UTILIZED IN AREAS OF
GREATEST NEED INCLUDING THE SOUTHWEST
TARGET NEIGHBORHOOD AND AUTHORIZING THE
SUBMITTAL OF THE AMENDMENT OF THE ANNUAL
ACTION PLAN TO THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
C. RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AMENDING THE FISCAL YEAR
2008/2009 ANNUAL ACTION PLAN, ALLOCATING
$2,830,072 OF COMMUNITY DEVELOPMENT BLOCK
GRANT NEIGHBORHOOD STABILIZATION PROGRAM
(NSP) FUNDS TO BE UTILIZED IN AREAS OF
GREATEST NEED INCLUDING THE EAST TARGET
NEIGHBORHOOD AND AUTHORIZING THE
SUBMITTAL OF THE AMENDMENT OF THE ANNUAL
ACTION PLAN TO THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
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SUBMITTED BY:
THE UNITED STATES DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT
D. RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHOLA VISTA ALLOCATING $452,936 OF HOME
INVESTMENT PARTNERSHIIP ACT (HOME) FUNDS
TO THE PILOT HOMEOWNERSHIP PROGRAM FOR
REAL ESTATE OWNED PROPERTIES
ASSISTANT ~C~ OF REDEVELOPMENT &
HOUSING7/ ~
INTERIM CITY MANAGER S /
REVIEWED BY:
SUMMARY
The pwpose of the public hearing is to solicit public input on the proposed amendment to
the 2008/2009 HOD Annual Action Plan to allocate new Neighborhood Stabilization
Program funds established by Title III of the Housing and Economic Recovery Act of 2008
to various activities and $452,936 of existing prior year HOME entitlement funds to the
pilot homeownership program for real estate owned properties.
4/STHS VOTE: YES D NO 0
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project for compliance
with the National Environmental Protection Act due to the use of Federal funds, and has
determined that the proposed project is deemed exempt under the National Environmental
Protection Act (NEP A) Regulations.
RECOMMENDATION
Council conduct the public hearing and adopt the resolutions.
BOARDS/COMMISSION RECOMMENDATION
The Housing Advisory Commission reviewed the proposed amendments and allocations on
November 13,2008 and voted to recommend (5-0) Council adopt the proposed amendment
and allocations.
DISCUSSION
On May 6, 2008, the City Council approved the Fiscal Year 2008/2009 Annual Action
Plan (Action Plan) for three Federal Grant Programs and authorized its submittal to the
U.S. Department of Housing and Urban Development (HOD). The Action Plan is
developed annually using significant public input and describes the City's spending
priorities. It serves as the local guide for three of HOD's grant programs [Community
Development Block Grant (CDBG), HOME Investment Partnership (HOME), and
Emergency Shelter Grant] which support activities to benefit lower income households.
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In September 2008, HUD notified the City of Chula Vista that in addition to the annual
CDBG entitlement, the City is eligible to receive approximately $2.8M in one-time
COBG funds through the new Neighborhood Stabilization Program (NSP). The purpose
of the NSP program is to assist cities dealing with the negative effects of abandoned and
foreclosed properties. In order to receive the grant funds, the City must submit to HUD
an amendment to the existing CDBG Annual Action Plan by December I, 2008
identifying how funds will be obligated within an 18 month period. The NSP funds may
be used to purchase foreclosed or abandoned homes/properties, rehabilitate, redevelop,
resell and/or rent these homes to help stabilize neighboring homes and neighborhoods.
The funds may not be used to assist households at risk offoreclosure.
In addition, HUD identified targeted responsibilities for state and local governments
implementing the NSP. A summary of those responsibilities are listed below:
I. Priority emphasis must be placed in targeting the funds to low- and moderate-income
areas, and other areas with the greatest need;
2. All funds must serve households less than 120 Percent of Area Median Income
(AMI); and
3. Not less than 25 percent of the funds shall be used toward very low mcome
individuals or families (incomes that do not exceed 50 percent of area median
income).
Annual Action Plan
The City of Chula Vista's Consolidated 5 Year Plan (adopted May 10, 2005) is a
comprehensive planning document which identifies the City's needs in housing,
homelessness, and community and economic development. The Annual Action Plan
includes the allocation of funds for capital improvements, community enhancement
projects, economic development, public services, affordable housing, first-time
homebuyer programs and administration! planning activities. Any subsequent changes or
revision to the approved Annual Action Plan constitutes a formal amendment to the Plan.
Under the NSP the City must fast-track community input by utilizing websites and a
streamlined process. In addition to the Housing Advisory Committee meeting on
November 13th, staff held public meetings to encourage input on the program, including
two general public meetings on October 16th and November 6th and an informational item
with the Chula Vista Redevelopment Corporation on November 13th. A 15-day comment
period to allow for the public to review the proposed amendment and make comments or
suggestions began on November lOth and will end on November 24, 2008. As of the date
of this report, there were no comments received. Comments received after the date of
this meeting will be incorporated into the amendment.
Proposed Amendment
The proposed amendment includes the allocation of $2.8M in NSP funds which are to be
channeled through the Community Development Block Grant Program. In order to
maximize use of the new funds, staff is proposing to allocate an additional $452,936 of
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prior year HOME funds, totaling $3 million dollars in direct assistance to be used for the
purpose of stabilizing the housing crisis in our community.
As stated above, HUD has identified a series of criteria to identify those areas of "greatest
need" and establishing the most effective mechanisms for "stabilizing" neighborhoods.
Staff used a variety of data sources to document existing and predicted foreclosure data
as illustrated in the proposed amendment and identified areas of "greatest need" within
the City to address HUD's Target Responsibility #1. These target neighborhoods include
portions of northwest and southwest Chula Vista, Eastlake, and Otay Ranch communities,
as illustrated in Exhibit F of the attached draft 2008/2009 Annual Action Plan
Amendment.
After review of the eligible uses, identification of the target neighborhoods, and public
input, staff has identified those activities that most directly impact and assist declining
neighborhoods due to foreclosures, as follows:
. Target NSP funds for down payment and closing cost assistance for low- and
moderate-income buyers within the target neighborhoods. The City currently
administers a Down Payment and Closing Assistance Program funded through the
HOME program, limited to assisting households earning no more than 80% of the
Area Median Income (AMI). The new NSP program will allow funds to be used by
families earning up to 120% of the AMI, addressing HUD's Target Responsibility #2.
By allocating additional funds to an established City program the City will be able to
assist more families and remove up to 35 foreclosed properties from the market.
· Issue a Notice of Funding Availability (NOFA) to assist an organization in the
purchase and rehabilitation of foreclosed properties with the purpose of creating
permanent rental housing opportunities for residents below 50% of the AMI
(residents of this income category have limited disposable income to maintain
homeownership). The partners, including but not limited to, Community Housing
Development Organizations (CRDO) and/or the Regional Continuum of Care will
assist the City in identifying the best method for leveraging NSP funds with other
special needs or low income housing funding opportunities. By leveraging NSP
funds with HOME funds $IM has been allocated to each income category and
thereby has exceeded the HUD requirement to assist very low income residents, with
35% of the NSP funds designated for 50% AMI, addressing HUD's Target
Responsibility #3.
Following is a summary of the proposed use ofNSP funds:
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Administration (10% NSP)
Assist partner in the Purchase and
Rehabilitation of foreclosed properties for
rental housing, including but not limited to
Community Housing Development
Organizations (CHDO) and/or the
Re ional Continuum of Care roviders.
Down Payment and Closing Cost
Assistance Program to assist in purchase
of foreclosed properties (including
rehabilitation assistance, marketing, and
ro am costs)
Program
monitonn
and
$ 283,008
Households at or below 50% of
Area Median Income
$1,000,000
Households earning at or below
120% of Area Median Income
may be eligible for a loan (further
described in the attached Action
Plan Amendment)
$2,000,000
DECISION MAKER CONFLICT .
Staff has reviewed the property holdings of the City Council and has found three conflicts
exist, in that Councilmembers Castenada, McCann and Rindone have property holdings
within 500 feet of the boundaries of the target neighborhoods which are the subject of
this action, as follows:
. Northwest Target Neighborhood - Castaneda and Rindone
. Southwest Target Neighborhood - McCann
. East Target Neighborhood - no conflicts
FISCAL IMPACT
HOME Investment Partnership funds are block grant funds available to the City for
affordable housing purposes from the u.S. Department of Housing and Urban
Development. Downpayment assistance loans and related administration are an eligible
HOME use. Funds totaling $452,936 will be allocated to the existing non-CIP project
number for this purpose.
By December 1 st the City must submit an Action Plan Amendment to identify the
expenditure ofNSP Funding in the amount of$2,830,072. NSP and HOME funds will be
brought back for appropriation, once the City is notified that the substantial amendment
has been approved by BUD.
ATTACHMENT
1. 2008/2009 Draft Annual Action Plan Amendment
Prepared by: Angelica Davis, Project Coordinator II, Redevelopment & Housing
Jose Dorado, Project Coordinator II, Redevelopment & Housing
Stacey Kurz, Senior Project Coordinator, Redevelopment & Housing
8-5
Attachment 1
DRAFT
City of Chula Vista
Neighborhood Stabilization Program
Substantial Amendment (NSP)
to the
2008/2009 Annual Action Plan
Prepared by:
CITY OF CHULA VISTA
Redevelopment
&Housing
Grant Administrators: Angelica Davis, Project Coordinator
Jose Dorado, Project Coordinator
276 Fourth Avenue; Chula Vista, CA .91.910
Telephone: (61.9) 6.91-5036
Facsimile: (61.9) 585-56.98
www.cLchula-vista.ca.us
TABLE OF CONTENTS
A. AREAS OF GREATEST NEED ...................................................................................1
B. DISTRIBUTION AND USES OF FUNDS ............................................................... S
C. DEFINITIONS AND DESCRiPTION....................................................................... 7
D. VERY lOW INCOME TARGETING .....................................................................10
E. ACQUISITION AND RELOCATION.................................................................... 10
F. PUBLIC PARTICIPA TION...................................................................................... 10
G. NSP INFORMATION BY ACTIVITY..................................................................... 11
TABLES:
1 - Summary of low- & Moderate Eligible, HUD Risk, Recorded Foreclosures, & RAP
2 - Census Tracts with Greatest Need
EXHIBITS:
A - Low- and Moderate-Income Eligible Census Tracts
B - HUD High Foreclosure Risk Factor
C - Recorded Properties in Foreclosure from 6/1/08 to 9/30/08
D - Properties Registered in Chula Vista Abandoned Residential Properties Program
as of 10/15/08
E - Census Tracts with High Risk and Foreclosures
F - Target Neighborhoods
G - Northwest Target Neighborhood
H - Southwest Target Neighborhood
I - East Target Neighborhood
8-7
First Amendment to the
2008/2009 Annual Action Plan
for Implementation of the
Neighborhood Stabilization Program
A. AREAS OF GREATEST NEED
Introduction
Chula Vista is the second largest municipality in the County of San Diego metropolitan
statistical area (MSA, also known as "San Diego-Carlsbad-San Marcos"), with an estimated
population of 231,305 residents (based on San Diego Association of Governments). The
City covers approximately 50 square miles along the San Diego Bay and is surrounded by
National City, the City of San Diego, and the unincorporated areas of the County. Two
major north-south freeways, Interstate 5 and Interstate 805 traverse Chula Vista. The area
west of the 1-805 "western Chula Vista" is built up and includes redevelopment areas. The
"eastern area" is comprised of several master-planned communities in various stages of
approval and implementation.
Foreclosure Process California
California is a non-judicial foreclosure state. The foreclosure process begins with a
recorded Notice of Default (NOD), which is a public notification that the borrower has
fallen behind in the monthly mortgage payments. If the default is not cured, or the loan
renegotiated or replaced, the NOD is followed by a Notice of Trustee's Sales (NOTS/NDS)
after a minimum of three months. The actual Trustee's Sale can not occur less than 20 days
after public notice. The Trustee's Sale is a public auction, at which anyone may place a
bid, including the lender and any junior lien holders. The foreclosure process may be
stopped if the default is cured 5 days in advance of the sale date. If no one bids, and the
foreclosure process was not stopped, title (ownership) of the property reverts to the lender
as REO property (Real Estate Owned property). The typical foreclosure process takes at
least 117 days in California.
In Chula Vista within the past four months (from June 1,2008 through September 30, 2008)
there were a total of 935 properties taken all the way through the foreclosure process.
Housing and Economic Recovery Act of 2008 (HERA)
The HERA statue indicates that a grantee should give priority emphasis in targeting the
funds that they receive to "those metropolitan areas, metropolitan cities, urban areas, rural
areas, low- and moderate-income areas, and other areas with the greatest need, including
those-
(A) with the greatest percentage of home foreclosures;
(B) with the highest percentage of homes financed by a subprime Mortgage related
loans; and
(C) identified by the State or unit of general local government as likely to face a
significant rise in the rate of home foreclosures."
In order to determine the impacted areas, or Target Neighborhoods, a variety of data
sources were reviewed.
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Low- and Moderate-Income Eligible Census Tracts
The City of Chula Vista began its needs assessment by identifying the census tract block
groups in the City with income levels at or below 120 percent of the Area Median Income
(AMI). For purposes of this Amendment, the low, moderate, and middle-income areas will
be noted as "LMMI". This data was provided by the U.S. Department of Housing and
Urban Development (HUD) and this data can be found on the HUD website at the
following web address: http://www.huduser.org/publications/commdevl/nsp targethtml.
There are a total of 51 census tract block groups in the City and 32 of them are qualified
LMMI areas (81-120% AMI), asillustrated in Exhibit A. Exhibit A further delineates those
areas that are eligible under annual CDBG allocations at 80% of the area median income
and below.
HUD High Foreclosure Risk Areas
Foreclosures have occurred through the City of Chula Vista, but are concentrated in certain
areas. HUD has compiled a set of data that include the following:
. Area of unemployment rate;
. Area average housing sales price decline (since the peak of the market);
. High cost loan rate (mortgages with interest-only payment options, stated income
mortgages, mortgages with high loan to ratios, etc.);
. The predicted 18 month underlying foreclosure rate; and
. Housing units that have been vacant for at least 90 days.
The data is made available at the Census Tract Block Group (CTBG) level for the entire
country. The data for Chula Vista was evaluated and a 10-step priority ranking for those
CTBGs most at risk of becoming blighted due to large numbers of vacant, foreclosed units
was developed. Using the high cost loan rate and predicted 18-month underlying
foreclosure rates as key indicators for Chula Vista, the standard deviation was calculated for
the high cost loan rates. The standard deviation was then used as the threshold between
rank order numbers. A visual representation of these impacts is shown as Exhibit Band
summarized by census tract in Table 1.
Properties in Foreclosure
In order to establish those areas with the highest number of properties in the foreclosure
process, Chicago Title data was used to establish the number and locations of Notice of
Defaults (NOD), Trustee Sales (NDS), and Real-Estate Owned (REO) properties as recorded
from the period of June 1, 2008 to September 30, 2008. These impacts are illustrated in
Exhibit C and summarized by census tract in Table 1.
Abandoned Residential Property
In August 2007, the City of Chula Vista adopted an Ordinance which requires mortgage
lenders to inspect defaulted properties to confirm that they are occupied. If a property is
found to be vacant, the program requires that the lender exercise the abandonment clause
within their mortgage contract, register the property with the City and immediately begin to
secure and maintain the property to the neighborhood standard. A visual representation of
properties that were registered in the Abandoned Residential Property Program as of
October 15,2008 is shown as Exhibit D and summarized by census tract in Table 1.
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TABLE 1
Summary of Low- & Moderate Eligible, HUD Risk, Recorded Foreclosures, & RAP
Low-& HUD NY.:e ':]; C,;,e::,:::::2':l
Mod- ~ ~ ~ NOD+NSD RAP
- Census Tract Eligible Risk :::~-: f:; >-;:;3 -,'J,:)5<-:::':: +REO Cases
ILMMIJ''' Scare ,~IC:::;J - 1\50) REO
12302 Y 5 2 3 5 10 2
12303 Y 6 9 8 9 26 12
12304 Y 6 6 5 3 14 11
12401 Y 5 4 0 4 8 5
Y 12 5 11 28 8
Y 19 4 5 28 10
Y 21 12 10 43 17
Y 13 6 8 27 10
12800 Y 6 11 5 11 27 12
12900 Y 6 11 7 11 29 15
13000 Y 5 17 10 7 34 12
13102 Y 6 18 8 13 39 15
13103 Y 5 3 3 0 6 4
13104 Y 6- 10 8 8 26 6
13203 Y 6 7 5 4 16 5
,... Y * 4 2 1 7 4
Y 9 5 0 14 5
Y 9 3 8 20 12
13301 Y 29 10 19 58 22
13302 Y I 20 8 13 41 20
Y 28 16 17 61 22
Y 18 12 27 57 27
Y 11 13 15 39 15
Y 31 14 31 76 38
Y 6 35 24 41 43
Y 6 182 114 171
N 6 55 29 " 41
"' --,
y 15 10 16 41 22
Y 6 244 130 188
13401 N 6 18 12 16 46 16
13409 Y 3 22 11 10 43 17
13410 N 6 41 15 24 80 27
13411 N 5 5
13412 N 5 8 6 9 23 13
13413 Y 5 32 "^ 26 73 20
,~
13414 N 4 35 13 24 72 27
13415 Y 5 8 5 2 15 3
13416 Y 5 6 3 9 18 5
13417 N 4+t 7 10 7 24 2
Y "" 38 21 50
Y 6 66 35 51
21303 N 5 25 19 12 56 24
. - ,
Census Tracts Identified as eligible If any block group Wlthln the tract was LMMI.
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Target Neighborhoods - Areas of Greatest Need
Based on the data collected above, those census tracts that had the highest risk and
foreclosures were identified, as illustrated in Exhibit E and Table 2. They included one or
more of the following criteria:
. HU D Risk score of 7 or higher;
. 100 or more recorded properties in foreclosure; and/or
. 50 or more properties registered in Abandoned Residential Properties program.
Table 2
Census Tracts with Greatest Need
12402 Y 12 5 11 28
12500 Y 19 4 5 28
12600 y 21 12 10 43
12700 Y 13 6 8 27
13205 y 9 5 0 14
13206 Y 9 3 8 20
13303 y 28 16 17 61
13306 y 18 12 27 57
13307 y 11 13 15 39
13308 Y 31 14 31 76
13309 y 35 24 41
13310 Y 182 114 171
13311 N 55 29 37
13312 Y 15 10 16
13313 Y 244 130 188
13418 Y 38 21 50
13419 y 66 35 51
Since funding is limited, further analysis of the identified census tracts was required in
order to determine which should be included as Target Neighborhoods, in order to impact
specific communities within the City. Census tracts 12500 and 12600 are largely occupied
by the undeveloped Bayfrant with little residential property and were therefore excluded.
In addition, census tracts 13205 and 13206 are located along primarily industrial corridors
with little residential property. Tracts 13309 and 13312 were also excluded in order to
more directly target the southwest neighborhood west of Interstate 805 (1-805). Finally
census tracts 13311 and 13419 was excluded due to a high cost of houses in that area and
in order to focus funds more directly at the older section of Eastlake and Otay Ranch where
higher foreclosure rates exist.
The resulting focus areas are as follows, and depicted in Exhibits F - I:
1. Northwest Target Neighborhood - consisting of census tracts 12402 and 12700;
2. Southwest Target Neighborhood - consisting of census tracts 13303, 13306,
13307, and the residential portion of tract 13308; and
3. Eastern Target Neighborhood - consisting of census tracts 13418 and portions of
tracts 1 3310 and 13 311 .
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B. DISTRIBUTION AND USES OF FUNDS
NSP Eligible Uses and Activities
Some of the eligible uses for the funds include but are not limited to:
. Financing mechanisms for purchase and redevelopment of foreclosed upon homes
and residential properties (e.g. 50ft-seconds, loan loss reserves, and shared-equity
loans for low- and moderate-income homebuyers);
. Purchase and rehabilitation of homes and residential properties that have been
abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and
properties;
. Establishing land banks for homes that have been foreclosed upon; and
. Demolition of blighted structures.
Ineligible Activities
In general NSP activities mirror eligibility requirements under CDBG. In addition, NSP
funds cannot be used for foreclosure prevention, demolition of non-blighted structures, or
purchase of properties not abandoned or foreclosed upon.
Chula Vista Selected NSP Uses and Activities
The City of Chula Vista has identified the selected NSP eligible uses and activities in the
table below. The funds will be used in two primary activities, plus administration:
Activity Targeted Uses Eligible Activities
Assist a partner in the Purchase &
Rehabilitation of abandoned or
foreclosed properties for
permanent rental housing, . Acquisition
including but not limited to, Households at or
. Disposition
Community Housing below 50% of Area Relocation
Development Organizations Median Income .
(CHDO), members of the San . Rehabi I itation
Diego Regional Continuum of
Care Council, and/or affordable
housing develooer
Households earning
Establish financing mechanisms up to 120% of Area . Acquisition
for acquisition of abandoned or Median Income may . Rehabilitation
foreclosed properties- Shared be eligible for a DCCA . Appraisals
Equity Down Payment and at the subsidy levels
Closing Cost Assistance Program described in the . Program Delivery
(DCCA) Financing Mechanisms . Housing Counseling
Section of this report
Funding for the down payment and closing cost assistance will be prioritized to those areas
of greatest need, Target Neighborhoods, as identified above.
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Funding Breakdown
The City of Chula Vista will receive $2,830,072 in NSP funding. The City plans to use
55% of this funding as a financing mechanism to assist persons at or below 120% of area
median income and 35% of the funding for acquisition/rehabilitation of
abandoned/foreclosed properties to assist persons at or below 50% of area median income.
The remaining 10% or $283,007 will be used for administration.
Note that it may be necessary to shift funding from one eligible use to another in order to
meet the expenditure deadlines. However, as required by the NSP, the percentage of
Administration funding will not exceed 10% of the allocation and at least 25% will be used
for eligible activities to benefit persons or households at or below 50% of the area median
income. An illustration of the distribution and summary of each activity follows.
Distribution of Chula Vista
NSP Funding
Adrrinistration
10% or $283.007
DCCA to
< 120% AM
55% or
$1,547,065
Fl.Jrchase &
Rehabilitation for
Rentai to < 50%
AMI
35% or
$1,000,000
Financin~ Mechanism (DCCA) (Section 2301 (c)(3)(A))
The City plans to use 55% or $1,547,065 of this funding as a financing mechanism [Shared
Equity: Down Payment and Closing Cost Assistance (DCCAl] to assist persons at or below
120% of area median income to acquire foreclosed or abandoned residential properties.
Priority will be given to first-time homebuyers that are purchasing within the Targeted
Neighborhoods and will closely mirror the City's existing program guidelines for the Shared
Equity: Down Payment and Closing Cost Assistance Program, by providing gap financing,
as follows:
. Homebuyers with household incomes that do not exceed 120% of area median
income may borrow up to $40,000.
. Homebuyers with household incomes that do not exceed 80% of area median
income may borrow up to $70,000.
. Up to $24,999 of the total funds ($40,000 or $70,000) can be used towards home
repair and rehabilitation.
In addition to the NSP funds, the City may allocate additional HOME Investment
Partnership entitlement funds towards down payment assistance for persons at or below
80% AMI towards Down Payment and Closing Cost Assistance of REO (i.e. bank owned)
properties.
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Acquisition/Rehabilitation & Rental for Very Low Income Tenants (Section 2301 (i)(3)(A)(ii))
There is a very low income set aside provision in HERA where at least 25% of the NSP
funds must be utilized for the benefit of families at or below 50% area median income.
The City has exceeded this requirement by identifying 35% or $1,000,000 of the NSP
funding to acquire/rehabilitate single units or multi-family units in partnership with an
organization to provide permanent rental housing. The City will issue a Notice of Funding
Availability (NOFA) to partner with such organizations, including but not limited to:
Community Housing Development Organizations (CHDOs); participating members of the
San Diego Regional Continuum of Care Council; and/or an affordable housing developer.
Pre-Award Costs and Administration
The City may incur pre-award costs in compliance with 24 CFR Part 570.200(h).
Permissible costs incurred as of September 29, 2008 for items such as development of the
Action Plan amendment and other administrative actions necessary to receive the NSP
grant funds from HUD. In addition, post-award cost will be used for Administration and
Management of NSP funds.
C. DEFINITIONS AND DESCRIPTION
Affordable Rents: For the purposes of NSP funds, 'affordable rents" shall be defined using
the LOW HOME Program Rent definition for persons below 50% of area median income,
which includes a breakdown of 30% and 50% of area median income. At no time shall
the rent exceed HUD's Fair Market Rent.
The guidelines used for the determination of affordable rents under the HOME program are
fou nd at hnp://www.hud.gov/offices/cpd/affordablehou5Ing/ progr ams/ho me/
Area Income Limits: The table contains income limits for extremely low, very low, low
and moderate income, as adjusted for family size and other factors adopted and amended
from time to time by the U.S. Department of Housing and Urban Development.
44,250.00 27,650.00 $16,600.00
$50,550.00 $31.600.00 $18,950.00
$56,900.00 $35,550.00 $2l.350.00
$63,200.00 $39,500.00 23.700.00
$68,250.00 $42,650.00 $25,600.00
$73,300.00 $45,800.00 27,500.00
78,350.00 $49,000.00 $29.400.00
$114,200.00 $83.400.00 $52,150.00 $31.300.00
(11 U.s. Department of Housing and Urban Development, effective February 2008
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Blight: California Health & Safety Code Section 33030 defines "blighted area" as one that
is:
1. Predominately urbanized;
2. Underutilized to the extent that is constitutes a serious physical and economic
burden on the community; and
3. Characterized by one or more physical or economic conditions as described and set
forth in Section 33031 to follow
a. This subdivision describes physical conditions that cause blight:
i. Buildings in which it is unsafe or unhealthy for persons to live or work.
These conditions can be caused by serious building code violations,
dilapidation and deterioration, defective design or physical construction,
faulty or inadequate utilities, or other similar factors.
II. Factors that prevent or substantiafly hinder the economically viable use or
capacity of buildings or lots. This condition can be caused by a
substandard design, inadequate size given present standards and market
conditions, lack of parking, or other similar factors.
III. Adjacent or nearby uses that are incompatible with each other and which
prevent the economic development of those parcels or other portions of the
project area.
4. The existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development that are in multiple ownership.
a. This subdivision describes economic conditions that cause blight:
i. Depreciated or stagnant property values or impaired investments, including,
but not necessarily limited to, those properties containing hazardous wastes
that require the use of agency authority as specified in Article 12.5
(commencing with Section 33459).
ii. Abnormally high business vacancies, abnormally low lease rates, high
turnover rates, abandoned buildings, or excessive vacant lots within an area
developed for urban use and served by utilities.
iii. A lack of necessary commercial facilities that are normally found in
neighborhoods, including grocery stores, drug stores, and banks and other
lending institutions.
iv. Residential overcrowding or an excess of bars, liquor stores, or other
businesses that cater exclusively to adults that has led to problems of public
safety and welfare.
v. A high crime rate that constitutes a serious threat to the public safety and
welfare.
Continued Affordability: For homebuyers, the City will use the standards of its HOME
Down Payment and Closing Cost Assistance Program where homebuyers repay the loan
upon transfer, sale or refinancing of the home. Such covenants are recorded against the
property. For rental the City will ensure the entire period of affordability through
monitoring, following the specific HOME monitoring requirements as defined in 24 CFR
Part 92.
Rehabilitation Standards:
For NSP related rehabilitation efforts, the City of Chula Vista will utilize the existing
Community Housing Improvement Program (CHIP) Rehabilitation Standards. The CHIP
Rehabilitation Standards are used to prioritize work items when determining the final scope
of work. Priorities include:
DRAFT 2008/2009 Action Plan Amendment (N5P)
Narrative
Page8of14
8-15
1. First priority is the elimination of California Health/Safety hazards and code
violations. This may include the following major systems or building components:
a. Structural: foundations, footings, chimneys, framing, siding, subfloors, roof
diaphragm, retaining walls, ete.
b. Plumbing: drain, waste, and vent systems, hot and cold water pipes, drainage
systems, plumbing fixtures, bathtubs, sinks, toilets, hot water heaters, ete.
e. Mechanical: heating and air conditioning to include any built-in, floor,
central, wall gas or electric unit.
d. Electrical: safe adequate wiring, service panel/amperage for modern
conveniences, service entrance, receptacles and, interior/exterior lighting.
e. Interior/Exterior building components: floor coverings, ranges/refrigerators,
garbage disposal, kitchen cabinets, counter tops, vanities, drywall, painting,
doors, windows, weatherization, smoke alarms, security bars, hazardous
building construction materials, concrete work and fencing etc.
f. Required Lead-Based Paint remediation.
2. Second priority is the elimination of potential violations. These work items would
include all of the work mentioned above that are not code violations today, but will
become violations at some time in the near future (two years or less). Examples
i ncl ude:
a. A roof covering that has reached its life expectancy, but shows no sign of
leaking.
b. Floor covering that is excessively worn and in a reasonably short period of
time will no longer be effective for the intended use.
e. Kitchen counter tops, appliances, bath vanities or tub surrounds which show
pitted or worn surfaces but are not bad enough to classify as a code violation.
d. Paint that is aged near its useful life expectancy but remains a washable
surface and provides adequate water and weather protection.
3. Third priority is energy and/or water conservation improvements. These
conservation improvements or repairs include insulation, water saving toilets or
other fixture, energy-efficient appl iances, water heaters and xeriscope yard
improvements.
4. Fourth priority is general property improvements. General property improvements
are those items which cannot be classified in the first three categories but by their
inclusion enhance the exterior or interior appearance of the dwelling or occupancy
of the inhabitants. For the most part, general property improvements are limited to
funding sources that allow them. In all cases the work must be justified. "Luxury"
items are not allowed. Some examples of general property improvements are:
a. Dishwashers (dishwashers may be a higher priority depending on circumstances
i.e., medical needs or replacement of an existing non-functioning unit).
b. Upgrading floor covering that may not be a safety or incipient violation.
e. Upgrading of obsolete kitchen cabinets that are in good to fair condition.
Individual rehabilitation programs administered by the City may forbid the
installation or repair of certain items. It is the responsibility of the City CHIP
Committee to know and understand program regulations and make decisions
accordingly. In addition, a Code Enforcement Officer will be on the Committee to
DRAFT 2008/2009 Action Plan Amendment (NSPI
Narrative
Page9of14
8-16
insure that corrective items that are in violation of the City of Chula Vista's building
codes/ordinances as well as the Uniform Building Code, National Electric Code,
Uniform Plumbing Code and the Uniform Housing Code are corrected.
Termite Repairs - a Termite Inspection Report is required and is prepared for every
home by a liCensed inspector. The report should identify any termite or dry rot
damaged wood members in the home as well as whether or not there are any active
termite infestations in the home. Any termite or dry rot damaged wood members in
the home are required to be replaced or repaired due to the health and safety risk
they pose to the structural integrity of the home. Fumigation or other treatments
recommended to eliminate any active termite infestations are required.
Ineli!<ible Items - There are specific items that mayor may not be allowed as
eligible work and are determined by need, circumstances and individual program
parameters. These items include:
1. Room Additions
2. Patio Covers and Slabs (replacement only unless existing conditions can be
documented/justified and authorized by the CHIP Committee)
3. Landscaping (except in the case of xeriscope yard improvements)
4. Garages and Carports
S. Window Coverings
The following items are ineligible under most programs offered by the City:
1. Luxury materials, appliances, etc.
2. Replacement of items in "like new" condition early in to normal life expectancy
3. Mirrored closet doors
4. Greenhouses
5. Animal kennels!cages/runs
6. Swimming pools
7. Saunas/spas/sunken tubs
8. Outdoor fireplaces/barbecues
9. Trash compactors
10. Tennis courts
11. Wet bars
12. Security systems
D. VERY LOW INCOME TARGETING
The City ofChula Vista will allocate $1,000,000 of NSP funds for the purpose of
purchasing and rehabilitating abandoned or foreclosed upon homes or residential
properties for rental housing for individuals or families whose incomes do not exceed 50%
of the San Diego area median income. The amount of NSP funds allocated to this activity
represents 35% of the entire NSP funds, exceeding the required amount by 25%.
E. ACQUISITION AND RELOCATION
HUD requires that grantees indicate if they intend to demolish or convert low- and
moderate-income dwelling units. The City of Chula Vista does not intend to conduct these
activities.
F. PUBLIC PARTICIPATION
HU D requires that a summary of public comments received to the proposed NSP
Substantial Amendment be included in the final document submitted and that a 15-day
DRAFT 2008/2009 Action Plan Amendment (NSP)
Narrative
Page 10 of 14
8-17
public review period be provided. Any comments received and responses to those
comments will be included in the final substantial amendment submitted to HUD on
December 1, 2008.
The City of Chula Vista established a web page dedicated to the NSP to advertise upcoming
meetings and provide general information to the public. A summary of additional
opportunities for public input follows:
1. Public Meetings: The following properly noticed public meetings were held to obtain
public input on the proposed uses for the NSP funds:
. Public Meeting: October 16, 2008
. Public Meeting: November 6, 2008
. Chula Vista Redevelopment Corporation: November 13, 2008
. Housing Advisory Committee: November 13, 2008
. City Council Public Hearing: November 18, 2008
2. Public Review Period: A fifteen-day public comment period was held from November
10 through November 24, 2008. Copies of the draft Action Plan Amendment were
made available to the public at the office of Redevelopment and Housing office as well
as the departmental website.
3. Public Comments Received: (To be included after the end of the public comment
period and final Amendment).
.
G. NSP INFORMATION BY ACTIVITY
The City will utilize NSP funds for Activities 1,2 and 3, as follows:
ACTIVITY NSP-1
1. Activity Name: Partner with organization to acquire and rehabilitate foreclosed or
abandoned properties for purpose of renting to persons at or below 50% AMI.
2. Activity Type: This NSP activity provides for the purchase and rehabilitation of
home and residential properties that have been abandoned or foreclosed upon in
order to rent such homes and properties.
The CDBC eligible activities planned to be undertaken for this program include:
. Acquisition, 24 CFR 570.201 (a)
. Disposition, 24 CFR 570.201 (b)
. Relocation, 24 CFR 570.201 (i)
. Eligible rehabilitation and preservation activities for homes and other residential
properties, 24 CFR 570.202 (a)(1 )(b)(l )(2)(4)(5)(6)(7)(iv)(9)(ii)
3. CDBG National Objective: Very Low Income residents at or below 50% AMI.
4. Activity Description: This NSP activity provides for the purchase and rehabilitation
of residential and multi-family properties that have been abandoned or foreclosed
upon in order to rent such homes and properties to low income families in
accordance with NSP regulations. The City intends to issue a Notice of Funding
Availability (NOFA) to partner not limited to a Community Housing Development
Organization (CHDO) and/or a participating member of the San Diego Regional
Continuum of Care Council to identify and purchase such properties while
leveraging other available funding for rental housing. The purchase price must be
priced at a discount consistent and appraised in accordance with HUD NSP
requirements.
DRAFT 2008/2009 Action Plan Amendment (NSP)
Narrative
Page 11 of 14
8-18
5. Location Description: Program will be city-wide with priority given to the census
tracts containing the highest existing and predicted foreclosure rates, based on data
collected in Exhibits A-E. These have been designated as neighborhoods of high
risk and include census tracts: 12402, 12700, 13303, 13306, 13307, 13418 and
portions of tracts 13308, 13310, and 13311, detailed in Exhibits "G-I" attached.
6. Performance Measures: Number of rental units created, minimum of 4-6.
7. Total Budget: $1,000,000
8. Responsible Organization: City of ChuJa Vista, Redevelopment & Housing; 276
Fourth Avenue, Chula Vista, California 91910; contact: Amanda Mills, Manager
Redevelopment & Housing, (619) 409-5948
9. Projected Start Date: January 1, 2009
10. Projected End Date: January 1, 2013
11 . Specific Activity Requi rements:
For acquisition activities, include:
. Discount rate - Fifteen percent (15%)
For financing activities, include:
. Range of interest rates - 3% deferred, secured by deed of trust
For housing related activities, include:
. Tenure of beneficiaries-rental or homeownership - Rental
. Duration or term of assistance - Minimum fifteen (15) year afford ability period
. A description of how the design of the activity will ensure continued affordability-
Continued affordability ensured by recorded covenants, a minimum 15-year
affordability term
ACTIVITY NSP-2
1. Activity Name: Shared Equity: Down-Payment and Closing Cost Assistance
Program
2. Activity Type: This NSP activity provides financing mechanisms for purchase and
rehabi I itation of f vacant foreclosed homes and residential properties.
The CDBG eligible activities planned to be undertaken for this program include:
. Direct homeownership assistance, 24 CFR 570.201 (n)(1 )(2)(3)(4)(5)
. Eligible rehabilitation and preservation activities for homes and other residential
properties, 24 CFR 570.202 (a)(1 )(b)(1 )(2)(4)(5)(6)(7)(iv)(9)(ii)
. Housing Counseling for those seeking to take part in the program, 24 CFR
570.201 (e)
3. CDBG National Objective: LMMH (Low and Moderate-Income Households)
4. Activity Description: Down Payment and Closing Cost Assistance will be provided
to eligible homebuyers at or below 120% of the area median income, through
homebuyer and housing rehabilitation assistance to stabilize communities within
the City of Chula Vista that have the greatest need as discussed and identified under
.Section A, Areas of Greatest Need. The City plans to use 55 % or $1,547,065 of this
funding as a financing mechanism (Down Payment and Closing Cost Assistance) to
assist persons at or below 120% of area median income to acquire foreclosed or
abandoned residential properties. Priority will be given to first-time homebuyers
that are purchasing within the Targeted Neighborhoods and will closely mirror the
City's existing program guidelines for the Shared Equity: Down Payment and
Closing Cost Assistance Program, by providing gap financing, as follows:
. Homebuyers with household incomes that do not exceed 120% of area median
income may borrow up to $40,000.
DRAFT 2008/2009 Action Plan Amendment (NSP)
Narrative
Page 12 of 14
8-19
. Homebuyers with household incomes that do not exceed 80% of area median
income may borrow. up to $70,000.
. Up to $24,999 of the total funds ($40,000 or $70,000) can be used towards home
repair and rehabilitation.
The Share Equity Down Payment and Closing Cost Assistance Program (DCCA)
provides assistance to el igible homebuyers through homebuyer and housing
rehabilitation assistance to stabilize communities within the City of Chula Vista that
have the greatest need as discussed and identified on pages 1-3. Specifically, the
DCCA program has been designed to meet the needs of homebuyers with very low,
low, and moderate incomes who are unable to qualify for a mortgage and/or obtain the
necessary down payment without gap financing. The home can be a single family
residence, condominium, or townhouse dwelling. The home must be vacant and
foreclosed upon or abandoned pursuant to NSP program guidelines, and must be used
as the principal residence of the homebuyer. Priority is given to eligible homebuyers
that are purchasing homes in specific target areas within the City Of Chula Vista.
This program will provide secured loans as follows:
a. The homebuyer's purchase price must be at least 5% (pursuant to HU D's NSP
program guidelines) below the current market appraised value of the property
pursuant to an appraisal dated within 60 days of the offer to purchase. The
appraisal must conform to the requirements of 49 CFR 24.103. All eligible
homebuyers must attend and complete at least 8 hours of homebuyer
counseling from a HUD-approved housing counseling agency before obtaining
a DCCA program loan. Priority will be provided to eligible fir~t time
homebuyers with household incomes that do not exceed middle-income (120%
of area median income). The value of the home may not exceed the City's
HOME maximum purchase price. All loans will have no interest and will be
secured by a Second Deed of Trust that is second in priority after the first Deed
of Trust. All repayments to the City are deferred until sale, transfer, refinancing
or fu II repayment of the first mortgage. I n order to meet the N S P statutory
deadlines to expedite commitment and expenditure of program funds, the City's
existing DCCA program will be updated to reflect the NSP program
requirements. The City DCCA program will include affirmative marketing,
environmental clearance, compliance with the City's rehabilitation
requirements and inspedion standards, and lead-based paint requirements
found in 24 CFR Part 35. [The City's NSP DCCA Program has also been
designed to provide the homebuyers with housing rehabilitation assistance on
an as needed basis. Eligible homebuyers may receive up to $24,999 for
rehabilitation. However, this will reduce the amount available for total DCCA
Assistance ($70,000 or $40,000)].
b. After completion of the purchase, the rehabilitation program assistance must be
used to make the home to a decent, safe, and habitable condition in accordance
with the DCCA property standards.
5. location Description: Program will be city-wide with priority given to the census
tracts containing the highest existing and predicted foreclosure rates, based on data
collected in Exhibits A-E. These have been designated as neighborhoods of high
risk and include census tracts: 12402, 12700, 13303, 13306, 13307, 13418 and
portions of tracts 13308, 13310, and 13311, detailed in Exhibits "G-I" attached.
6. Performance Measures: Assist homebuyers purchase and rehabilitate 22-38
properties, dependant on levels of gap financing assis.tance.
DRAFT 2008/2009 Action Plan Amendment (NSP)
Narrative
Page 1 3 of 14
8-20
7. Total Budget: $1,547,065
8. Responsible Organization: City of Chula Vista, Redevelopment & Housing; 276
Fourth Avenue, Chula Vista, California 91910; contact: Amanda Mills, Manager
Redevelopment & Housing, (619) 409-5948
9. Projected Start Date: January 1, 2009
10. Projected End Date: january 1,2013
11. Specific Activity Requirements:
For acquisition activities, include:
. Discount rate - Minimum of 5% and/or consistent with HUD NSP
requirements
For financing activities, include:
. Range of interest rates - Zero percent (0%) interest deferred payment loan.
Housing related activities:
. Tenure of beneficiaries-rental or homeownership - Homeownership
. Duration or term of assistance - Minimum fifteen (15) year affordability period
. A description of how the design of the activity will ensure continued
affordabil ity - Continued affordability of the recapture option ensured by
recorded covenants.
ACTIVITY NSP-3
1. Activity Name: Administration of the Neighborhood and Stabilization Program
2. Activity Type: Planning and Administration (CDBG 24 CFR570.206)
3. CDBG National Objective: Planning and administration activities are exempt from
national objective requirement.
4. Activity Description: Administration funds will.be utilized for staff costs associated
with the management and administration of Chula Vista's NSP program, including
planning, regulatory compliance (i.e underwriting loans, monitoring, inspections,
etc.), contract administration, and fiscal management.
5. location Description: The City of Chula Vista Department of Redevelopment and
Housing will be the lead on this program. 276 Fourth Avenue, Chula Vista, CA
91910.
6. Performance Measures: Administration activities are exempt from this requirement.
7. Total Budget: $283,000
8. Responsible Organization: City of Chula Vista, Redevelopment and Housing will
be the lead on this program with the following persons as administrators:
o Angelica Davis, Project Coordinator
(619) 691-5036, adavis@ci.chula-vista.ca.us
o Jose Dorado, Project Coordinator
(619) 476-5375, jdorado@ci.chula-vista.ca.us
o Stacey Kurz, Senior Project Coordinator
(619) 585-5609, skurz@ci.chula-vista.ca.us
9. Projected Start Date: january 1, 2009
10. Projected End Date: january 1, 2013
11. Specific Activity Requirements: Not Applicable
DRAFT 2008/2009 Action Plan Amendment INSP)
Narrative
Page 14 of 14
8-21
EXHIBIT A
Low- and Moderate-Income Eligible Census Tracts
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DRAFT 2008/2009 Action Plan Amendment (NSP)
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8-22
EXHIBIT B
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DRAFT 2008/2009 Action Plan Amendment (NSP)
ExhibitB
8-23
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EXHIBIT D
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DRAFT 2008/2009 Action Plan Amendment (NSP)
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EXHIBIT G
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Exhibit G
8-28
EXHIBIT H
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DRAFT 2008/2009 Adion Plan Amendment (NSP)
Exhibit H
8-29
EXHIBIT I
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DRAFT 2008/2009 Adion Plan Amendment (NSP)
Exhibit I
8-30
Certifications
(1) Affirmatively furthering fair housing. The jurisdiction will affirmatively further fair
housing, which means that it will conduct an analysis to identify impediments to fair
housing choice within the jurisdiction, take appropriate actions to overcome the effects of
any impediments identified through that analysis, and maintain records reflecting the
analysis and actions in this regard.
(2) Anti-lobbying. The jurisdiction will comply with restrictions on lobbying required by
24 CFR part 87, together with disclosure forms, if required by that part.
(3) Authority of Jurisdiction. The jurisdiction possesses the legal authority to carry out the
programs for which it is seeking funding, in accordance with applicable HUD regulations
and other program requirements.
(4) Consistency with Plan. The housing activities to be undertaken with NSP funds are
consistent with its consolidated plan, which means that NSP funds will be used to meet the
congressionally identified needs of abandoned and foreclosed homes in the targeted area
set forth in the grantee's substantial amendment.
(5) Acquisition and relocation. The jurisdiction will comply with the acquisition and
relocation requirements of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (42 U.s.e. 4601), and implementing
regulations at 49 CFR part 24, except as those provisions are modified by the Notice for the
NSP program published by HUD.
(6) Section 3. The jurisdiction will comply with section 3 of the Housing and Urban
Development Act of 1968 (12 U.s.e. 1701 u), arid implementing regulations at 24 CFR part
135.
(7) Citizen Participation. The jurisdiction is in full compliance and following a detailed
citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or
91.115, as modified by NSP requirements.
(8) Following Plan. The jurisdiction is following a current consolidated plan (or
Comprehensive Housing Affordability Strategy) that has been approved by HUD.
(9) Use of funds in 18 months. The jurisdiction will comply with Title III of Division B of
the Housing and Economic Recovery Act of 2008 by using, as defined in the NSP Notice,
all of its grant funds within 18 months of receipt of the grant.
(10) Use NSP funds s 120 of AMI. The jurisdiction will comply with the requirement that
all of the NSP funds made available to it will be used with respect to individuals and
families whose incomes do not exceed 120 percent of area median income.
(11) Assessments. The jurisdiction will not attempt to recover any capital costs of public
improvements assisted with CDBC funds, including Section 108 loan guaranteed funds, by
assessing any amount against properties owned and occupied by persons of low- and
moderate-income, including any fee charged or assessment made as a condition of
200812009 Action Plan Amendment (NSP)
Certifications
Page 1 of 2
8-31
obtaining access to such public improvements. However, if NSP funds are used to pay the
proportion of a fee or assessment attributable to the capital costs of public improvements
(assisted in part with NSP funds) financed from other revenue sources, an assessment or
charge may be made against the property with respect to the public improvements financed
by a source other than COBC funds. In addition, with respect to properties owned and
occupied by moderate-income (but not low-income) families, an assessment or charge may
be made against the property with respect to the public improvements financed by a source
other than NSP funds if the jurisdiction certifies that it lacks NSP or COBG funds to cover
the assessment.
(12) Excessive Force. The jurisdiction certifies that it has adopted and is enforcing: (1) a
policy prohibiting the use of excessive force by law enforcement agencies within its
jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and
(2) a policy of enforcing applicable State and local laws against physically barring entrance
to or exit from, a facility or location that is the subject of such non-violent civil rights
demonstrations within its jurisdiction.
(13) Compliance with anti-discrimination laws. The NSP grant will be conducted and
administered in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.c. 2000d),
the Fair Housing Act (42 U.S.c. 3601-3619), and implementing regulations.
(14) Compliance with lead-based paint procedures. The activities concerning lead-based
paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title.
(15) Compliance with laws. The jurisdiction will comply with applicable laws.
Scott Tulloch, Acting City Manager
Date
2008/2009 Action Plan Amendment (NSP)
Certifications
Page 2 of 2
8-32
CHECKLIST
For the purposes of expediting review, HUD asks that applicants submit the following
checklist along with the NSP Substantial Amendment and SF-424.
Jurisdiction(s):
Lead Agency
Jurisdiction Web Address:
(URL where NSP Substantial Amendment
materials are posted)
Contents of an NSP Action Plan Substantial Amendment
NSP Contact Person:
Address:
Telephone:
Fax:
Email:
The elements in the substantial amendment required for the Neighborhood Stabilization
Program are:
A. Areas of Greatest Need
Does the submission include summary needs data identifying the geographic areas of
greatest need in the grantee's jurisdiction?
YeslSJ NoD. Verification found on page~.
B. Distribution and Uses of Funds
Does the submission contain a narrative describing how the distribution and uses of the
grantee's NSP funds will meet the requirements of Section 2301 (c)(2) of HERA that funds be
distributed to the areas of greatest need, including those with the greatest percentage of
home foreclosures, with the highest percentage of homes financed by a subprime mortgage
related loan, and identified by the grantee as likely to face a significant rise in the rate of
home foreclosures?
YeslSJ NoD Verification found on page~.
Note: The grantee's narrative must address the three stipulated need categories in the NSP
statute, but the grantee may also consider other need categories.
C. Definitions and Descriptions
For the purposes of the NSP, do the narratives include:
. a definition of "blighted struCture" in the context of state or local law,
Yes ISJ NoDVerification found on page 8
. a definition of "affordable rents:
YeslSJ NoD Verification found on page -Z-.
. a description of how the grantee will ensure continued affordability for NSP assisted
housing,
YeslSJ NoD Verification found on page--L.
. a description of housing rehabilitation standards that will apply to NSP assisted
activities?
YeslSJ NoD Verification found on page~.
2008/2009 Action Plan Amendment (NSP)
Checklist
Page 1 of 2
8-33
D. Information By Activity
Does the submission contain information by activity describing how the grantee will use the funds,
identifying:
Activity No.1
. eligible use of funds under NSP,
Yesi:2J NoD Verification found on page ~.
. correlated eligible activity under CDBG,
Yesi:2J NoD Verification found on page ~.
. the areas of greatest need addressed by the activity or activities,
Yesi:2J NoD Verification found on page 11
. exp~cted benefit to income-qualified persons or households or areas,
Yesi:2J NoD Verification found on page ~.
. appropriate performance measures for the activity,
Yesi:2J NoD Verification found on page~.
. amount of funds budgeted for the activity,
Yesi:2J NoD Verification found on page~.
. the name, location and contact information for the entity that will carry out the activity,
Yesi:2J NoD Verification foUnd on page~.
. expected start and end dates of the activity?
Yesi:2J NoD Verification found on page.J1..
Activity No.2
. eligible use of funds under NSP,
Yesi:2J NoD Verification found on page ~.
. correlated eligible activity under CDBG,
Yesi:2J NoD Verification found on page ~.
. the areas of greatest need addressed by the activity or activities,
Yesi:2J NoD Verification found on page 12 .
. expected benefit to income-qualified persons or households or areas,
Yesi:2J NoD Verification found on page ~.
. appropriate performance measures for the activity,
Yesi:2J NoD Verification found on page --.li.
. amount of funds budgeted for the activity,
Yesi:2J NoD Verification found on page~.
. the name, location and contact information for the entity that will carry out the activity,
Yesi:2J NoD Verification found on page~.
. expected start and end dates of the activity?
Yesi:2J NoD Verification found on page ~.
Activity No.3
. eligible use of funds under NSP,
Yesi:2J NoD Verification found on page~.
. correlated eligible activity under CDBG,
Yesi:2J NoD Verification found on page~.
. the areas of greatest need addressed by the activity or activities,
Yesi:2J . NoD Verification found on page~.
2008/2009 Action Plan Amendment (NSP)
Checklist
Page 2 of 5
8-34
. expected benefit to income-qualified persons or households or areas,
Yes[l;l NoD Verification found on page~.
. appropriate performance measures for the activity,
Yes[l;l NoD Verification found on page~.
. amount of funds budgeted for the activity,
Yes[l;l NoD Verification found on page~.
. the nameL location and .contact information for the entity that will carry out the activity,
Yes[l;l NoD Verification found on page ~.
. expected start and end dates of the activity?
Yes[l;l NoD Verification found on page~.
E. Specific Activity Requirements
Does each activity narrative describe the general terms under which assistance will be
provided, including:
If the activity includes acquisition of real property,
. the discount required for acquisition of foreclosed upon properties,
Yes[l;l NoD Verification found on page 11, 12 and 16
If the activi
Yes[l;l
rovides financin ,
No Verification found on page~.
If the activity provides housing,
. duration or term of assistance,
Yes[gJ NoD Verification found on page 14 and 16
. tenure of beneficiaries (e.g., rental or homeownership),
Yes[gJ NoD Verification found on page 14 and 16
. does it ensure continued affordability?
Yes[l;l NoD Verification found on page 8, 14 and 16
. does the applicant indicate which activities will count toward the statutory
requirement that at least 25% of funds must be used to purchase and redevelop
abandoned or foreclosed upon homes or residential properties for housing
individuals and families whose incomes do not exceed 50% of area median
income?
. Yes[gJ NoD Verification found on page 10
F. low Income targeting
. Has the grantee described how it will meet the statutory requirement that at least
25 % of funds must be used to purchase and redevelop abandoned or foreclosed
upon homes or residential properties for housing individuals and families whose
incomes do not exceed 50% of area median income?
Yes[l;l NoD Verification found on page 10
. Has the grantee identified how the estimated amount of funds appropriated or
otherwise made available will be used to purchase and redevelop abandoned or
2008/2009 Action Plan Amendment INSP)
Checklist
Page 3 of 5
8-35
foreclosed upon homes or residential properties for housing individuals or families
whose incomes do not exceed 50% of area median income?
Yes!l;J NoD Verification found on page 10
Amount budgeted $ $1,000,000
G. Demolishment or Conversion of low- And Moderate-Income Units
Does grantee plan to demolish or convert any low- and moderate-income dwelling units?
YesD No!l;J (If no, continue to next heading)
Verification found on page
Does the substantial amendment include:
H. The number of low- and moderate-income dwelling units-i.e., :s 80% of area median
income-reasonably expected to be demolished or converted as a direct result of NSP-
assisted activities?
YesD No!l;J. Verification found on page _n/a_.
I. The number of NSP affordable housing units made available to low-, moderate-, and
middle-income households-i.e., :s 120% of area median income-reasonably
expected to be produced by activity and income level as provided for in DRGR, by
each NSP activity providing such housing (including a proposed time schedule for
commencement and completion)?
Yes!l;J NoD Verification found on page 12 and 13
J. The number of dwelling units reasonably expected to be made available for households
whose income does not exceed 50 percent of area median income?
Yes!l;J NoD Verification found on page 10
H. Public Comment Period
Was the proposed action plan amendment published via the grantee jurisdiction's usual
methods and on the Internet for no less than 15 calendar days of public comment?
Yes!l;J NoD Verification found on page_.
Is there a summary of citizen comments included in the final amendment?
Yes!l;J NoD Verification found on page_.
I. Website Publication
The following Documents are available on the grantee's website:
. SF 424 Yes!l;J NoD.
. Proposed NSP Substantial Amendment Yes!l;J NoD.
. Final NSP Substantial Amendment Yes!l;J NoD.
. Subsequent NSP Amendments Yes!l;J NoD.
Website URl:
hUp:/ /www.chulavistaca.aov/Citv Services/Development Services/RedevHousina/Housi na/Hausi
naProarams/NSP.asp
2008/2009 Action Plan Amendment (NSP)
Checklist
Page 4 of 5
8-36
K. Certifications
The following certifications are complete and accurate:
(1) Affirmatively furthering fair housing
(2) Anti-lobbying
(3) Authority of Jurisdiction
(4) Consistency with Plan
(5) Acquisition and relocation
(6) Section 3
(7) Citizen Participation
(8) Following Plan
(9) Use offunds in 18 months
(10) Use NSP funds" 120 of AMI
(11) No recovery of capital costs thru special assessments
(12) Excessive Force
(13) Compliance with anti-discrimination laws
(14) Compliance with lead-based paint procedures
(15) Compliance with laws
YesC8J
YesC8J
YescgJ
YesC8J
YesC8J
YescgJ
YescgJ
YesC8J
YesC8J
YescgJ
YesC8J
YesC8J
YescgJ
YescgJ
YesC8J
NoD
NoD
NoD
NoD
NoD
NoD
NoD
NoD
NoD
NoD
NoD
NoD
NoD
NoD
NoD
2008/2009 Action Plan Amendment INSPI
Checklist
Page 5 of 5
8-37
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA A.,\J!ENDING THE FISCAL YEAR 2008/2009
ANNUAL ACTION PLAN, ALLOCATING $2,830,072 OF
COMMUNITY DEVELOPMENT BLOCK GRAi"l"T
NEIGHBORHOOD STABILIZATION PROGRAM (NSP)
FUNDS TO BE UTILIZED IN AREAS OF GREATEST NEED
INCLUDING THE NORTHWEST TARGET NEIGHBORHOOD
AND AUTHORIZING THE SUBMITTAL OF THE
AMENDMENT OF THE ANNUAL ACTION PLAN TO THE
UNITED STATES DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
WHEREAS, on May 6, 2008, pursuant to Resolution No. 2008-121, the City Council
approved the Fiscal Year 2008/2009 Annual Action Plan for the Community Development Block
Grant (CDBG), the HOME Investment Partnership (HOME), and the Emergency Shelter Orant
(ESG) Federal Grant Programs; and
WHEREAS, in September 2008, the United States Department of Housing and Urban
Development (HUD) notified the City that the City is eligible to receive approximately $2.8
million in one-time CDBO funds through the new Neighborhood Stabilization Program (NSP) in
addition to its arumal CDBG entitlement; and
WHEREAS, staff has identified areas of greatest need for the use of these funds within
the City and these target neighborhoods include portions of northwest and southwest Chula
Vista, Eastlake, and Otay Ranch communities; and
WHEREAS, in order to receive the NSP funds, the City must submit an amendment to
the Annual Action Plan to HUD by December 1,2008; and
WHEREAS, staff wishes to amend the Fiscal Year 2008/2009 Action Plan to allocate this
one-time distribution of special CDBG NSP funds in the amount of $2,830,072 to a new project
entitled "Neighborhood Stabilization Program".
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista
as follows:
1. That it amends the Fiscal Year 2008/2009 Annual Action Plan and allocates $2,830,072
of Community Development Block Grant (CDBO) Neighborhood Stabilization Program
(NSP) funds to be utilized in areas of greatest need including the Northwest Target
Neighborhood to a new project entitled "Neighborhood Stabilization Program".
2. That it authorizes the submittal of the amendment to the Annual Action Plan to the
United States Department of Housing and Urban Development (HUD).
8-38
Resolution
Page 2 of2
3. That it authorizes the City Manager to execute any documents necessary to submit the
proposed amendment to the Annual Action Plan to HUD and to receive the Community
Development Block Grant (CDBG) Neighborhood Stabilization Program (NSP) funds.
Presented by
Approved as to form by
~o-- tL ~~
Bart Miesfeld
Interim City Attorney
Eric Crockett
Assistant Director of Redevelopment and
Housing
.I:\Attllrney\F1NAL RESOS\2008\11 18 08\Actioll Plan Neighborho~~~~ization Program Amendment Reso A Northwest II-25-Q8.doc
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE FISCAL YEAR 2008/2009
ANNUAL ACTION PLAN, ALLOCATING $2,830,072 OF
COMMUNITY DEVELOPMENT BLOCK GRANT
NEIGHBORHOOD STABILIZATION PROGRAM (NSP)
FUNDS TO BE UTILIZED IN AREAS OF GREATEST NEED
INCLUDING THE SOUTHWEST TARGET NEIGHBORHOOD
AND AUTHORIZING THE SUBMITTAL OF THE
AMENDMENT OF THE ANNUAL ACTION PLAN TO THE
UNITED STATES DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
WHEREAS, on May 6, 2008, pursuant to Resolution No. 2008-121, the City Council
approved the Fiscal Year 2008/2009 A.1mual Action Plan for the Community Development Block
Grant (CDBG), the HOME Investment Partnership (HOME), and the Emergency Shelter Grant
(ESG) Federal Grant Programs; and
WHEREAS, in September 2008, the United States Department of Housing and Urban
Development (HUD) notified the City that the City is eligible to receive approximately $2.8
million in one-time CDBG funds through the new Neighborhood Stabilization Program (NSP) in
addition to its annual CDBG entitlement; and
WHEREAS, staff has identified areas of greatest need for the use of these funds within
the City and these target neighborhoods include portions of northwest and southwest Chula
Vista, Eastlake, and Otay Ranch communities; and
WHEREAS, in order to receive the NSP funds, the City must submit an amendment to
the Annual Action Plan to HUD by December 1,2008; and
WHEREAS, staff wishes to amend the Fiscal Year 2008/2009 Action Plan to allocate this
one-time distribution of special CDBG NSP funds in the amount of $2,830,072 to a new project
entitled "Neighborhood Stabilization Program".
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista
as follows: .
l. That it amends the Fiscal Year 2008/2009 A1mual Action Plan and allocates $2,830,072
of Community Development Block Grant (CDBG) Neighborhood Stabilization Program
(NSP) funds to be utilized in areas of greatest need including the Southwest Target
Neighborhood to a new project entitled "Neighborhood Stabilization Program".
2. That it authorizes the submittal of the amendment to the A1mual Action Plan to the
United States Department of Housing and Urban Development (HUD).
8-40
Resolution
Page 2 of2
3. That it authorizes the City Manager to execute any documents necessary to submit the
proposed amendment to the Annual Action Plan to HUD and to receive the Community
Development Block Grant (CDBG) Neighborhood Stabilization Program (NSP) funds.
Presented by
Approved as to form by
JL-.~~~
Bart Miesfeld
Interim City Attorney
Eric Crockett
Assistant Director of Redevelopment and
Housing
.I:\f\ltnl11ey\FINAL RESQS\2008\! 1 18 08\Actiol1 Plan NejghbOrho~~tt~izatiol1 Program Amendment Reso B Southwestll-25-08.doc
.
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE FISCAL YEAR 2008/2009
ANNUAL ACTION PLAN, ALLOCATING $2,830,072 OF
COMMUNITY DEVELOPMENT BLOCK GRANT
NEIGHBORHOOD STABILIZATION PROGRAM (NSP)
FUNDS TO BE UTILIZED IN AREAS OF GREATEST NEED
INCLUDING THE EAST TARGET NEIGHBORHOOD AND
AUTHORIZING THE SUBMITTAL OF THE AMENDMENT
OF THE ANNUAL ACTION PLAN TO THE UNITED STATES
DEPARTMENT OF HOUSING A..ND URBAN DEVELOPMENT
WHEREAS, on May 6, 2008, pursuant to Resolution No. 2008-121, the City Council
approved the Fiscal Year 2008/2009 Annual Action Plan for the Community Development Block
Grant (CDBG), the HOME Investment Partnership (HOME), and the Emergency Shelter Grant
(ESG) Federal Grant Programs; and
WHEREAS, in September 2008, the United States Department of Housing and Urban
Development (HUD) notified the City that the City is eligible to receive approximately $2.8
million in one-time CDBG funds through the new Neighborhood Stabilization Program (NSP) in
addition to its annual CDBG entitlement; and
WHEREAS, staff has identified areas of greatest need for the use of these funds within
the City and these target neighborhoods include portions of northwest and southwest Chula
Vista, Eastlake, and Otay Ranch communities; and
WHEREAS, in order to receive the NSP funds, the City must submit an amendment to
the Annual Action Plan to HUD by December 1, 2008; and
WHEREAS, staff wishes to amend the Fiscal Year 2008/2009 Action Plan to allocate this
one-time distribution of special CDBG NSP funds in the amount of $2,830,072 to a new project
entitled "Neighborhood Stabilization Program".
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
as follows:
1. That it amends the Fiscal Year 2008/2009 Annual Action Plan and allocates $2,830,072
of Community Development Block Grant (CDBG) Neighborhood Stabilization Program
(NSP) funds to be utilized in areas of greatest need including the East Target
Neighborhood to a new project entitled "Neighborhood Stabilization Program".
2. That it authorizes the submittal of the amendment to the Annual Action Plan to the
United States Department of Housing and Urban Development (HUD).
8-42
Resolution
Page 2 of2
3. That it authorizes the City Manager to execute any documents necessary to submit the
proposed amendment to the Annual Action Plan to HUD and to receive the Community
Development Block Grant (CDBG) Neighborhood Stabilization Program (NSP) funds.
Presented by
Approved as to form by
Eric Crockett
Assistant Director of Redevelopment and
Housing
--I~~ a~ J=o
Bart Miesfeld -
Interim City Attorney
J:\Attlll11ey\FINAL RESOS\2008\11 18 08\Action Plun Neighborho~2tt~izatiol1 Program Amendment Reso C East 11-25-08.doc
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ALLOCATING $452,936 OF HOME
INVESTMENT PARTNERSHIIP ACT (HOME) FUNDS TO
THE PILOT HOMEOWNERS HIP PROGRAM FOR REAL
ESTATE OWNED PROPERTIES
WHEREAS, on April 16,2002, pursuant to Resolution No. 2002-118, the City Council
approved a First-Time Homebuyer Downpayment and Closing Cost Assistance (DCCA)
Program to assist low-income home buyers; and
WHEREAS, the City and Community Housing Works have entered into an agreement for
the management of the DCCA program; and
WHEREAS, Community Housing Works offered an innovative pilot program that would
provide an incentive for low-income families wishing to enter the homeownership market to
purchase abandoned foreclosed property; and
WHEREAS, on June 17, 2008, the City Council adopted Resolution No. 2008-158
establishing a new non-CIP project for this pilot homeownership program for real estate owned
properties and appropriating $300,000 of available HOME Investment Partnership Act funds to
that proj ect; and
WHEREAS, staff wishes to allocate $452,936 in additional HOME Investment
Partnership (HOME) funds to that pilot homeownership program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista
that it allocates $452,936 of available HOME Investment Partnership (HOME) funds to the pilot
homeownership program for real estate owned properties.
Eric Crockett
Assistant Director of Redevelopment and
Housing
Approved as to form by
-.~(1 ~
Bart Miesfeld
Interim City Attorney
~.
()
Presented by
8-44