HomeMy WebLinkAboutMINUTES - 09301986 - 1.47 ., 1-047 �
TO: BOARD OF SUPERVISORS
FROM: Harvey E. Bragdon
Director of Community Development
DATE: September 16, 1986
SUBJECT: County Housing Assistance Plan
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SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
I . RECOMMENDATION
Approve 1987-1988 Housing Assistance Plan Annual Housing Assistance Goals as
attached hereto, pursuant to the Community Development Block Grant Program; and
authorize the Director of Community Development to forward said Plan to the U.S.
Department of Housing and Community Development.
II . BACKGROUND
The Housing Assistance Plan (HAP) is a required part of the County's Community
Development Block Grant Statement. Its purpose is to survey housing conditions,
assess the housing assistance needs of the County's low and moderate income
households, indicate goals for housing assistance, and indicate general
locations of proposed assisted housing.
In September, 1985 the Board approved and HUD subsequently approved a three year
HAP for the period 10/1/85 - 9/30/88. An annual goal statement for the period
10/1/85 - 9/30/86 was included in the Board's September, 1985 action. The
second annual submission for the time period 10/1/86 - 8/30/87 is due at this
time, and must be submitted prior to October 1, 1986.
III . FINANCIAL IMPACT
Absent an approved HAP the County cannot submit atatement of Use for Community
Development Block Grant Funds. The County recei s approximat y $2.5 million
annually for this program.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
_RECOMMENDATION OF COUNTY ADMINISTRATOR —REQM9NDAXTwOFr COMMITTEE
_APPROVE ,OTHER e
,t
SIGNATURE(S):
ACTION OF BOARD ON SEF 3 U 1986 APPROVED AS RECOMMENDED �_ OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
_UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
Orig: Community Development SEP 3 0 1986
cc: County Administrator ATTESTED
County Counsel PHIL BATCHELOR, CLERK OF THE
HUD via Community Development BOARD OF SUPERVISORS AND COUNTY
ADMINISTRATOR
BY �� ,DEPUTY
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PART IV ANNUAL GOAL NARRATIVE
In implementing its housing goals the County and the participating cities address
goals and policies articulated in their Housing Elements. The County adopted an
updated Housing Element in April , 1985.
In as much as tax exempt financing is the major vehicle for accomplishing our housing
objectives the County went on record with our legislative delegation in support of
such financing as tax reform was considered. Not withstanding these efforts, the
Tax Reform Act will substantially diminish the ability of the County to address its
housing goals.
The following programs and activities are anticipated for use in addressing the
housing goals of the County.
A) Homeowner Assistance
1) Housing Rehabilitation Loans: CDBG funds are used to address housing
rehabilitation needs. The County administered program provides coverage
for most of the urban county. The City of San Pablo operates a separate
program with County CDBG funds. In addition, the County has developed a
purchase/rehabilitation component for lower income purchasers in a 1985
single family mortgage finance program. Low and moderate income benefit
are assured by targeting the programs by prescriptive qualifying criteria,
including income. Additional home improvement and weatherization
assistance is provided by the County Community Services Department using
CDBG, state and PG&E funds.
Included in the 1986-87 program are the following allocations to housing
rehabilitation programs:
Program 1986-87 Budgeted Amount
County $850,000
City of San Pablo $335,000
2) Mortgage Assistance: The County and a number of cooperating cities are
involved in a below market interest rate mortgage bond. programs as
authorized under AB 1355. A portion of the loans to be originated will be
for qualifying low and moderate income households. Similar programs may be
implemented by cities and local redevelopment agencies. The pending tax
reform measure will diminish our ability to provide such financing, however
we would expect an. annual issuance of revenue bonds of around $50 million
representing 500 mortgages, 10% of which are for CDBG defined low and
moderate income households, or 50 households per year.
The County has, in the past, contracted with a non-profit agency to develop
affordable to moderate income buyers. This project, which is receiving CD
and state funding, is nearly sold out, and used mortgage revenue bond funds
to finance much of the development. The same non-profit organization, as
well as a second non-profit, are examining other development opportunities
at this time. A major owner-builder housing development for lower income
is under consideration at this time and could be underway in 1987.
B) Renter Assistance
1) New Construction: The County is continuing to work with private and
non-profit developers to produce new rental housing. The emphasis in the
past few years has shifted to the production of family housing. The County
has published an inventory and evaluation of potential sites for rental
housing. The County is providing this information to interested
developers. The current emphasis will be the production of affordable
rental units through the sale of tax exempt revenue bonds. The Tax Reform
Act will substantially diminish the attractiveness of tax exempt bond
financing in particular, and investment in rental real estate in general .
The stated annual goal is significantly lower than the prior years goals,
yet may still be overly aggressive given the investment community's likely
response to tax reform.
To date, the County and various participating cities have financed over
2800 new rental units of which over 550 units are affordable units for low
and moderate income. A number of the projects were made financially
feasible by ,the provision of supplementary financing from CDBG and other
sources. An additional 750 units - 150 affordable lower income units -
could be financed with tax exempt bonds. Tax reform will eliminate or
severely alter this means of financing rental units.
In addition to financing initiatives, the County, via its Housing
Authority, is actively pursuing its advocacy role. Th-e- Housing Authority
act as a liaison between the County and cities regarding the need for
rental housing and the. need for additional land use opportunities to
accommodate rental housing. The Housing Authority has recently completed a
visual and audio presentation designed to overcome negative perceptions of
low and moderate income housing. In addition, the Housing Authority hosts
an information exchange among local housing staff and housing committee
people. The Housing Authority is also promoting the idea of creating
housing development funds. Such funds already or will soon exist with CDBG
funds, Housing Authority funds, tax increment funds, and local revenues
derived from housing revenue bond issues.
'
Non-profit organizations are alsoevaluating development opportunities in
the rental housing area as well . One of the non-profits is currently
intensively evaluating the undeveloped portion of land held by the County
next tot he Chilpancingovista Section 202 handicapped housing development
in Pleasant Hill . Other initiatives are underway to develop opportunities
for affordable senior housing in number of Urban County Communities.
2) The completion of the renovation of two former farm labor camps in East
County is expected in this program year. The non-profit organization
involved is maintaining ownership of the units for rental to lower income
families . (farmworkers) . The non-profit is investigating additional
development activities on one of the two sites. The County Housing
Authority is implementing .a rental housing rehabilitation program with CD
funds, HUD, and Rental Rehabilitation funds. Over $800,000 in funds are
devoted to the program at this time. With 2-1 financial leverage expected,
an effective $1.65 million is available. In addition, the County has
recently received grants from two foundations to implement a program
designed to create second units, i .e. , "Granny Units".
3) Existing: The County Housing Authority is continuing the implementation of
the Section 8 Existing Housing Program. The Housing Authority has a
Comprehensive Improvement Assistance Program in its public housing units.
Nearly $15 million has been secured to modernize 476, or 42%, of the
agency's public housing units.
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