HomeMy WebLinkAboutAgenda Statement 1988/05/24 Item 15COUNCIL AGENDA STATEMENT
• Item 15
Meeting Date 5/24/88
ITEM TITLE: Report: Application for Rental Rehabilitation Program funds
for FY 1988-89
Resolution~~~~ Approving Rental Rehabilitation Program
description and lated documents, and authorizing submittal
to HUD
SUBMITTED BY: Community Development Director
REVIEWED BY: City Manager ~~]~ ~~ (4/5ths Vote: Yes No X )
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The City is participating in the HUD Rental Rehabilitation Program for FY
1987-88, having been allocated $78,000. Our allocation for FY 1988-89 is
$107,000. To receive these funds we must submit an application to HUD.
RECOMMENDATION: That Council approve the resolution approving the Rental
Rehabilitation Program and documents for FY 1988-89, and authorizing submittal
to HUD.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
• DISCUSSION:
The Rental Rehabilitation Program of the 1983 Housing and Urban-Rural Recovery
Act is designed to increase the supply of standard housing rental units
affordable to lower-income families. The program uses a dual approach: it
provides grants to localities for rehabilitation assistance to private
property owners of substandard multi-family units occupied by lower-income
families; and it provides rental subsidies through the local housing authority
to the low-income tenants of those rehabilitated units to assure housing
affordability. The provision of the rental subsidies to the units' tenants
avoids those frequent circumstances where debt service incurred by property
owners is passed on to the tenants in higher rents to the degree that the
tenant's rents are no longer affordable.
The Rental Rehabilitation Program's creation reflects the recent federal
emphasis on improving and preserving the nation's existing housing stock
rather than underwriting new housing construction. The program also responds
to the Federal trend towards local determination. After establishing basic
benefit and management requirements, the enabling act allows broad
opportunities for local program design and flexibility.
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Page 2, Item 15
• Meeting Date 5/24 88
Our allocation this year is $107,000. Last year we received $78,000. The
amount of funds allocated to each jurisdiction is based on a formula which
considers the following local factors: the number of low-income renter
households, the number of rental units built prior to 1940, and the number of
rental units with overcrowding, high rent costs, or incomplete kitchen
facilities or incomplete plumbing.
The attached program description which has previously been approved by Council
has been updated to incorporate information on our recent housing
rehabilitation activities and qualifications (Sections I, XVI).
FISCAL IMPACT: No general fund monies would be involved in the recommended
action. Program expenses would be provided by the HUD grant.
WPC 3589H
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the City Council of
Chula Vista, Califgrnia
Dated
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