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HomeMy WebLinkAboutAgenda Statement 1979/07/24 Item 23, 23a Reso 9696CITY OF CHULA VISTA COUNCIL AGENDA STATEMENT Item No. 23,23a For meeting of 7/24/79 / i Resolution y(Dl+o Authorizing transfer of Community Development Block Grant Funds ITEM TITLE Resolution 9~~Ja) Approving an Agreement with San Diego County Housing Authority for Services Relative to Low-Rent Public Housing Program ~n SUBMITTED BY Community Development Director , t~ ~~` 4 :J ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES NO X ) Last September, the City authorized the County Housing Authority to submit an application for 100 units of low-rent public housing for placement in the City of Chula Vista. During the interim months, the County prepared and submitted the application which HUD reviewed and finally approved. For the past six months, the County staff with frequent input from the City, has been attempting to secure sites under the guidelines established by HUD. Not only has this been frustrating, but in light of our City's volatile housing market, it has proven unworkable. HUD has been advised of the problems and agrees that changes must be made because the problems are not germane just to our City - but the "wheels of progress turn slowly." To address this problem on a local level, the Housing Authority requested and received from the Board of Supervisors a $15,000 interest-free loan from San Diego County general funds. These funds will be utilized to secure options on sites suitable for the devel- opment of low-income housing in Chula Vista. In granting this loan, the Board made it contingent upon the City also contributing $15,000 toward the development of the program. Specifically, our funds would be utilized for appraisals, site studies and environmental reports. Our participation could be accomplished by adopting the Block Grant Transfer resolution and approving the resolution executing an agreement between the City and Housing Authority. Prior to deciding, and in accordance with the Block Grant regulations, it would be appropriate for Council to solicit citizen input on this item which has been advertised (this is not a formal public hearing). Blook Grant Transfer Block Grant regulations, Section 570.312, allow funds to be transferred from one activity to another within certain parameters. Staff is proposing to transfer $15,000 JTS: as rvi i r n r-rc+ (continued on page 2) C/~I11D1 I J Agreement X Resolution~X Ordinance Plat Notification List Other Disalav Ad ENVIRONMENTAL DOCUMENT: Attached Submitted on FINANCIAL IMPACT $15,000 of Block Grants would be transferred from the Housing Rehabilitation activity #.632-6320-BG54 to the General Administration activity #632-6320-BG59. Also, a loan to the Housing Authority for $15,000 would be granted. This would. not result in an additional appropriation of funds. STAFF RECOMMENDATION Solicit citizen input; adopt resolutions. BOARD/COMMISSION RECOMMENDATION -- - COUNCIL ACTION ~~i~~ Item No. 23,23a For meeting of 7/24/79 Page 2 from the Housing Rehabilitation activity to the General Administration activity. This transfer is within the parameters of the Block Grant regulations and will enable the City to participate in the program without appropriating additional funds. The $15,000 would not affect our current rehabilitation budget inasmuch as we have recently received a $16,000 refund due to a sale of a property rehabilitated two years ago. Agreement By adopting the resolution approving and executing the attached agreement, the following actions would occur: 1. The City will lend the Housing Authority $15,000 of Block Grant funds fo activities relative to the implementation of a low-rent public housing program. 2. The funds will be used for necessary expenses prior to construction, in planning housing for lower-income persons. Activities will in- clude site and utility plans, preliminary cost estimates, urban design documentation, sketch drawings, and environmental studies. In providing the $15,000 loan to the Housing Authority, the City places at risk the full amount of the loan. At this time, it is not known how much, if any, of the funds will be repaid. It is anticipated that HUD will reimburse the Housing Authority for costs associated with the program. The agreement between the City and Housing Authority provides for the City's loan to be repaid from this reimbursement. ~~~~ ~n CITY OF CHULA VISTA COMMU~! ITY DEVELOPME-~T BLOCK GRA"~T r v.,~:r.. .. , , ~ .. ~~a ~D. THE CITY OF CHULA VISTA IS REQUESTING CITIZEN INPUT ON PROPOSED ADJUSTMENTS TO ITS BLOCK GRANT PROGRAM THE CITY IS PROPOSING TO TRANSFER $15,~UU FROM THE HOUSING AND ~~OBILEHOME REHABILI- TATION LOAN ACCOUNT TO THE PLANNING AND URBAN DESIGN ACCOUNT PRIOR TO TAKING ACTION ON THIS TRANSFER, THE CITY COUNCIL IS ENCOURAGING CITIZENS TO PRESENT THEIR VIEWS ON THIS ITEM AT THE CITY COUNCIL MEETING OF DULY 24, 1979 AT 7:00 P.M. IN THE COUNCIL CHAMBERS, Z76 FOURTH AVENUE, CHULA VISTA, CALIFORNIA ANY QUESTIONS MAY BE DIRECTED TO THE COMMUNITY DEVELOPMENT DEPARTMENT, Z76 FOURTH AVENUE, CHULA VISTA, CALIFORNIA TELEPHONE 575-5047, BY: PAUL G, DESROCHERS COMMUNITY DEVELOPMENT DIRECTOR DATED: 7/22/79