HomeMy WebLinkAboutAgenda Statement 1979/10/16 Item 16
1
~.-
CITY OF CHULA VISTA
COUNCIL AGENDA STATEMENT
Item No. 16
For meeting of 10/16/79
ITEM TITLE
Approving the Submittal of Application to
Resolution 7~/~ HCD for Participation in the Deferred
Payment Rehabilitation Loan Program
Community Development Direct~
SUBMITTED BY
ITEM EXPLANATION
(4/5TH'S VOTE REQUIRED YES NO~)
On July 17, 1979, CHFA approved the City's application for participation in the
Home Ownership and Home Improvement Loan Program in Neighborhood Preservation Areas.
As a result of this action the City is eligible for and has been invited by the State
to apply for a similar program entitled the Deferred Payment Rehabil itation Loan
Program (SB966). The loan application is attached as Exhibit "A".
...
Program Operations
In the City's existing CHIP program, the City grants deferred loans to the handicapped
and elderly utilizing Block Grant funds. SB966 funds work in a similar fashion.
Owner-occupants may qualify for a deferred loan to meet rehabilitation standards if
the monthly payments of a subsidized loan would exceed the owner's ability to pay.
Owners of rental property may obtain a SB966 deferred loan if other loans woul d cause
increases in monthly debt service resulting in either rent increases causing displace-
ment of low-income persons or economic infeasibility to continue to accept rent sub-
sidies available. Rental owners must then agree to rent to a certain number of low-
income tenants during the term of the loan.
For elderly owner-occupants, the loan is repaid upon sale or transfer. For others,
it is repaid at the end of five years or upon sale or transfer, whichever occurs
first. The loan may be extended for an additional five-year period if the owner is
unable to refinance. All of the loans bear 3% interest per annum on the original
loan amount.
Funds are also available to agencies for code enforcement where property owners
not made necessary repairs after a final notice. Liens would be placed against
properties, and when local agencies are repaid, they would repay the State.
AP:as
have
such
Resolution-L.
EXHIBITS
Ordinance_
Agreement_
Pl at_
Notification List___
Other Application
ENVIRONMENTAL DOCUMENT: Attached___ Submitted on
FINANCIAL IMPACT
Cost to the City will be minimal. Staff time will not be substantial since similar
programs are already in operation utilizing Block Grant and California Housing
Finance Agency funds. The City is requesting an amount of $64,000. However, this
is a competitive grant and the amount approved by the State may be different.
STAFF RECOMMENDATION
Adopt resolution. If application is approved, staff will bring an agreement with
HCD before Council in December. Program would be implemented after signing of the
a greemen t.
BOARD/COMMISSION RECOMMENDATION
,_ 'Ii<-
COUNCIL ACTION
" ('. '.; j'U"rn ia
......,........(.,.0 .I
q.<tIC;-
D:'itcd I~-/~ .2J
Form A-113 (Rev. 5/77)