HomeMy WebLinkAboutMINUTES - 10271987 - 1.37 TO: BOARD OF SUPERVISORS
FROM: Harvey E. Bragdon Cwtra
Director of Community Development v�,,.,���,�,}}��,
DATE: October 14, 1987 C )sta
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SUBJECT: County Housing Assistance Plan
SPECIFIC REQUEST(S) OR RECONME NDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Approve 1987-1988 Housing Assistance Plan Annual Housing Assistance -
Goals are 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 Urban Development.
BACKGROUND/REASONS FOR RECOMMENDATIONS
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 was approved by the Board on
September 30, 1986. The third- annual submission for the time
period 10/1/87 - .9/30/88 is due at this time, and must be submitted-
prior' to October 31, 1987.
FINANCIAL IMPACT
Absent an approved HAP the County cannot. submit 'a Statement of Use
for Community Development Block Grant Funds. The' County receives
approximately $2.0 million- annually for this program.
CONTINUED ON ATTACHMENT: X YES SIGNATURE
4 Ya
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATTW OF D7 COMMITTEE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON _OCT 0 7 1987 APPROVED AS RECOMMENDED -.� OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT —z� ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
cc: Community Development ATTESTED OCT 9 7 1987
County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
HUD via Community Development AND COUNTY ADMINISTRATOR
BY C. , 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 has substantially diminished 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. The City program includes a component for
mobile home owners. In addition, the County has developed a
purchase/rehabilitation component for lower income purchasers in a 1987
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 assis-
tance is provided by the County Community Services Department. using CDBG,
state and PG&E funds.
_ Included in the 1987-88 program are the following allocations to housing
rehabilitation programs:
Program 1987-88 Budgeted Amount
County $650,000
City of San Pablo $130,000
2) Mortgage Assistance: The County and a number of cooperating cities are
involved in a below market interest rate mortgage bond programs as author-
ized 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 has diminished our ability to provide such financing,
however we would expect an annual issuance of revenue bonds of around $30
million representing 400 mortgages, 10% of which could be for CDBG defined
low and moderate income households, or 20 households per year.
In its most recent issuance of mortgage revenue bonds the County itself
secured a $1.8 million allocation of funds. It is intended that the alloca-
tion be used in conjunction with various efforts which will achieve CDBG
defined low and moderate income benefit.
Page 2
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 sold out, and used mortgage. revenue bond funds to
finance much of the development. The same non-profit organization is exam-
ining other development opportunities at this time. A 56 unit
owner-builder housing development for .lower income has been approved and is
under construction at this time. Affordability was guaranteed via an allo-
cation of CDBG funds and a waiver of development fees.
The County, through its density bonus provision, has also approved two
additional for sale developments that will contain low and moderate income
benefit. Approximately 25 units will result in lower income occupancy.
The County has recently begun funding a reverse annuity mortgage assistance
program to help lower income seniors afford to stay in their home. In
1987-88, $20,000 has been allocated.
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 has sub-
stantially diminished the attractiveness of tax exempt bond financing in
particular, and investment in rental real estate in general . The stated
annual goal may 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- i.ncome. A number of the projects were made financially feas-
ible 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. The County is currently structur-
ing a tax exempt financing for a 102 unit elderly project that could have
as many as 40 lower income units. Serious discussions with three other
developers at this time could result in additional tax exempt financed
projects.
In addition to financing initiatives, the County, via its Housing
Authority, . is actively pursuing its advocacy role. The 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 completed a visual and audio
presentation designed to overcome negative perceptions of low and moderate
income housing. The Housing Authority is also promoting the idea of
creating housing development funds. Such funds already or will soon exist
Page 3
with CDBG funds, Housing Authority funds, tax increment funds, and local.
revenues derived from housing revenue bond issues.
Non-profit organizations are also evaluating development opportunities in
the rental housing area as well . Other initiatives are underway to develop
opportunities for affordable senior housing in number of Urban County
Communities.
2) The non-profit owner of two former farm labor camps in East County is in-
vestigating 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 received grants from two foundations to implement a program
designed to create second units, i .e. , "Granny Units". The County recently
adopted a Second Unit Ordinance designed to encourage the creation of
second units consistent with standards to assure compatibility with neigh-
bors.
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.
Over $20 million has been secured to modernize many of the agency's public
housing units. Over $100,000 in CDBG funds has - been provided to the
Authority to further the modernization effort.
4).. _ Homeless Assistance
Numerous initiatives in this area have been started within the last year.
The County Board of Supervisors established an independent Office of
Homelessness. The fiscal arm of the agency has initiated its initial pro-
gram, a financial assistance fund to assist homeless families in paying
first/last month rent/security deposit requirements to secure housing.
County CDBG funds are being used to administer the program. An additional
$100,000 in County Trust Funds have been allocated to match private dona-
tions to make the assistance fund operational . Phoenix Programs, a
non-profit organization, has recently established a shelter for the develop-
mentally disabled in Antioch. The City approved the project in the face of
stiff neighborhood opposition. The County has complied with the McKinney
Act and filed a Comprehensive Homeless Assistance Plan and will compete
aggressively for available funds.
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