HomeMy WebLinkAboutAgenda Statement 1980/10/07 Item 12a, 12b Reso. 10286
COUNCIL AGENDA STATEMENT
Item '12a, l2b
SUBMITTED BY:
Community
Meeting Date 10/7/80
Approving Agreement with the California Housing
Finance Agency for Home Ownership and Home
Improvement Loan Program
Approving Locality and Lender Allocation Assignment
Agreements with Anaheim Saving,c; & Loan A..';sociation
and Mission Bay Mortgage Company
Development Directo~ (4/5ths Vote: Yes
No~)
ITEM TITLE:
Resolution ~;,f'f' a)
~l V
Rcsolution I/)J f" b)
During 1979-80, the City participated in the Home Ownership and Home Improvement (HOHI)
Program which is a state funded, low-interest loan program for the construction, pur-
chase, and/or rehabilitation of homes and apartments. A total of $2,200,000 was avail-
able to Chula Vista in the previous allocation, and $700,000 is available in this 1980-
81 allocation. Therefore, it is my
RECOMMENDATION: That the City Council
1. Adopt the resolution approving an agreement with CHFA.
2. Adopt the resolution approving agreements with two lending companies.
BOARDS/COMMISSION RECOMMENDATION: Not applicable.
DISCUSSION:
The City of CilUla Vista first applied for this program in April 1979 and it began the
program in October 1979 with the allocation of $2,200,000 to the City. This amount
was distributed to four San Diego lenders to make the low-interest loans to qualified
buyers. In the 1979-80 program, the loans were for purchase v/ith rehabilitation, re-
finance with rehabilitation, construction loans, purchase of new construction, and
purchase of existing housing.
The new program allows loans for only purchase with rehabilitation, refinance with
rehabilitation, and construction loans. The loans are ~vailable anywhere in the City
to low and moderate-income households. but half of the loans must be in the Slock
Grant rehabilitation neighborhoods. The lending institution is res~onsible for t~e
administration of the entire program, \tJith the exception of equal of)portunit~' certi-
fication, rent lirlitations compliance, and relocation in the case of rental units.
These functions are currently handled by the City's Housing Rehabilitation Adminis-
trator for the City1s CHIP prograf11.
The California Housing Finance Agency (CHFA) will sell bonds in October to finance
this second round of allocation to eligible cities. This round is smaller due to
financial conditions in the bond markets.
In this round, the City may allocate the funds to lenders of its choosing who apply
to the City. Three lenders have so applied: Anaheim Savings, Mission Bay Mortgage,
and San Diego Federal Savings. San Diego Federal is a new lender/applicant to the
City. .':\.naheim Savings and Mission Bay Mortgage participated with Chula Vista in the
first round of tile HOHI program. Due to their experience and their excellent per-
Continued
AKP: as 10 z ~ ~
Form A-113 (Rev. 11/79)
Page 2, Item 12a, 12b
Meeting Date
10/7/80
fonnance in utilizing their previous allocations, it has been recommended that
these two lenders split the $700,000 allocation. It is felt that dividing the
$700,000 among more than two lenders would be too confining to the individual
lenders and would diminish their program enthusiasm.
FINANCIAL IMPACT:
No financial impact; small amount of staff time for administration.
AKP:as
by U);? c: !
(~~.; '_; IJ \i i:2 ..:.,
/')~1'" FD
/ D~~~0 ,