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HomeMy WebLinkAboutMINUTES - 11091993 - 1.46 Contra Costa TO: BOARD OF SUPERVISORS - Coin J FROM: Harvey E . Bragdon Director of Community Development DATE: November 16, 1993 SUBJECT: Allocation of Additional CDBG Housing Development Assistance Funds to the San Pablo Owner-Occupied Housing Rehabilitation Program SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ( 1) APPROVE an additional allocation of $60, 000 in FY 1993/94 Community Development Block Grant (CDBG) Housing Development Assistance Funds to the City of San Pablo Housing Rehabilitation Program; and (2) AUTHORIZE the Deputy Director, Redevelopment or his designee to increase the spending limit in CDBG Project Agreement 19-9 by this amount. FISCAL IMPACT No General Funds are involved. Funds for this project will come from the FY 1993/94 CDBG Housing Development Assistance Fund approved by the Board .of Supervisors on February 23, 1994 . CDBG funds are provided to the County through the U.S. Department of Housing and Urban Development. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT OF BO RD COMMIT E APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON 1993 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A /UNANIMOUS (ABSENT ) 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. Contact: Kathleen Hamm 646-4208 ATTESTED NOV 91993 cc: County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR Community Development City of San Pablo BY DEPUTY File D1 . 11(e) ( 19 . 9) BACKGROUND/REASONS FOR RECOMMENDATIONS On February 23, 1993, the Board of Supervisors approved the allocation of $644,700 in FY 1993/94 CDBG funds to the Housing Development Assistance Fund (HDAF) for use in funding affordable housing projects as they develop throughout the program year. The current balance in the HDAF is $444,700 . During the regular FY 1993/94 CDBG funding cycle, the City of San Pablo was awarded $180,000 in CDBG funds to be used in combination with an estimated $48,500 in CDBG program income and carryover funds, and $65,448 in City resources, for a total annual Housing Rehabilitation and Neighborhood Preservation Program budget of $293, 948 . As specified in the Project Agreement, CDBG funds were to be used for the provision of 10 to 15 low-interest, deferred loans for the rehabilitation of housing owned and occupied by low and moderate income households residing in the City of San Pablo. In addition to rehabilitation loans, the City also uses CDBG funds to provide emergency repair grants, paint rebates, and dump vouchers, and pay loan settlement costs and temporary relocation assistance. Staff and administrative costs for this program are paid out of City resources . In October of 1993, the City of San Pablo requested an additional $180, 000 from the CDBG Housing Development Assistance Fund for use in supporting additional rehabilitation loans (vote: six yes, two abstentions, one no) . The City based its request on an increased staffing commitment to the program and loan production to date. As of October 15, 1993, the City had successfully obligated $145,250 in CDBG funds for 10 rehabilitation loans for qualified lower income households, leaving approximately $63,300 for additional loans in the remaining five months of the program year. The City' s request was reviewed by the Housing and Community Development Advisory Committee (HCDAC) on October 27, 1993 . At this meeting, the HCDAC voted to recommend that the City of San Pablo receive an allocation of $60,000 from the FY 1993/94 HDAF for use in funding additional rehabilitation loans for lower income homeowners . The Committee' s recommendation was based on the following rationale. While allocations made to the County- supported rehabilitation programs are to be regarded as an annual allocation, the current level of funding in the HDAF is adequate to provide some additional support for the City' s rehabilitation program. The proposed additional allocation of $60,000 will provide the City with $123, 300 in total available loan funds for the remaining five months of the program, year. Based on average loan production during the first seven months, this will permit the City to make an additional eight to 10 loans, thus maintaining the loan production experienced to date. The additional $60, 000 will result in a total FY 1993/94 CDBG/HDAF allocation to the San Pablo Rehabilitation Program of $240,000. kh/k4/B0S—SP1 a