Loading...
HomeMy WebLinkAboutMINUTES - 04041979 - COB BOX 73 In the Board of Supervisors of Contra Costa County, State of California April 28 0 1981 In the Matter of Authorizing the Submittal of a Proposal to the State of California Department of Housing and Community Development for Deferred Payment Rehabilitation Loan Funds (SB966/AB333/SB229) IT IS BY THE BOARD ORDERED that the Planning Department is authorized to submit to the State of California Department of Housing and Community Development a proposal for the use of additional Deferred Payment Rehabilitation Loan Funds to undertake housing rehabilitation in Fiscal Year 1981-82, and that the Chairman is authorized to sign said proposal . PASSED BY THE BOARD on April 28 , 1981, by the following vote : AYES : Supervisors Fanden, Schroder, McPeak, Torlakson, Powers . NOES : None ABSENT: None I hereby certify that the foregoing is a true and correct copy of an order entered on the minutes of said Board of Supervisors on the date aforesaid. Or i g: P 1 ann i ng Witness my hand and the Seal of the Board of cc: Planning Supervisors 28th April 81 State HCD affixed this day of 19_ Administrator Auditor-Controller J. R. OLSSON, Clerk By Deputy Clerk C , Matthews H-24 3/79 15M CONTRA COSTA COUNTY PLANNING DEPARTMENT Cort"-r t AP TO: M. G. Wi ngett DATE: April 17, 1981 ?J �9g1 County Administrator C FROM: Anthony A. Dehaesu SUBJECT: Deferred _Paymentlr Director of Plann'! - Rehabilitation Loan Fund In 1978 the State Legislature passed SB 966 (Marks) which created a program of deferred payment loan funds to assist low and moderate income households in the rehabilitation of their housing. The State, through the Department of Housing and Community Development (HCD) , will lend funds to local govern- ment agencies who, in turn, lend to eligible property owners. The loans are in the form of deferred loans with 3% interest on the original principal . Attachment A describes the program provisions. Local government agencies eligible to participate in this program are those with operational housing rehabilitation programs. The County was a recipient of a $100,000 allocation under the first two rounds of allocation for this program. To date eight supplementary loans have been originated for a total of $50,000. The Deferred Payment Rehabilitation Loan Fund is considered to be a supple- mentary source of rehabilitation financial assistance, i .e. , it should not be utilized to replace local housing rehabilitation funds. Loans made avail- able from the Deferred Payment Loan fund would be utilized to cover the costs of rehabilitation which are in excess of what the County can currently pro- vide. The two funding sources acting in tandem could result in the County having the capabilities to assist more families in need of rehabilitation assistance. Administrative costs for the program cannot be paid out of the Deferred Payment Loan Fund. The Federal Community Development Block Grant funds - allocated to the County Building Inspection Department would be utilized to cover administrative costs. Additional costs are minimal . Additional staff processing time of- approximately one hour° is necessary to prepare-- - the necessary loan documents. Monitoring of the rehab i I i-tation work- is =a=___ .- .- _- current function of the program and no additional time is required. The preparation of quarterly progress reports would require approximately four staff hours per quarter. The benefits of the additional rehabilitation funds, and the likelihook that families who might not otherwise be able to receive financial assistance can be assisted, seem to far outweigh the small incremental costs of administration. M. G. Wingett - 2 - April 17, 1981 The State is currently soliciting Requests for Proposals from local agencies for use of these funds in Fiscal Year 1981-82. 1 recommend that the Board authorize the submittal of a proposal for the use of additional Deferred Payment Loan Funds. The Program is another source of funds by which the County can provide rehabilitation assistance to low and moderate income households. Please schedule this before the Board of Supervisors for their consideration. AAD:jyl Attachment cc: County Counsel RECEIVED J.R. OLSSON CLERK A Df S'.PERV6"_CRS C N STA CO ^r c" HCD USE ONLY Application No. Date Received Application Complete APPLICATION DEFERRED PAYMENT REHABILITATION LOAN PROGRAM SECTION I : APPLICANT INFORMATION 1. Name of Local Entity Contra Costa County Planning Department Address PO Box 951 Martinez, California 94553 Phone ( 415 ) 372-2035 Contact Person Jim Kennedy, Senior Planner 2. Local, Entity is a: ( ) City (XX ) County ( ) Nonprofit Corporation ( ) Indian Reservation or Rancheria ( ) Housing Authority ( ) Redevelopment Agency ( ) Other (specify) 3. Data on jurisdictions ( i .e. , incorporated cities or counties) in which Local Entity operates a Rehabilitation Program: % of Popula- a Sub- Median tion With Income Standard Jurisdiction Household Below 80% of % Minority # Dwelling Dwelling Name Population Income Areawide Median Population Units . Units Unincorporate Contra Costa 195,892* $15 026-° 37.4- 9.2 73,669, 2.7-11 (Target Areas' are 66.9% low and moderate income) NOTE: Please use footnotes and this space to provide. the sources of data. 1980 Census (Preliminary Counts) 1975 Special ,Census (1) SECTION II : FUND REOUEST 1. Amount of State Deferred Payment Rehabilitation Loan Funds requested: $ 100,000 SECTION III : REHABILITATION PROGRAM ELIGIBILITY 1. Which of the following program(s) does the local entity operate in the areas where Deferred Payment Loan Program funds would be used: ( XX) A rehabilitation loan or code enforcement proqram conducted with the use of Community Development Block Grant funds, Section 312 Loan funds or other Federal funds. (Year program began 1974 ) ( XX) A rehabilitation loan program conducted with California Housing Finance Agency funds in Concentrated Rehabilitation Area(s) . (Year program began 1979 ) ( ) A Marks-Foran residential .rehabilitation financing program. (Year program began ) ( ) A city-wide or county-wide systematic code enforcement program pursuant to which the California Housing Finance Agency has allocated funds from improvement loans for rehabilitation of housing. (Year program began ) ( ) A local code enforcement program in which a code enforcement agency repairs substandard structures when an owner fails to comply with a final notice from the agency to correct code violations. (Year program began ) ( ) A program conducted by the California Housing Finance Agency in a rural Mortgage Assistance Area. (Year program began ) 2. Is the local entity currently receiving funding from the Deferred Payment Rehabilitation Loan Program and will the same target area be used if the local entity receives a commitment of funds as a result of this application? XX Yes No. 3. If no, on separate sheets labeled ATTACHMENT III - (3) , please provide the following information for each of the programs checked above in which Deferred Payment Rehabilitation Loan—finds may be used:l/ a. Maps showing target areas b. Total number of dwelling units in target areas c. Total number of residents in target areas d. Total number and percent of dwelling units in deteriorating condition 2/ e. Total number and percent of dwelling units in dilapidated condition 3/ f. Total proportion of residents which are very low income (below 50% of the area-wide median) , low income (beteen 50% and 80% of the area-wide median) and moderate income (between 81% and 120% of the area-wide median) g. Total proportion of the target area population which is minority I/Use the atest reliable data available. Please provide dates and sources of data. 7/Substandard, capable of rehabilitation. 7/Substandard, incapable of rehabilitation. (2) SECTION IV: SUMMARY OF CUOT REHABILITATION PROGRAMS � - 1. Description of current programs: Contra Costa County Housing Rehabilitation Program BMIR Loans Local With Monthly Deferred Other Payments Loans Grants ( ) vai a e in a areas where � - State deferred funds are to Yes, Emer- be used? (Yes or No) Yes Yes gency Only Operational? es or o Yes es es 1. If yes, give year 1977 1977 1976 started 2. If no, give date of planned implementation C. Maximum loan/grant amount? $ 12,000 $ 10,000 $ 1 ,500 $ 77—Are renter-occupied units eligible? (Yes or No) No No No I. If yes, are rent increases limited after rehabilita- tion? (Yes or No) E. Funding Source(s) e.g. , CDBG, CHFA, FmHA, Section 312, CDBG, 312, CDBG, 312 CDBG, 312 Marks-Foran, etc. ) CHFA CHFA CHFA F. Total loan/grant un s disbursed during life of program. $1 , 100,000 $ 1 ,275,000 $ 150,000 $ 1. CDBG 1 ,050,000 1 ,275,000 2. CHFA 3. FmHA 3, 4. 312 27,000 5. OtherG,. Total ( ) loan/grant fund—s— 400 000 $ 400,000 $ $ disbursed during FY 1979-80 $ 1. CDBG 400,000 400,000 2. CHFA 3. FmHA 4. 312 5. Other ( ) H. Total loan/grant funds disbursed during FY 1980-81 (actual to date) $ 500,000 $ 500,000 $ $ 1. CDBG 500,000 500,000 2. CHFA 3. FmHA 4. 312 5. Other 1. Total propose loan/grant funds to be available in FY 1981-82 $ 400,000 $ 400,000 $ $ 1. CDBG 400,000 400,000 2. CHFA . 3. FmHA 4. 312 5. Other ( ) Comments: County Program includes unincorporated communities and the Cities of Antioch, Brentwood, Martinez, Walnut Creek, Pleasant Hill and Lafayette. (3) N V) O m .. � n (D r 0 C O rD C (D O C rD o O O rt 6 CL3 yeo• (D n 3 0 -L3 SR 0R z �n a (D a rD a o, o a _ .. r N (D O O to Z N -� < Z O -1 m O £ G OZ -nom t -• O -+ O a a ,erD0 o neroo m c Rn n -+) o (n -h n n -« s z z c s (D -s R n o rD c o (D rD (D o (D o Z a o 0 o cn t, .. R. c v7 — c r. < 3c • s - . Io rt (D c < R rD O 7 < rD Di rt 0, O O n (D •• -0 3 n .... a O £ rt — -s c o Q cc o n n a — 3 o O rD rD I O �< '+i -+i n c o D C. (O 3 r cQ J -J J L!1 C 'O -fi to A a rD c c rD - _0s < r+ C7 O. rt n rD Q o m � n (o m c 3 �G rD (D -J. w O O_ (D £ N d rt O rD CL O O O I 0) 3 -.• = I rt rt rt rt -+. rt CL T rD O (D 0+ (D -• — CD N -. 0 0, C rD --h 0 0_ O O C O LM O to m CL .. n — con c c :3 � _ c O =3rD O O •J 0+ a •J 00 C rt 0 0+ •J 3 n rt C = •J S < rf V1 rt 0+ .Z) rD o £ 0 n (D rt o, v m 3 rD rD o _ rD c -+, rt 0) z S (D (D S 3 , S Z :c rt V1 --I CD o c O rD cn O rD r) n rD c .�OC n O Z z o RLn L" C'. ,e0 (A o m rD LA rD rt (3D (D a o v ns (D z a cc c o � c 0 r DD> w o r* , O 0 O T v 'G = O O rD ;D O s z DO O c • n � - o z o D C :3 O N 3 3 la rt m O 00 rb 'm A w N (D (D£ 3 rt7r S (n M N (D D - - rD n � O Z rr (D rt O d S 0 rt p O - Q C A (D < O J a rt c ) V , 0) O Co O .R N 3 1 O w O W O r £ (D O CL Z rD - x 0 o n p o rDrD to O (D T (D C < Q. n V b1 O to N C 3 O Un 00 i-0 W Ln — O O rD O rt rD v o+ ^S N O (D O N (D T c O d < < 0 W O_ • o o rD -• r S rD rD • rt n CL O T £ Z < i- OD O O O O p o a:) O co d N SECTION V: PROPOSED PROGRAM INFORMATION 1. Need. Briefly discuss how State funds used to rehabilitate residential properties address an identified housing need in your community. Also, provide information and data showing the degree of need for rehabilitation of .residential, propertiesr;:;•-; ,in your community: The expected use of SB 966 funds is to supplement the currently available funds. The funds would be primarily utilized to do rehabilitation work which cannot be done under current County policies because of limitations on maximum loan amounts. The County has found that in many of the target areas that because of the degree of deterioration, combined with inflation in the construction trade, . there have been a number of applicants who could not be assisted, or could not have all desired repairs completed. The additional funds available through SB 966 funds could provide the incremental amounts necessary to assure that more households in need of rehabilitation can be assisted. The targeted areas proposed for SB 966 funds are those which have the greatest number of older homes and the greatest portion of substandard units. Further, the areas have the largest proportion of low and moderate income households. County and City policy has been, and will continue to be, to conserve and rehabilitate these homes to provide suitable living environments for its residents. 2. Anticipated Benefit. Indicate the estimated number of residential properties sing e- ami y, owner-occupant and rental properties) and number of units which will be assisted with Deferred Payment Rehabilitation Loan funds used in combina- tion with local housing rehabilitation resources: With the additional SB 966 funds we would expect to be able to assist approximately 17 households (assuming $6,000 per, supplementary deferred loan) . 3. Use of Other Funds and Maintenance of Effort. Indicate the types and estimated amounts of other rehabilitation resources which the local entity intends to combine with State funds. Also, provide information which assures that the local entity will not reduce the level of local funding available for housing rehabilitation, if it receives a commitment of State funds: In Fiscal Year 1981-82 the Contra Costa County Housing Rehabilitation Program (which includes Antioch, Brentwood and Martinez) will have a CDBG allocation of $750,000. The County is anticipating using other available but diminishing resources and programs as appropriate. In addition the County is negotiating with its existing private lender and other lenders to increase the degree of their participation. (5) SECTION V: PROPOSED PROGRAM INFORMATION (continued) n 4. Capacity to Implement Program. Discuss ' the­local' entity's ' ability to lend all . tate funds received within a one-year period. provide a schedule indicating when the local entity intends to loan the funds for which it has appl ied.1/ Include a brief summary of the rehabilitation experience of the person or persons on your staff who will be responsible for program implementation: The County utilized its first increment of SB 966 funds ($50,000) within a one-year period. The second increment to the County and the Cities of Antioch, Brentwood and Martinez are programmed for use as soon as the State has approved the contract. A number of clients are awaiting processing at this time. The ability to use the funds is, in our minds, demonstrated. The need, given available local resources, inflation and extent of structure deterioration in our target areas is apparent. The County would anticipate using the SB 966 funds in equal quarterly increments (25% per quarter) . Biographies of persons responsible for program implementation are attached. 5. Displacement. If the local entity is proposing to use State Deferred . Payment funds to rel-iabilitate rental properties, indicate the extent to which rent increases and displacement of current tenants will be avoided or prevented. Also, indicate the means by which the local entity intends to limit rent increases after rehabilitation and assure continuing benefit by low-income households. Not applicable. ince t e starting date for the one-year period is not known at this time, appli- cants should show estimated expenditures ( loans) during four quarters without using actual dates . (6) The biographies bel are for County Housing RehabilitaProgram staff: Janet HarOUtUnian - Administrative Services Assistant II Ms. Haroutunian has Also been with the Neighborhood Preservation Program since 1977. As the prol rain administrative person, her primary duties iriclude the processing of the rehabilitation loan application and the determination of financial eligibility. She also reviews the Lot Book reports and prepares the applications for the Lending Institution. Other duties include monthly reporting on each of the seven target areas, a monthly budget report, and the preparation of the annual Program Budget. She also attends community meetings and offers referral information when possible. William Martindale - Special Programs Coordinator Mr. Martindale joined the Contra Costa County f)uilding Inspection Department in May 1979. As the Special Prograins Coordinator, he is responsible for all work regarding Mobile Homes, Abatements, aril Demolitions, Restoration of Service, and Code Compliance. A major portion of his tune is spent with the Housing Rehabilitation Loan Program. In his capacity as Coordinator he supervises all inspectors and acts as the Departments representatives when there are disputes between homeowners and contractors. Mr. Martindale carne to Contra Costa County after 15 years of service for the City of El Cerrito. As the Building Official for tyre city his experience included Plan Checking, Inspection, Zoning enforcement and overseeing tire city's PACE Program. SECTION V: PROPOSED PROGRAM INFORMATION (continued) 6. Specific Proposals. Applicants that plan to loan State Deferred funds .for.. , specific renta properties in their communities are requested to fill out and submit the enclosed "Rental Property Data Sheet" with as much of the requested information as is currently available. Label the Data Sheet as ATTACHMENT V-(6) . SECTION VI : ADDITIONAL REQUIRED INFORMATION 1. Resolution from Governinq Body. For all applicants. submit as ATTACHMENT VI-(1), a resolution from the applicant's governing body. approving the submission of an application for State Deferred Payment Rehabilitaton Loan Funds. 2. Housing Element Compliance. If the applicant is a public agency, has your com- munity adopted a Housing7lement since 1977 which has been found to be adequate by the Department of Housing and Community Development? X* Yes No. If no, discuss the current status of the -Housing Element with respect to TF-e provisions of Government Code 65302(c) and the 1977 Housing Element Guidelines on a separate sheet labeled as ATTACHMENT VI-(2) . *County' s adopted and submitted for State review in December, 1980. 3. Additional Requirements for Nonprofit Housinq Corporations. If the applicant is a nonprofit housing corporation include as AFTACHMENT VI-(3) the following additional information : ( If applicant has submitted this information in prior applications for funding under the Deferred Program, it is unnecessary to resubmit items "a"-"e" only. Item "f" must be resubmitted, unless the previous authorization is adequate to cover this application. Please indicate date of past application ) a. Evidence of adequate fidelity bonds ; b. Copies of duly certified Articles of Incorporation, by-laws, and all amend- ments thereto; c. A list of the names and addresses of all present members of the Board of Directors or other governing body; d. A brief narrative history of past activities in the area of residential rehabilitation; e. A letter of documentation indicating Income Tax Exempt status from both Federal and State governments; f. If the nonprofit is proposing to make rehabilitation loans within the juris- diction of a city or county which has made or is considering its own applica- tion for Program funds, the nonprofit shall submit. written authorization for this application from the governing body of the city or county. 4. For local entities proposing to lend program funds in rural areas, submit as ATTACHMENT VI-(4), a etter from the County upervisor of t e armers Home Admin- istration (FmHA) stating that the proposed target areas with rental properties are eligible rural lending areas under FmHA regulations. The areas must be cited by name or otherwise described individually in the letter. 5. For applicants which are rural nonprofits or non-entitlement communities operating in rural areas, the Department may provide grant funds for costs of administering the Deferre ayment Rehabilitation Loan Program in an amount up to 15% of the total commitment of State Deferred Payment Loan funds. If the applicant is a nonprofit or non-entitlement local public entity which will operate its rehabili- tation program in. a rural area and intends to request an Administrative Grant, submit the enclosed "Proposed Program Budget" form documenting the need for the grant. Label the Program Budget as ,ATTACHMENT VI-(5) to your Application. (7) r SECTION. VII : CERTIFICATION AND EXECUTION I hereby certify that the statements,"'facts; 'and' information contained in this appli- cation and the documents and attachments submitted herewith are true and correct to the best of my knowledge and belief. By (Authorized Signature) APR 2 $ ��81 Chairm oard of Supervisors DAT ---r TITLE SIGNAFURE RH#14/1 (S) In the Board of Supervisors of Contra Costa County, State of California March 31 , X981 In the Matter of Authorizing Execution of an Amended Standard Agreement for the State Deferred Payment Rehabilitation Loan Program WHEREAS, the Board on January 20, 1981 authorized the execution of certain documents for the State Deferred Payment Rehabilitation Loan Pro- gram; and WHEREAS, the State has requested that minor amendments be made to the Standard Agreement; NOW THEREFORE IT IS BY THE BOARD ORDERED that the Chairman is hereby authorized to execute on behalf of the County a Standard Agreement as amended to borrow from the State a total amount not to exceed $125,000, to be used by itself and on behalf of these cities set forth in the Standard Agreement for purposes of lending deferred payment loans for housing re- habilitation. PASSED BY THE BOARD on March 31, 1981, by the following vote : AYES : Supervisors Fanden, Schroder, McPeak, Torlakson, Powers. NOES : None ABSENT: None 1 hereby certify that the foregoing is a true and correct copy of an order entered on the minutes of said Board of Supervisors on the date aforesaid. Witness my hand and the Seal of the Board of Orig: Planning Department Supervisors affixed this 31st da of March 19 81 a cc: Building Inspection y — County Administrator Auditor-Controller J. R. OLSSON, Clerk Byj &0gu',& . Deputy Clerk C. Matthews H-24 3/79 15M _I ••••I 111!!..lig ll .STANDARQ AGREEMENT — ;`T`1'00 ;,1:,.11 Al A`'B OF. IFQRNIA 9 iD. 2 koEv. t 1l7B1 H IIEr` 1. OF Gr". SGP. ❑ CONTROLLER THIS AGREEMENT, made and entered into this _$th day of December 1980_, ❑ in the State of California, by and between State of California, through its duly elected or appointed, ❑ qualified and acting ❑ ITLE OF OFFICER ACTING FOR STATE AGENCY NUMBER Director Department of Housing and Community Development 80-HRL-11 eroa/ter called the State, and Contra Costa County Ireofter called the Contractor. ITNESSETFI: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State ereinafter expressed, does hereby agree to furnish to the State services and materials, as follows: of forth service to be rendered by Cnntruetor,amount to be Ixiid Contractor,time for perfnrnrnco of completion,nod attach plans and specifications,if(lily.) Authority a. Pursuant to the criteria for eligibility and for the purposes authorized by Sections 50660-50670 of the California Health and Safety Code and the regulations published there- under (at 25 Cal . Admin. C. Sections 7400-7436) , the contractor has submitted to the State a Deferred-Payment Rehabilitation Loan Application No. 80-HRL-11, which is hereby incorporated as Attachment A and made a part of this agreement. b. Pursuant to the above sections and regulations, the State has approved Commitment No. 80-HRL-11 to permit contractor to loan funds to local borrowers for rehabilitation and provision of housing pursuant to Sections 50665-50670 of the California Health and Safety Code. c . To effect said loan, the State has decided to enter into this agreement with the contrac- tor according to the co iditions hereinafter expressed. All references to "the Fund" shall refer to the Housing Rehabilitation Loan Fund of the Department of Housing and Community Development . This agreement incorporates and is subject to the 'laws, and regulations cited Che probviisions on the reverse side hereof constitute a part of this agreement. IVITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date first above written. STATE OF CALIFORNIA CONTRACTOR iENCY CONTRAC R (IF 'JTHER THAN AN NOIVIDUAL,'STATC Y/HETHER A CORPORATION PARTNERS IP, ETC.) Pe t f7r) in 1 UTHORIZED SIGNATV REI Y 1 THORIZ D 51 NAT.01 R TLE TI 'L Chairman, Board of Supervisors ADDRESS ONTINUED ON-SHEETS, EACH BEARING NAME OF CONTRACTOR) Department of General Services AMOUNT ENCUMBERED APPROPRIATION FUND Housing Rehab. Use ONLY S cUNENCUMBERED BALANCE ITEM CHAPTER STATUTES FISCAL YEAR J ADJ. INCREASING ENCUMBRANCE FUNCTION ADJ. DECREASING ENCUMBRANCE LINE ITEM ALLOTMENT 1 herebycern upon ill own personal knowledge, that budgeted fund T.B.A. ND. B.R. NO. fl' I Y f ' t� b- f ore available for the period and purpose of [1a: expcnrliturc stated above. SIGNATURE OF ACCOUNTING OFFICER DATE I hereby certify that all conditions for exemption set forth in State Administrative. Manual Section 1208 hove been complied with and this document is exempt from review by the Department of Finance. SIGNATURE OF OFFICER SIGNING ON BEHALF OF THE AGENCY DATE II, 1. The Contractor agrees to inde niifv, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing; or resulting to any and all contractors, subcontractors, materialmen, lahorers and any other person, firm or corporation furnishing or! supplying work, services, materials or supplies in connection %with the performance of this contract, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may he injured or damaged by the Contractor in the performance of this contract. 2. The Contractor, and the agents and employees of Contractor, in the performance of this agreement, shall act in an independent capacity and not as officers or employees or agents of State of California. t 3. The State may terminate this agreement and he relieved of the payment of any consideration - to Contractor should Contractor fail to perform the covenants herein ccmtained at the time and in the manner herein provided. In the event of such tenoinatioii the State may proceed with the work in any manner deemed proper by the State. The cost to the State shall he deducted from ' I any sum due the Contractor under this agreement, and the balance, if any, shall be paid the Contractor upon demand. 4. Without the written consent of the State, this agrce+nent is not assignable by Contractor either in whole or in part. I9i J5. Time is the essence of this agreement. n 6. No'alterrtion oi; variation of the terms of this contrtct shall be'valid unless made in writing and signed IN the parties hereto, and.no oral'understanding or agreement not incorporated herein, shall be 17inding on any of the',partics hereto. 7. The consideration to be,paid Contractor, as provided herein, shall he in compensation for all of Contractor's expenses inci+rrcd in the performance hereof, including travel and per diem, unless otherwise expressly so provided. Pill, 8. Purpose The contractor agrees to expend all funds disbursed pursuant to this agreement only for the purposes and in the amounts that have been set forth in its application and to the extent they have been approved by the State. Contractor further agrees to solicit and approve local borrowers in accordance with the laws and regulations qovernina .this program. 9. Amount and Disbursement Schedule a. Upon receipt of a certified resolution authorizinq this aqreement and the proper execution of the appropriate security instruments, the State agrees to disburse to the contractor or its authorized agent funds not to exceed the total amount stated in Item I of Attachment B. b. The State further agrees to disburse said funds only for the approved purposes and itemized amounts stated in Item II of Attachment B. 10. Interest a. The loan herein shall bear simple interest at the rate of three percent (3q) per year on the principal balance of loan funds dis- bursed to the contractor. Payment of said interest shall be due at the time of repayment of the loan to the State, and shall accrue from the time of disbursal by contractor to the borrower until receipt of repayment by contractor. b. Interest shall be waived if and to the extent that the contractor remits in advance to the State a sum equal to and not less than 15 percent of the original principal amount of the loan. Prepay- ment of any portion or all of such a loan shall not entitle con- tractor the return of any such prepaid interest. 11. Term a. The effective date of this aqreement is January 15, 1981, subject to its approval by the State of California, Department of General Services. Where State law does not require this agreement to be approved by the Department of General Services, the effective date of this agreement shall be the date of its execution by the State Department of Housing and Community Development . This agreement shall terminate 22 years after its effective date or when all loans to borrowers have been repaid and all funds collected from borrow- ers by contractor have been returned to the State pursuant to the terms of this aareement, whichever is sooner, except that this agreement shall be extended for additional increments of not more than Sixty (60) months to cover loans that are extended by the contractor with approval of the State and after approval by the Department of General Services. b. The contractor agrees to complete performance of its obligations under this agreement within the period stated in Item III of Attachment B. (1) 12. Promissory Note and Securitv a. The contractor agrees to execute an aqreement to assign deeds of trust, promissory note and loan agreement, on a form approved by the State, for each 'Property rehabilitated in whole or in part with funds from the Fund. b. Prior to lending funds received pursuant to this agreement, the contractor shall require the property owner to: ( i ) Execute a promissory note, at the appropriate rate of inter- est, and a loan agreement. Each document shall be in a form determined or approved by the State. ( i i ) Execute a deed of trust to secure said note, which shall be specifically assignable to the State. (iii ) Obtain, at the expense of the property owner or contractor on loans to borrowers of $5,000 or more, a Preliminary Title Report or acceptable alternative and a standard ALTA or CLTA Title insurance policy for the secured property, insurinq the State's interest as lender in said property. For loans under $5,000, a Preliminary Title Report or acceptable alternative shall be obtained for said property at the expense of the property owner or contractor. C. Prior to lendinq funds received pursuant to this aqreement, the contractor shall for each loan: ( i) Ensure that all required documents are properly completed, executed, and recorded; and ( ii ) Ensure that the combined value of existing encumbrances and the cost of rehabilitation and related expenditures shall not exceed 90 percent of the anticipated post-rehabilitation value of the residential structure. A valuation report on the property shall be prepared by the contractor or its agent containing values of at least three comparable proper- ties . No valuation report is necessary where the existinq and proposed encumbrances do not exceed 50 percent of tax assessors market value. (Must be documented. ) 13. Accounts a. If requested by the State, the contractor agrees to deposit all funds received under this agreement in a segregated account in an institution with deposits insured . by the Federal or the State government . b. The contractor further aqrees to establish on its books a Deferred- Payment Rehabilitation Loan Account which shall be maintained as long as the loan obligation to the State remains unsatisfied. c. The contractor further agrees to maintain records that accurately and fully show the date, amount, purpose, and payee of all expendi- tures drawn on said account . (2) d. The contractor further agrees to utilize a voucher system by which all expenditures from said account will be authorized and authenticated. e. The contractor further agrees to allow the State, on written request, to have reasonable access to and the right of inspecting all records that pertain to said account and agrees to submit to an independent audit, if this should be requested by the State, at the expense of the contractor. f. The contractor further agrees to adopt program accounting proce- dures in order to ensure that contractor 's disbursals are properly expended by or on. behalf of the property owner including establish- ing on-site inspections of rehabilitation and repairs, using pro- gress payments to owners and contractors, and incorporating other procedures commonly used by a reasonable and prudent lender. 14. Requests for Disbursals of Funds a. For each disbursal of funds from the Fund, the contractor agrees to submit, in duplicate and in a form determined by the State,. a writ- ten Request for Disbursal and to attach to said request any docu- ments required by the State. b. The contractor shall submit said request so as to be received by the State atleast twenty (20) working days prior to the contrac- tor 's need for the funds. C. If the Contractor has been awarded a grant for administrative expenses,. then Contractor shall utilize such funds only for the purposes permitted by 25 Cal . Administration Code Section 7415 and only in accordance. with the annual budget set forth in Item VI of the Attachment B.. Payment of the- said grant shall be in quarterly increments. Pay- ments may be made in advance, upon submission by Contractor to the State of a request for administrative grants on a form approved by the State. Contractor shall make such reports on the use of administrative grants as required by the State in conjunction with the quarterly reports on loan commitments as otherwise required by this Agreement. 15. Disbursals a.. The State agrees to provide disbursals based on requests from contractors, on forms provided by the State. With each request, the Contractor shall certify that the funds requested shall be used only for 'the purposes authorized by the statute,. regulations, and the loan agreement. (3.) b. The contractor shall provide disbursals to or on behalf of the borrower only if they pay for activities which are proper pursuant to this agreement and the loan aqreement with the borrower. 16. General Terms of Use of Funds a. Contractor shall not lend more than $10,000 of funds from the Fund on each dwelling unit repaired or rehabilitated, except that an additional amount up to $10,000 may be lent for room additions approved by the contractor in accordance with the State 's regula- tions. Contractor may use its own funds or other funds, in addi- tion to those from the Fund, if necessary to. complete any rehabili- tation or repair activity. In no circumstance shall the maximum deferred payment loan, plus other indebtedness against the proper- ty, exceed 90 percent of the anticipated after-rehabilitation value of the property. b. Funds from the Fund shall be used only for actual approved rehabil- itation and repair costs on each subject property and shall not be used for governmental administrative costs, overhead costs, costs of collection or foreclosure, or other non-rehabilitation or non- repair costs. c. The total loan commitment from the Fund shall be committed to borrowers by the contractor within one year from the effective date of this agreement unless, for good cause shown, the Department in writing, extends the period for loan commitment . Such extension may be for a maximum of one additional year. Failure by contractor to commit loans within the time permitted shall constitute a breach of this Agreement. d. Funds from the Fund shall not be substituted for local or other funds available to the contractor for similar purposes . In addi- tion, to the extent feasible, funds from the Fund shall be used with or as part of local funds available for similar activities . e. The contractor agrees to minimize the impact of physical rehabili- tation activities on tenants in a subject property to the extent feasible. To the extent feasible and where necessary to minimize displacement of tenants, rehabilitation activities, for example, shall include phased repairs, temporary or permanent relocation, or other similar measures as required by Government Code Section 7265.3. f. The contractor agrees not to discriminate in the use of funds from the Fund due, in whole or in part, to the. considerations, charac- teristics, or trends in the neighborhood surrounding the property to be rehabilitated with funds from the Fund unless the contractor can demonstrate that such consideration in the particular case is required to avoid an unsafe and unsound business practice. The contractor also agrees to comply with applicable truth-in-lending disclosure requirements. (4) g. Properties rehabilitated with loans pursuant to this aqreement must be located in CHFA Concentrated Rehabilitation Areas designated pursuant to Section 51302 of the Health and Safety Code; a Marks- Foran rehabilitation area designated pursuant to the Health and Safety Code commencing with Section 37910; an area in which CHFA has allocated funds pursuant to Section 51311 of the Health and Safety Code; a CHFA Mortgage Assistance Area (MAA), provided such area is located in a rural area; or, for low income households only, areas in which contractor is undertaking a rehabilitation or code enforcement program for which Federal funds are, or will be, used in connection with funds from the Fund. h. No more than one loan of funds from the Fund shall be made for any one residential unit. i . Loans from the contractor to the borrower shall bear simple inter- est at the rate of 3 percent per annum on the principal balance from the time of disbursal by the contractor until repayment to the contractor unless interest is waived or reduced pursuant to para- graph 10 b. of this agreement. j . Loans to borrowers shall be for a term of five years or until sale or transfer of the property, whichever occurs first. k. Loans to borrowers may be used to finance innovative and/or cost- efficient methods or rehabilitation including "self-help," rehabil- itation with trainee labor, etc. 1 . Loan agreements with local borrowers shall include all provisions required by law and the regulations governing this program. m. The contractor shall establish procedures to monitor and service the loans herein, including but not limited to: ( i ) Enforcing conditions of this agreement and the loan agreement between contractor and the local borrower; ( ii) Assuring that real estate taxes and assessments are paid on time and that fire and extended coverage insurance is in effect at all times; ( iii) Preventing or rectifying waste or abnormal deterioration of the security property; ( iv) Assuring proper notification to the State in matters of loan repayment and other requirements of this agreement;. (v) Processing, investigating, and making recommendations to the State with respect to local borrowers ' requests for exten- sions of loans; and (5) (vi ) Preparing and reporting to the State recommendations with respect to assumptions of loans by eligible owner to whom the improved property is transferred or conveyed. n. The State may review and approve the proposed commitment by con- tractor to an owner-occupied borrower prior to the contractor 's commitment of a loan. o. Contractor agrees to inspect property improved to ensure proper work performance and code compliance. p. Funds provided to contractor in the form of grants for administra- tive costs, if any, shall be used only pursuant to the terms for such grants set forth in Attachment 8, Items V and VI . 17. Terms of Loans to Owner-Occupants a. The contractor shall only lend funds from the Fund to low or moderate income owner-occupants of the residential unit to be rehabilitated except that loans for property located in areas where only Federal funds are being used will be restricted to low income households. b. Loans of funds from the Fund shall be limited to the amount neces- sary to cover the cost of meeting rehabilitation standards which cannot be financed by a combination of funds otherwise available without exceeding the borrower's ability to afford shelter costs. ' c. Notwithstanding paragraph 16 j . of this agreement, loans to elderly owner-occupant borrowers or to those who become elderly during the term of the loan shall be repayable to the contractor only upon sale or transfer of the property securing the loan. d. Notwithstanding paragraph 16 j . of this agreement, the contractor shall renew a loan for additional five-year terms, after State approval , if the borrower has remained an occupant of the property rehabilitated and is unable to refinance the loan then due for repayment. Contractor shall renew loans subject to this paragraph only for one five-year term at a time. e. Borrowers shall agree that units other than that occupied by the borrower shall be rented in accordance with the requirements of Paragraph 18, of this Agreement. f. An owner-occupant borrower shall receive no more than one loan of funds from the Fund. 18. Terms of Loans to Owners of Rental Properties a. The contractor shall only lend funds from the Fund to owners of rental residential properties in which a significant number of the units are either occupied by low-income households or are vacant. (6) • i b. Loans of funds from the Fund shall be limited to that amount necessary to avoid increases in debt service which would either cause rents to be not affordable to low-income tenants residing on the premises, thereby resulting in permanent displacement, or make it infeasible to use rent subsidies in order to provide affordable rents to low-income and very-low income households. c. The property owner receiving funds from the Fund shall agree, on a form approved by the State, prior to receiving funds, to limit rents and rent increases and to abide by the Tenancy Standards and Procedures set forth at Sections 7412 (e) and 7416, as amended from time-to-time, of the regulations incorporated herein for the term of the original loan agreement. Said requirements shall be set forth in the loan agreement between the contractor and the local borrower and shall be approved by the State. d. Notwithstanding paragraph 16 j . of this agreement; the contractor may renew the loan for a five-year period if the contractor reason- ably determines that low-income occupant households will continue to receive affordable rents and otherwise benefit from residency in the rehabilitated units. Contractor shall only renew such loans for one five-year term at a time unless multiple five-year periods are essential to the feasibility of continuing benefits to lowincome households. A maximum of' three five-year renewal periods are permitted. e. Prior, to making a loan commitment to a local borrower, contractor shall forward the loan application and loan document package to the State's coordinator for this agreement. Each such loan,. and any extension or renewal thereof, must be approved by the State prior to a loan commitment, extension or renewal being made by the contractor to the borrower. 19. Repayment a. Any loan repaid by or on behalf of a local borrower to the contrac- tor shall be repaid promptly by the contractor to the State. b. Any loan funds disbursed to contractor and not loaned to a local borrower within three months after disbursal to the contractor, shall be, repaid to the State.. c. When repayment of the full loan is made,, the State agrees to recon- vey any security in any real property.. d.. The contractor- agrees that neither failuret to obtain any required permits,. necessary subsidies, services, or 'financing,. nor any other cause,, releases the contractor from its obligations to the State to pursue all appropriate remedies, including foreclosure; in the event of default under the note or loan agreement by the local bor- rower.. In- the event of foreclosure, repayment to the State shall (7) be limited to proceeds available from the sale of the property benefiting from funds from the Fund after repayment of superior encumbrances . e. The loan agreement between contractor and the local borrower shall contain terms of repayment which comply with the law and requla- tions governing this program and shall be prepared by or approved by the State in form and substance. 20. Default a. In the event the contractor, for any reason, is unable to proceed with the rehabilitation activities approved by the State, the State may declare this agreement to have been breached and shall be released from any further performance hereunder . b. In the event of any default or breach of the agreement by the contractor, the State may declare any disbursements to contractor from the State to be immediately due and payable. In said event, the contractor agrees voluntarily to convey to the State all rights, title, and interest in any property securing the note and further agrees to convey all rights, title, and interest in all reports, tests, surveys, drawings, plans, maps, and other documents which are the product of funds disbursed under this agreement, which voluntary conveyance does not necessarily constitute full satisfaction of the obligation .of the contractor to the State. c. Notwithstanding paragraph 19 d . , if the State must undertake the foreclosure of security or other reasonable collection activities, contractor shall be liable for any such costs not reimbursed by the security. d. In the event there is a default in repayment by a local borrower or a violation by the local borrower of the loan agreement between a local borrrower and contractor, contractor shall act promptly to ensure repayment or compliance with the loan agreement between the local borrower and the contractor. Any costs thus incurred by con- tractor shall not affect contractor 's duty of repayment to the State of any disbursements made herein, subject to proceeds obtained from the borrower or the security. 21. Reporting a. Every three (3) months from the effective date of this agreement until such time as all funds have been loaned to borrowers pursuant to their agreement, or more often if reasonably required by the State, contractor agrees to submit to the State a narrative and financial report that details the progress made on lending, rehabilitation, and occupancy activities to date; the amount of loan funds the contractor is likely to request during the next three (3) months; the amount of repayment the contractor is likely tomake during the next three (3) months; any problems the (8) contractor is experiencing in program activities ; any technical assistance the contractor needs to accelerate or improve the program; and any other proqram information that may be required by the State. The State shall provide the contractor with the format for the reports . b. At least once each year, in a form and at a time provided for by the State, the contractor shall provide such information requested by the State with respect to summarizing all rehabilitation activi- ties so as to assure compliance with this agreement . This report shall comprise the fourth quarterly report referred to under subparagraph a. c. At a time specified by the State, the contractor agrees to submit a statistical report to the State which details the number of units assisted with the loan, the estimated rehabilitation costs, the units costs, and other relevant information requested by the State. d. Contractor agrees to grant the State permission and to obtain borrower and occupant permission in each instance to enter and inspect properties subject to this agreement and to inspect all records of the contractor relating to compliance with this agreement. e.. Contractor shall retain originals of all records related to use of funds from the Fund. Copies only shall be forwarded to the State when required or requested. 22. Special Clearance a. To the extent necessary, the contractor shall satisfy the State that all of the requirements of the California Environmental Quality Act have been fulfilled and that appropriate permits from the- California Coastal Commission have been obtained when required on local rehabilitation activities. b. The contractor agrees that satisfaction of the requirements of this paragraph- shall be preconditions for any disbursal of funds here- under-. 23. Technical Assistance In the event the contractor experiences difficulty in progressing with the rehabilitation activities approved by the State,. the contractor agrees to notify the State promptly of the difficulty and to accept whatever technical assistance the State may, at its option, be able to provide. 24. Fair Employment Practices The contractor agrees to comply with all the conditions required by the Cal-ifornia Fair Employment Practices Addendum, Standard Form 3, which is identified. as Attachment. C. attached hereto,. and made a part hereof'. (9) 25. State Coordinator The State coordinator for this agreement is Ken Williams, Deferred- Payment Loan Program Manager. 26. Special Conditions a. In addition to the general provisions of this agreement, the special conditions set out in Item V of Attachment B must be satisfied before the State will advance any funds hereunder . b. Satisfaction of the aforesaid special conditions must be in a manner specified by or acceptable to the State. RS#7/1 (10) C�W,ra Gns;t,�i County {1ITACIIMI.N1 13 • ITEM I Loan Amount (Paragraph 9a) Contra Costa County $50,000 City of Antioch 25,000 City of Brentwood 25,000 City of Martinez 25,000 ITEM II Authorized Purposes (Paragraph 9b) Purpose Contractor to make Deferred-Payment Rehabilitation Loans in accordance with the program regulations 25 Admin. C. Sections 7400-7436, as may be amended from time-to-time and Contractor's Loan Application No . 80-HRL-11. ITEM III Completion Date (Paragraph 11a) This Agreement shall terminate 22 years after its effective date or when all loans to borrowers have been repaid and all funds collected from borrowers by contractor have been returned to the State pursuant to the terms of the Agreement, whichever is sooner, except that this Agreement shall be extended for additional incre- ments of not more than sixty (60) months to cover loans that are extended by contractor with approval of the State and after approval by the Department of General Services. ITEM IV Security (Paragraph 12a) Contractor agrees to execute the "Agreement to Assign Deeds of Trust, Promissory Note and Loan Agreement" between the contractor and the State. ITEM V Special Conditions (Paragraph 26a) a. Contractor shall submit an executed copy of a Resolution of the contractor 's governing body, authorizing the execution of a Stan- dard Agreement, an Agreement to Assign Deeds of Trust, Promissory Note and Loan Agreement, and other documents to secure a Deferred Payment Loan from the State of California and appointing an indi- vidual authorized to execute all documents on the contractor 's behalf. b. For Contra Costa County, Antioch, Brentwood and Martinez. Contra Costa County will enter into one Standard Agreement to administer the awards for all of the jurisdictions . The three cities would be required to submit resolutions from their governing bodies transferring all responsibilities of the State Deferred Loan Program to Contra Costa County. c. Loan amounts to the County and Cities shall not exceed those listed in Item 1. ITEM VI Non-profits and Grantees of Administrative Funds H#10/1 Calilorni,i I1rporLim'nl. nl" Ilnuf. iml '1114 ( n,uIII niI.y OeveIouiIt'nl. D_e`ferr_ed Pdyment Reha1)i 1 i ta_tion Program — APPLICArION 1jIICD/D1)Ri'-Ahp1ic,Ition No. Date Received: // ��� 60 N1 7 U11CD Use Only G. � 1 . GENERAL Official Name of Local Entity: Contra Costa County Address : P.O. Box 951, M_a_rtinez, CA94553 Street _ — City County State ZIP Contact Person : James Kenner — Phone: (_415 ) 372-2035 — — 2. LOAN REQUEST Total State Deferred Loan Funds Requested: 5150,000 Estimated Amount of Other Funds Available for use with State .C ,ferred Funds : $ 1,000,000 Source of Other Funds: —__CDBG, 312, FmHA 502 & 504, Private Financial Funds_____.___ - 3. ELIGIBILITY CATEGORY (Select Only One) f This proppsaI is submitted under. the following eligibility category: _X (a ) Local public entity with CHFA Concentrated Reha 1)i I i ta t i on Area(s (b) Local public entity with a Marks/Foran residential rehabilitation financing program. `(c) Code enforcement agency as covered in 50663(d) Health and Safety Code. _(d) Local pub Iic entity conducting a housing rehabilitation program in a rural CHFA Mortgage Assistance Area. X (e) Local public entity conducting a housing rehabilitation or code enforcemant program in an area in which federal funds_ are used or will be used in con- junctinn with this program. `(f) Nonprofit Corporation conducting a housing rehabilitation program in a rural CHFA i.lortgage Assistance Area. (9) Nonprofit Corporation conducting a housirig rehabilitation or code enforcement program in an area in which federal funds are used or wiil be used in con- junction with this program. 4. CERTIFICATION AND F_XECUTION i hereby certify that the st.ntefrienl:s , facts , and inlorrnat.iun contained in this applica- tion and the documents and attachments submitter) herewith are true and correct to the best of my knowledge and belief. JUN 171980 By (Authorized Signature) ,rIA ruRl_ Chairman, Board of Supervisors. ' • ATTACHMENT C • FAIR EMPLOYMENT PRACTICES ADDENDUM 1. In the performance of this contract, the Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, sex*, age*, national origin, or physical handicap*. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, ancestry, sex*, age*, national origin, or physical handicap*. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising;layoff or termination; rates of pay or other forms of compen- sation; and selection for training,,including apprenticeship. The Contractor shall post in conspicuous places, avail- able to employees and applicants for employment, notices to be provided by the State setting forth the provisions of this Fair Employment Practices section. 2. The Contractor will permit access to his/her records of employment, employment advertisements, applica- tion forms, and other pertinent data and records by the State Fair Employment Practices Commission, or any other agency of the State of California designated by the awarding authority, for the purpose of investigation to ascertain compliance with the Fair Employment Practices section of this contract. 3. Remedies for Willful Violation: (a) The State may determine a willful violation of the Fair Employment Practices provision to have occurred upon receipt of a final judgement having that effect from a court in an action to which Contractor was a party, or upon receipt of a written notice from the Fair Employment Practices Commission that it has investigated and determined that the Contractor has violated the Fair Employ-- ment Practices Act and has issued an order, under Labor Code Section 1426, which has become-finai, or obtained an injunction under Labor Code Section 1429. (b) For willful violation of this. Fair Employment Practices provision, the State: shall have the right to terminate this contract either in whole or in part, and any loss or damage sustained by the State in securing the,goods or services hereunder shall be borne and paid for by the Contractor and by his/her surety under the performance-bond, if any, and the State may deduct from any moneys due or that thereafter may become due to.the Contractor, the difference between the price named in the contract and the actual cost thereof to the State. *See Labor Code Sections 1411 -1432.5 for further details. Bro. ] (8/77) 5495?-7o 73 it CONTRA COSTA COUNTY PLANNING DEPARTMENT TO: M.G. Wingett DATE: March 20, 1981 County Administrator Authorizing Execution of an Amended FROM: Anthony A. Dehaesus' SUBJECT: Standard Agreement for the State Director of Plannin/ Deferred Payment Rehabilitation J' Loan Program +IG On January 20, 1981 the Board authorized the execution of a Standard Agreement and other necessary documents to implement a deferred pay- ment housing rehabilitation loan program using funds borrowed from the State. Said documents were submitted to the State for processing and execution. The State Department of General Services, after reviewing the documents requested that all localities statewide amend the Standard Agreement to reflect a definite termination date. (See Section 11 of the Stand- ard Agreement) . The effect of this change is moot due to the fact that provisions remain for extending the term of the contract if neces- sary to assure continued ,implementation. I recommend that you place this matter before the Board for their con- sideration and approval . County Counsel has approved the revised Standard Agreement. A draft Board Order is attached for your use. AAD:jl Attachment C». or DOT C C`-•-. 4 ul - If In the Board of Supervisors of Contra Costa County, State of California January 90 • 198, In the Matter of Authorizing Execution of Certain Documents to Secure a Deferred Payment Rehabilitation Loan from the State of California WHEREAS, pursuant to Sections 50660 - 50670 of the California Health and Safety Code, the California Department of Housing and Community Development (hereinafter referred to as the State) is authorized to provide funds for the rehabilitation of housing in designated areas; and WHEREAS, Contra Costa County, a local public agency organized under the statutes of the State of California, is enabled and eligible to receive said loans; NOW THEREFORE IT IS BY THE BOARD ORDERED that the County is hereby authorized to enter into a Standard Agreement with the State to borrow a total amount not to exceed $125,000, to be used by itself and on behalf of those cities set forth in the Standard Agreement for purposes of lending deferred payment loans for housing rehabilitation. IT IS FURTHER ORDERED that the County is hereby AUTHORIZED to give appropriate instruments to the State as evidence of said debt, and that the Chairman is hereby AUTHORIZED to execute in the name of the County said Standard Agreement, and other documents required to consumate this transaction. IT IS FURTHER ORDERED that the Director of Building Inspection or his designate is hereby authorized to execute all documents required to make and record each individual loan under this program to program participants. PASSED BY THE BOARD ON January 20, 1981, by the following vote: AYES: Supervisors Fanden, McPeak, Torlakson, Powers NOES: None ABSENT: Supervisor Schroder I hereby certify that the foregoing is a true and correct copy of an order entered on the minutes of said Board of Supervisors on the date aforesaid. Orig.: Planning. Witness my hand and the Seal of the Board of cc: Building Inspection Supervisors (Z County Administrator affixed this a0 day of u<« 19 'F Auditor n � J. R. OLSSON, Clerk By Y << . Deputy Clerk H -24 4/77 15m 'I AGREEMENT TO ASSIGN 0 DEED OF TRUST, PROMISSORY NOTE AND LOAN AGREEMENT FOR VALUE RECEIVED the receipt and sufficiency of which is hereby acknowledged, Conira Costa County , hereinafter "Local Lender," agrees to assign to the STATE OF CALIN , ARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, hereinafter, "Department," at such a time as a default or breach is declared with respect to Local Lender 's responsi- bilities under the Loan Agreement between Local Lender and Department dated 19 or on the date Local Lender terminates its activities pursuant to such Agreement, all Promissory Notes, Loan Agreements, and Deeds of Trust demanded by Department which are evidence of all loans, or represent security therefor, to local borrowers made by Local Lender with funds received from Department pursuant to the Deferred-Payment Rehabilitation Loan Program. SAID PROMISSORY NOTES, LOAN AGREEMENTS AND DEEDS OF TRUST cannot be specifically identified in this document, but records of same shall be maintained by Local Lender and Department. THIS AGREEMENT is entered into for purposes of security on the Standard Agreement between Local Lender and Department, dated , 19 and shall be cancelled upon full performance of all terms of said tan- da7 Agreement. Notwithstanding the terms of this Agreement, any Promissory Notes, Loan Agreements and Deeds of Trust obtained by Local Lender as security for a Deferred-Payment Loan Program loan to a local borrower shall be can- celled and reconveyed upon repayment to Local Lender by a local borrower and repayment of said sum, including interest, by Local Lender to Department. THE ASSIGNMENTS made pursuant to this Agreement shall be with recourse and Local Lender agrees, represents, warrants, and covenants as follows : 1. Upon default or termination of activities, or anticipation of same, if earlier, to execute any documents necessary to Department 's acquisition of and ability to exercise or assign the Promissory Notes, Loan Agreements and Deeds of Trust granted by local borrowers to Local Lender . 2. To perform all duties and responsibilities pursuant to said Promis- sory Notes, Loan Agreements and Deeds of Trust, and in the event of any fail - ure to perform such responsibilities, to notify Department immediately and in writing of any anticipated or actual failure to perform. 3. To not sell , assign, transfer, or otherwise convey its rights or responsibilities pursuant to said Promissory Notes, Loan ,Agreements and Deeds of Trust to any other person or entity. 4. To appear in and defend any action or proceeding affecting or pur- porting to affect said Promissory Notes, Loan Agreements, and Deeds of Trust or the real property subject thereto, and/or commence any action or proceeding deemed necessary by Local Lender or Department to perfect, maintain, or pro- tect said Promissory Notes, Loan Agreements and Deeds of Trust and the inter- ests, rights, powers, and/or duties pursuant thereto, all in such manner and to such extent as is appropriate, and to give prompt notice to Department of such activities. 11/21/80 Agreement to Assiab 0 Pace 2 5. That it has no knowledge of any fact or law which would impair the validity or enforceability of this Aqreement and has the lawful and unquali- fied right to assign the Promissory Notes, Loan Aareements, and Deeds of Trust to Department. 6. That, in the event of a default or violation of any of the warran- ties, covenants, terms, and conditions of this Agreement, a remedy at law may not provide adequate relief to the Department and that the Department shall be entitled to temporary and permanent injunctive or other equitable relief in case of any such breach, without the necessity of proving actual damages . 7. That, in the event of default in this Agreement by Local Lender, Department shall be entitled to reasonable attorneys ' fees and litigation costs incurred in the enforcement of this Agreement or the subject thereto . - PURSUANT TO this Agreement, Department agrees that upon Local Lender 's default or termination of activities, whichever is earlier, it shall accept assignment and undertake and perform the obligations of Local Lender under said Deeds of Trust. ON THE OCCURRENCE of any event of default, Department, at its sole election, may declare the Assignment due, and demand, presentment and dili- gence in bringing suit is hereby waived. No delay or failure of Department in the exercise of any right or remedy hereunder or under any other agreement shall affect any such right or remedy, and no single or partial exercise of any such right shall preclude any further exercise thereof, and no action taken or omitted by Department shall be deemed a waiver of any such right or remedy. THIS AGREEMENT shall be binding upon and enure to the benefit of the parties hereto and their respective heirs, successors, representatives, and assions. Time is of the essence in this Agreement. THIS AGREEMENT shall be effective when duly executed by both parties and on the date signed by the second party hereto . DATED: January 20 1�1 By� C irma�L�oar�o upervisors J. R. OLSSON, Clerk Attest: BV 7lL uDeputy Cle;* itle DATED: 19 By tate of California) Attest: Title RH#5/1 11/21/80 ❑ CONTRACTOR STANDARD AGREEMENT — ATTo°•GBy THE ENERAL STATE OF,CALIFORNIA 1JI STATE AGENCY S TRJ. 2 (REV. 11/75) ❑ DEPT. OF GEN. SER. ❑ CONTROLLER THIS AGREEMENT, made and entered into this 8th day of December 19 80 ❑ in the State of California, by and between State of California, through its duly elected or appointed, ❑ qualified and acting ❑ TITLE OF OFFICRR ACTING FOR STATE AGENCY NUMBER Director Department of Housing and Community Development 80-HRL-11 hereafter called the State, and Contra Costa County hereafter called the Contractor. WITNESSETH: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State hereinafter expressed, does hereby agree to furnish to the State services and materials, as follows: (Set forth service to be rendered by Contractor,amount to be paid Contractor,time for performance or completion,and attach plans and specifications,if any.) Authority a. Pursuant to the criteria for eligibility and for the purposes authorized by Sections 50660-50670 of the California Health and Safety Code and the regulations published there- under (at 25 Cal . Admin. C. Sections 7400-7436), the contractor has submitted to the State a Deferred-Payment Rehabilitation Loan Application No. 80-HRL-11, which is hereby incor- porated as Attachment A and made a part of this agreement. b. Pursuant to the above sections and regulations, the State has approved Commitment No. 80-HRL-11 to permit contractor to loan funds to local borrowers for rehabilitation and provision of housing pursuant to Sections 50665-50670 of the California Health and Safety. Code. c. To effect said loan, the State has decided to enter into this agreement with the contrac- tor according to the conditions hereinafter expressed. All references to "the Fund" shall refer to the Housing Rehabilitation Loan Fund of the Department of Housing and Community Development. This agreement incorporates and is subject to the laws and regulations cited The provisions on the reverse side hereof constitute a part of this agreement. IN WITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date.first above written. STATE OF CALIFORNIA CONTRACTOR AGENCY O NTRACTOR IF OTH R THAN AN INDIVIDUAL, STATE WHETHER A CORPORATION P RTusing and CommunitY Dpvelopmen : �on1P dos C unty BY IA THORIZED SIGNATURE) BY (AUT ED (GNAT 1 II• I, TITLE TITLE hairman, Board of Supervisors ADDRESS (CONTINUED ON SHEETS, EACH BEARING NAME OF CONTRACTOR) P.O. Box 951 Martinez, CA 94553 Department of General Services AMOUNT ENCUMBERED APPROPRIATION FUND Housing Rehab. Use ONLY 125,000 Loan Fund UNENCUMBERED BALANCE ITEM CHAPTER STATUTES FISCAL YEAR 929-455-713-001-00 1980-81 ADJ. INCREASING ENCUMBRANCE FUNCTION $ 929,303 ADJ. DECREASING ENCUMBRANCE LINE ITEM ALLOTMENT I hereby certify upon my own personal knowledge that budgeted funds T.B.A. No. a.R. N o. are available for the period and purpose of the expenditure stated shove. SIGNATURE OF ACCOUNTING OFFICER DATE II, 1 hereby certify that all conditions for exemption set forth in State Administrative Manual Section 1209 have been complied with and this document is exempt from review by the Deportment of Finance. SIGNATURE OF OFFICER SIGNING ON BEHALF OF THE AGENCY DATE II► 1. The Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, materialmen, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of this contract, and from any and all Claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by the Contractor in the performance of this contract. 2. The Contractor, and the agents and employees of Contractor, in the performance of this agreement, shall act in an independent capacity and not as officers or employees or agents of State of California. 3. The State may terminate this agreement and be relieved of the payment of any consideration to Contractor should-Contractor fail to perform the covenants herein contained at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed•proper by the State. The cost to the State shall be deducted from any sum due the Contractor under this agreement, and the balance, if any, shall be paid,the •Contractor upon demand. 4. Without the written consent of the State, this agreement is not assignable by Contractor either in whole or in part. 5. Time is the essence of this agreement. G. No alteration or variation of the terms of this contr1ct shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, shall be binding on any of the parties hereto. 7. The considerati6n to be paid Contractor, as provided herein, shall be in compensation for all of Contractor's expenses incurred in the performance hereof, including travel and per diem, unless otherwise expresslytso provided. r Contra Costa County 8. Purpose The contractor agrees to expend all funds disbursed pursuant to this agreement only for the purposes and in the amounts that have been set forth in its application and to the extent they have been approved by the State. Contractor further agrees to solicit and approve local borrowers in accordance with the laws and regulations governing this program. 9. Amount and Disbursement Schedule a. Upon receipt of a certified resolution authorizinq this agreement and the proper execution of the appropriate security instruments, the State agrees to disburse to the contractor or its authorized agent funds not to exceed the total amount stated in Item I of Attachment B. b. The State further agrees to disburse said funds only for the approved purposes and itemized amounts stated in Item II of Attachment B. 10. Interest a. The loan herein shall bear simple interest at the rate of three percent (3%) per year on the principal balance of loan funds dis- bursed to the contractor. Payment of said interest shall be due at the time of repayment of the loan to the State, and shall accrue from the time of disbursal by contractor to the borrower until receipt of repayment by contractor. b. Interest shall be waived if and to the extent that the contractor remits in advance to the State a sum equal to and not less than 15 percent of the original principal amount of the loan . Prepay- ment of any portion or all of such a loan shall not entitle con- tractor the return of any such prepaid interest . 11. Term a. The effective date of this agreement is January 15, 1981, subject to its approval by the State of California, Department of General Services. Where State law does not require this aqreement to be approved by the Department of General Services , the effective date of this agreement shall be the date of its execution by the State Department of Housing and Community Development . This agreement shall terminate when all loans to borrowers have been repaid and all funds collected from borrowers by contractor have been returned to the State pursuant to the terms of this agreement . 12. Promissory Note and Security a. The contractor agrees to execute an agreement to assign deeds of trust, promissory note and loan agreement, on a form approved by (1) I the State, for each property rehabilitated in whole or in part with funds from the Fund. b. Prior to lending funds received pursuant to this aqreement, the contractor shall require the property owner to: ( i ) Execute a promissory note, at the appropriate rate of inter- est, and a loan agreement . Each document shall be in a form determined or approved by the State. ( i i ) Execute a deed of trust to secure said note, which shall be specifically assignable to the State. (iii ) Obtain, at the expense of the property owner or contractor on loans to borrowers of $5,000 or more, a Preliminary Title Report or acceptable alternative and a standard ALTA or CLTA Title insurance policy for the secured property, insuring the State's interest as lender in said property. For loans under $5,000, a Preliminary Title Report or acceptable alternative shall be obtained for said property at the expense of the property owner or contractor . C . Prior to lending funds received pursuant to this aqreement, the contractor shall for each loan : ( i ) Ensure that all required documents are properly completed, executed, and recorded; and ( ii ) Ensure that the combined value of existing encumbrances and the cost of rehabilitation and related expenditures shal.l not exceed 90 percent of the anticipated post-rehabilitation value of the residential structure. A valuation report on the property shall be prepared by the contractor or its agent containing values of at least three comparable proper- ties . No valuation report is necessary where the existing and proposed encumbrances do not exceed 50 percent of tax assessors market value. (Must be documented. ) 13. Accounts a. If requested by the State, the contractor agrees to deposit all funds received under this agreement in a segregated account in an institution with deposits insured by the Federal or the State government . b. The contractor further aqrees to establish on its books a Deferred- Payment Rehabilitation Loan Account which shall be maintained as long as the loan obliqation to the State remains unsatisfied. c. The contractor further agrees to maintain records that accurately and fully show the date, amount, purpose, and payee of all expendi- tures drawn on said account . (2) Contra Costa County d. The contractor further agrees to utilize a voucher system by which all expenditures from said account will be authorized and authenticated. e. The contractor further agrees to allow the State, on written request, to have reasonable access to and the right of inspecting all records that pertain to said account and agrees to submit to an independent audit, if this should be requested by the State, at the expense of the contractor. f. The contractor further agrees to adopt program accounting proce- dures in order to ensure that contractor 's disbursals are properly expended by or on behalf of the property owner including establish- ing on-site inspections of rehabilitation and repairs, using pro- gress payments to owners and contractors, and incorporating other procedures commonly used by a reasonable and prudent lender. 14. Requests for Disbursals of Funds a. For each disbursal of funds from the Fund, the contractor aqrees to submit, in duplicate and in a form determined by the State, a writ- ten Request for Disbursal and to attach to said request any docu- ments required by the State. b. The contractor shall submit said request so as to be received by the State at least twenty (20) working days prior to the contrac- tor 's need for the funds . C. If the Contractor has been awarded a grant for administrative expenses, then Contractor shall utilize such funds only for the purposes permitted by 25 Cal . Administration Code Section 7415 and only in accordance with the annual budoet set forth in Item VI of the Attachment B. Payment of the said grant shall be in quarterly increments . Pay- ments may be made in advance, upon submission by Contractor to the State of a request for administrative grants on a form approved by the State. Contractor shall make such reports on the use of administrative grants as required by the State in conjunction with the quarterly reports on loan commitments as otherwise required by this Aqreement . 15. Disbursals a. The State agrees to provide disbursals based on requests from contractors, on forms provided by the State. With each request, the Contractor shall certify that the funds requested shall be used only for the purposes authorized by the statute, regulations, and the loan agreement. (3) i b. The contractor shall provide disbursals to or on behalf of the borrower only if they pay for activities which are proper pursuant to this agreement and the loan aqreement with the borrower. 16. General Terms of Use of Funds a. Contractor shall not lend more than $10,000 of funds from the Fund on each dwelling unit repaired or rehabilitated, except that an additional amount up to $10,000 may be lent for room additions approved by the contractor in accordance with the State 's regula- tions . Contractor may use its own funds or other funds, in addi- tion to those from the Fund, if necessary to complete any rehabili- tation or repair activity. In no circumstance shall the maximum deferred payment loan, plus other indebtedness against the proper- ty, exceed 90 percent of the anticipated after-rehabilitation value of the property. b. Funds from the Fund shall be used only for actual approved rehabil- itation and repair costs on each subject property and shall not be used for governmental administrative costs, overhead costs, costs of collection or foreclosure, or other non-rehabilitation or non- repair costs . . c . The total loan commitment from the Fund shall be committed to borrowers by the contractor within one year from the effective date of this agreement unless, for good cause shown, the Department in writing, extends the period for loan commitment . Such extension may be for a maximum of one additional year. Failure by contractor to commit loans within the time permitted shall constitute a breach of this Agreement . d . Funds from the Fund shall not be substituted for local or other funds available to the contractor for similar purposes . In addi- tion, to the extent feasible, funds from the Fund shall be used with or as part of local funds available for similar activities . e. The contractor agrees to minimize the impact of physical rehabili- tation activities on tenants in a subject property to the extent feasible. To the extent feasible and where necessary to minimize displacement of tenants, rehabilitation activities, for example, shall include phased repairs, temporary or permanent relocation, or other similar measures as required by Government Code Section 7265.3. f. The contractor agrees not to discriminate in the use of funds from the Fund due, in whole or in part , to the considerations, charac- teristics, or trends in the neighborhood surrounding the property to be rehabilitated with funds from the Fund unless the contractor can demonstrate that such consideration in the particular case is required to avoid an unsafe and unsound business practice. The contractor also agrees to comply with applicable truth-in-lending disclosure requirements . (4) Contra Costa County g. Properties rehabilitated with loans pursuant to this agreement must be located in CHFA Concentrated Rehabilitation Areas designated pursuant to Section 51302 of the Health and Safety Code; a Marks- Foran rehabilitation area designated pursuant to the Health and Safety Code commencing with Section 37910; an area in which CHFA has allocated funds pursuant to Section 51311 of the Health and Safety Code; a CHFA Mortgage Assistance Area (MAA), provided such area is located in a rural area; or, ' for low income households only, areas in which contractor is undertaking a rehabilitation or code enforcement program for which Federal funds are, or will be, used in connection with funds from the Fund. h. No more than one loan of funds from the Fund shall be made for any one residential unit . i . Loans from the contractor to the borrower shall bear simple inter- est at the rate of 3 percent per annum on the principal balance from the time of disbursal by the contractor until repayment to the contractor unless interest is waived or reduced pursuant to para- graph 10 b. of this agreement . j . Loans to borrowers shall be for a term of five years or until sale or transfer of the property, whichever occurs first . k . Loans to borrowers may be used to finance innovative and/or cost- efficient methods or rehabilitation including "self-help, " rehabil- itation with trainee labor, etc. 1 . Loan agreements with local borrowers shall include all provisions required by law and the regulations governing this program. m. The contractor shall establish procedures to monitor and service the loans herein, including but not limited to: ( i ) Enforcing conditions of this agreement and the loan agreement between contractor and the local borrower; ( ii ) Assuring that real estate taxes and assessments are paid on time and that fire and extended coverage insurance is in effect at all times; ( iii ) Preventing or rectifying waste or abnormal deterioration of the security property; ( iv) Assuring proper notification to the State in matters of loan repayment and other requirements of this agreement; (v) Processing, investigating, and making recommendations to the State with respect to local borrowers ' requests for exten- sions of loans ; and (5) (vi ) Preparing and reporting to the State recommendations with respect to assumptions of loans by eligible owner to whom the improved property is transferred or conveyed. n . The State may review and approve the proposed commitment by con- tractor to an owner-occupied borrower prior to the contractor 's commitment of a loan . o . Contractor agrees to inspect property improved to ensure proper work performance and code compliance. p. Funds provided to contractor in the form of qrants for administra- tive costs, if any, shall be used only pursuant to the terms for such grants set forth in Attachment 8, Items V and VI . 17. Terms of Loans to Owner-Occupants a. The contractor shall only lend funds from the Fund to low or moderate income owner-occupants of the residential unit to be rehabilitated except that loans for property located in areas where only Federal funds are being used will be restricted to low income households. b. Loans of funds from the Fund shall be limited to the amount neces- sary to cover the cost of meeting rehabilitation standards which cannot be financed by a combination of funds otherwise available without exceeding the borrower 's ability to afford shelter costs. c . Notwithstanding paragraph 16 j . of this agreement , loans to elderly- owner-occupant borrowers or to those who become elderly during the term of the loan shall be repayable to the contractor only upon sale or transfer of the property securing the loan . d. Notwithstanding paragraph 16 j . of this agreement , the contractor shall renew a loan for additional five-year terms, after State approval , if the borrower has remained an occupant of the property rehabilitated and is unable to refinance the loan then due for repayment. Contractor shall renew loans subject to this paragraph only for one five-year term at a time. e. Borrowers shall agree that units other than that occupied by the borrower shall be rented in accordance with the requirements of Paragraph 18, of this Agreement . f . An owner-occupant borrower shall receive no more than one loan of funds from the Fund. 18. Terms of Loans to Owners of Rental Properties a. The contractor shall only lend funds from the Fund to owners of rental residential properties in which a significant number of the units are either occupied by low-income households or are vacant . (6) Contra Costa County b. Loans of funds from the Fund shall be limited to that amount necessary to avoid increases in debt service which would either cause rents to be not affordable to low-income tenants residing on the premises, thereby resulting in permanent displacement, or make it infeasible to use rent subsidies in order to provide affordable rents to low-income and very-low income households. c. The property owner receiving funds from the Fund shall agree, on a form approved by the State, prior to receivinq funds, to limit rents and rent increases and to abide by the Tenancy Standards and Procedures set forth at Sections 7412 (e) and 7416, as amended from time-to-time, of the regulations incorporated herein for the term of the original loan agreement. Said requirements shall be set forth in the loan agreement between the contractor and the local borrower and shall be approved by the State. d. Notwithstanding paraqraph 16 j . of this agreement, the contractor may renew the loan for a five-year period if the contractor reason- ably determines that low-income occupant households will continue to receive affordable rents and otherwise benefit from residency in the rehabilitated units. Contractor shall only renew such loans for one five-year term at a time unless multiple five-year periods are essential to the feasibility of continuing benefits to lowincome households. A maximum of three five-year renewal periods are permitted. e. Prior to making a loan commitment to a local borrower, contractor shall forward the loan application and loan document package to the State's coordinator for this agreement . Each such loan, and any extension or renewal thereof, must be approved by the State prior to a loan commitment, extension or renewal being made by the contractor to the borrower. 19. Repayment a. Any loan repaid by or on behalf of a local borrower to the contrac- tor shall be repaid promptly by the contractor to the State. b. Any loan funds disbursed to contractor and not loaned to a local borrower within three months after disbursal to the contractor , shall be repaid to the State. c. When repayment of the full loan is made, the State agrees to recon- vey any security in any real property. d. The contractor agrees that neither failure to obtain any required permits, necessary subsidies, services, or financing, nor any other cause, releases the contractor from its obligations to the State to pursue all appropriate remedies, including foreclosure, in the event of default under the note or loan agreement by the local bor- rower. In the event of foreclosure, repayment to the State shall (7) be limited to proceeds available from the sale of the property benefiting from funds from the Fund after repayment of superior encumbrances . e. The loan agreement between contractor and the local borrower shall contain terms of reoayment which comply with the law and reaula- t ions governing this program and shall be oreoared by or approved by the State in form and substance. 20. Default a. In the event the contractor, for any reason, is unable to proceed with the rehabilitation activities approved by the State, the State may declare this agreement to have been breached and shall be released from any further performance hereunder . b. In the event of any default or breach of the agreement by the contractor, the State may declare any disbursements to contractor from the State to be immediately due and payable. In said event, the contractor agrees voluntarily to convey to the State all rights, title, and interest in any property securing the note and further agrees to convey all rights, title, and interest in all reports, tests, surveys, drawings, plans, maps, and other documents which are the product of funds disbursed under this agreement , which voluntary conveyance does not necessarily constitute full satisfaction of the obligation of the contractor to the State. c . Notwithstanding paragraph 19 d . , if the State must undertake the foreclosure of security or other reasonable collection activities , contractor shall be liable for any such costs not reimbursed by the security. d. In the event there is a default in repayment by a local borrower or a violation by the local borrower of the loan aareement between a local borrrower and contractor, contractor shall act promptly to ensure repayment or compliance with the loan agreement between the local borrower and the contractor. Any costs thus incurred by con- tractor shall not affect contractor 's duty of repayment to the State of any disbursements made herein, subject to proceeds obtained from the borrower or the security. 21. Reporting a. Every three (3) months from the effective date of this agreement until such time as all funds have been loaned to borrowers pursuant to their agreement , or more often if reasonably required by the State, contractor agrees to submit to the State a narrative and financial report that details the progress made on lending, rehabilitation , and occupancy activities to date; the amount of loan funds the contractor is likely to request during the next three (3) months; the amount of repayment the contractor is likely to make during the next three (3) months ; any problems the (8) Contra Costa County contractor is experiencing in program activities ; any technical assistance the contractor needs to accelerate or improve the program; and any other program information that may be required by the State. The State shall provide the contractor with the format for the reports . b. At least once each year, in a form and at a time provided for by the State, the contractor shall provide such information requested by the State with respect to summarizing all rehabilitation activi- ties so as to assure compliance with this agreement . This report shall comprise the fourth quarterly report referred to under subparagraph a. c. At a time specified by the State, the contractor agrees to submit a statistical report to the State which details the number of units assisted with the loan, the estimated rehabilitation costs, the units costs, and other relevant information requested by the State. d. Contractor aqrees to grant the State permission and to obtain borrower and occupant permission in each instance to enter and inspect properties subject to this agreement and to inspect all records of the contractor relating to compliance with this agreement. e. Contractor shall retain originals of all records related to use of funds from the Fund. Copies only shall be forwarded to the State when required or requested. 22. Special Clearance a. To the extent necessary, the contractor shall satisfy the State that all of the requirements of the California Environmental Quality Act have been fulfilled and that appropriate permits from the California Coastal Commission have been obtained when required on local rehabilitation activities . b. The contractor agrees that satisfaction of the requirements of this paragraph shall be preconditions for any disbursal of funds here- under. 23. Technical Assistance In the event the contractor experiences difficulty in progressing with the rehabilitation activities approved by the State, the contractor agrees to notify the State promptly of the difficulty and to accept whatever technical assistance the State may, at its option , be able to provide. 24. Fair Employment Practices The contractor agrees to comply with all the conditions required by the California Fair Employment Practices Addendum, Standard Form 3, which is identified as Attachment C, attached hereto, and made a part hereof. (9) 25. State Coordinator The State coordinator for this agreement is Ken Williams, Deferred- Payment Loan Program Manager. 26. Special Conditions a. In addition to the general provisions of this agreement, the special conditions set out in Item V of Attachment B must be satisfied before the State will advance any funds hereunder . b . Satisfaction of the aforesaid special conditions must be in a manner specified by or acceptable to the State. RS#7/1 (10) Ca IiFornia oeportmmn1. of Ilot simt iuid Cnrmun i I.y Dave I olnm n I. Deferred Payment RehabiIitati_on Pro in - APPLICl1fIOW _ DHCD/IIPRP-Application No. 80-HRL-11 Date Received: �— DHCD Use Only G 1 . GENERAL Official Name of Local Entity: Contra Costa County Address: P.O. Box 951, Martinez, CA 94553 Street City County State ZIP Contact Person: James Kennedy ` Phone: 415 372-2035 2. LOAN REQUEST Total State Deferred Loan Funds Requested: $_1509000 Estimated Amount of Other Funds Available for use with State .Deferred Funds: $ 1,000,000 Source of Other Funds: ,__CDBG, 312, FmHA 502 & 504, Private Financial Funds 3. ELIGIBILITY CATEGORY (Select Only One) This proposal is submitted under the following eligibility category: X (a) Local public entity with CHFA Concentrated Rehabilitation Area(s) . (b) Local public entity with a Marks/Foran residential rehabilitation financing program. (c) Code enforcement agency as covered in 50663(d) Health and Safety Code. _(d) Local public entity conducting a housing rehabilitation program in a rural CHFA Mortgage Assistance Area. X (e) Local public entity conductinq a housing rehabilitation or code enforcement program in an area in which federal funds are used or will be used in con- .junctinn with this program. _(f) Nonprofit Corporation conducting a housing rehabilitation program in a rural CHFA Mortgage Assistance Area. (g) Nonprofit Corporation conducting a housing rehabilitation or code enforcement program in an area in which federal funds are used or will be used in con- junction with this program. 4. CERTIFICATION AND EXECUTION I hereby certify that the statements, facts , and information contained in this applica- tion and the documents and attachments submitted herewith are true and correct to the best of my knowledge and belief. JUN 17 1980 By (Authorized Signature) DATE .�elz ��� Nl TURE Chairman, Board of Supervisors. TITLE California Department of Housing and Community Development Deferred Payment Rehabilitation Pro g ram APPLICATION DHCD/DPRP-Application No. Date Received: G//,Xn _/0.00 a .+�• T�--TTDHCD Use Only 6, f 1 . GENERAL Official Name of Local Entity: City of Antioch Address: P. 0. Box 130 Antioch Contra Costa CA 94509 _ Street City County State ZIP Contact Person: Douglas R. Ward Phone: 415 ) 757-3333 'Ext. 24 2. LOAN REQUEST Total State Deferred Loan Funds Requested: 50,000 Estimated Amount of Other Funds Available for use with State Deferred Funds: $ 900,000 Source of Other Funds: HCDBG 3. ELIGIBILITY CATEGORY (Select Only One) This proposal is submitted under the following eligibility category: (a) Local public entity with CHFA Concentrated Rehabilitation Area(s) . (b) Local public entity with a Marks/Foran residential rehabilitation financing program. (c) Code enforcement agency as covered in 50663(d) Health and Safety Code. (d) Local public entity conducting a housing rehabilitation program in a rural CHFA Mortgage Assistance Area. X (e) Local public entity conducting a housing rehabilitation or code enforcement program in an area in which federal funds are used or will be used in con- junction with this program. V(f) Nonprofit Corporation conducting a housing rehabilitation program in a rural CHFA Mortgage Assistance Area. (g) Nonprofit Corporation conducting a housing rehabilitation or code enforcement program in an area in which. federal funds are used or will be used in con- junction with this program. 4. CERTIFICATION AND EXECUTION I hereby certify that the statements, facts, and information contained in this applica- tion and the documents and attachments submitted herewith are true and correct to the best•of my knowledge and belief. 8 /9rl DE �J By (Authorized Signature SIGNATURE MAYOR TITLE City of Antioch • California Department: of Housing and Community Development Deferred Payment Rehabilitation Pro2am APPLICATION DHCD/DPRP-Application No. Date Received: -� DHCD Use Only Q-K 1 . GENERAL Official Name of Local Entity: City of Brentwood Address: 708 Third Street Brentwood Contra Costa CA 94513 Street City County State `LIP Contact Person: Robert Selders Phone: (415 ) 634-3505 2. LOAN REQUEST Total State Deferred Loan Funds Requested: $ 25,000.00 Estimated Amount of Other Funds Available for use with State Deferred Funds: $ 900,000.00 Source of Other Funds: Community Development Block Grant Funds 3. ELIGIBILITY CATEGORY (Select Only One) This proposal is submitted under the following eligibility category: (a) Local public entity with CHFA Concentrated Rehabilitation Area(s) . (b) Local public entity with a Marks/Foran residential rehabilitation financing program. !(c) Code enforcement agency as covered in 50663(d) Health and Safety Code. (d) Local public entity conducting a housing rehabilitation program in a rural CHFA Mortgage Assistance Area. X (e) Local public entity conducting a housing rehabilitation or code enforcement program in an area in which federal funds are used or will be used in con- junction with this program. (f) Nonprofit Corporation conducting a housing rehabilitation program in a rural CHFA Mortgage Assistance Area. (g) Nonprofit Corporation conducting a housing rehabilitation or code enforcement program in an area in which, federal funds are used or will be used in con- junction with this program. 4. CERTIFICATION AND EXECUTION I hereby certify that the statements, facts, and information contained in this applica- tion and the documents and attachments submitted herewith are true and correct to the best of my knowledge and belief. June 20, 1980 BY (Authorized Si nature) DATE � SIGNATURE Planning Director TITLE ' f . .. '♦ • • W California Department of Housinq and Cnninuini Ly D(!Vo_IopoienL Deferred Payment Rehabilitation Program - — AFPLICAf10 UKO/UPRP-Application No. Date Received: —$Q -0oM'W' Df!CD Use Only 1 . GENERAL Official Name of Local Entity: City of Martinez Address: 525 Henrietta Stree Martinez Contra Costa _CA 94553 Street City County State ZIP Contact Person: Ed Tomasello Phone: ( 415 ) 372-4940 2. LOAN REQUEST Total State Deferred Loan Funds Requested: $ 50,000.00 Estimated Amount of Other Funds Available for use with State Deferred Funds: $ 900,000.00 * No one Community in County Source of Other Funds: sponsored programs has a designated amount for re- habilitation loans. The program is demand responsive. Amount Development Block Grant and Private Financial Institution funds. 3. ELIGIBILITY CATEGORY (Select Only One) This proposal is submitted under the following eligibility category: __ _(a) Local public entity with CHFA Concentrated Rehabilitation Area(s) . (b) Local public entity with a Marks/Foran residential rehabilitation fin,ncing program. (c) Code enforcement agency as covered in 50663(d) Health and Safety Code. (d) Local public entity conducting a housing rehabilitation program in a rural CHFA Mortgage Assistance Area. X (e) Local public entity conducting a housing rehabilitation or code enforcement program in an area in which federal funds are used or will be used in -on- junction with this program. `(f) Nonprofit Corporation conducting a housing rehabilitation program in a rural CHFA Mortgage Assistance Area. (g) Nonprofit Corporation conducting a housing rehabilitation or code enfo:•cement program in an area in which. federal funds are used or will be used in con- junction with this program. 4. CERTIFICATION AND EXECUTION - I hereby certify that the statements, facts, and information contained in this applica- tion and the documents and attachments submitted here are true and correct to the best of my knowledge and belief. V B ;(A )t zed i re) ATE GNATURE 0 TIT Contra Costa County • ATTACHMENT B • ITEM I Loan Amount (Paragraph 9a) Contra Costa County $50,000 City of Antioch 25,000 City of Brentwood 25,000 City of Martinez 25,000 ITEM II Authorized Purposes (Paragraph 9b) Purpose Contractor to make Deferred-Payment Rehabilitation Loans in accordance with the program regulations 25 Admin. C. Section 7400-7436, as may be amended from time-to-time and Contractor's Loan Application No. 80-HRL-11. ITEM III Completion Date (Paragraph Ila) This Agreement shall terminate when all loans to Borrowers have been repaid and all funds collected from Borrowers by Contractor have been returned to the State pursuant to the terms of this Agreement. ITEM IV Security (Paragraph 12a) Contractor agrees to execute the "Agreement to Assign Deeds of Trust, Promissory Note and Loan Agreement" between the Contractor and the State. ITEM V Special Conditions (Paragraph 26a) a. Contractor shall submit an executed copy of a Resolution of the Contractor' s governing body, authorizing the execution of a Standard Agreement, an Agreement to Assign Deeds of Trust, Promissory Note and Loan Agreement, and other documents to secure a Deferred Payment Loan from the State of California and appointing an individual authorized to execute all documents on the Contractor' s behalf. b. For Contra Costa County,,Antioch, Brentwood and Martinez. Contra. Costa County will enter into one Standard Agreement to administer the awards for all of the jursidictions. The three cities would be required to submit resolutions from their governing bodies transferring all responsibilities of the State Deferred Loan Program to Contra Costa County. c. Loan amounts to the County and Cities shall not exceed those listed in Item I . ITEM VI Non-profits and Grantees of Administrative Funds ATTACHMENT C FAIR EMPLOYMENT PRACTICES ADDENDUM 1. In the performance of this contract, the Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, sex*, age*, national origin, or physical handicap*. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, ancestry, sex*, age*, national origin, or physical handicap*. Such action shall include, but not be limited to, the following: employment,upgrading, demotion or transfer; recruitment or recruitment advertising;layoff or termination;rates of pay or other forms of compen- sation; and selection for training,including apprenticeship. The Contractor shall post in conspicuous places,avail- able to employees and applicants for employment, notices to be provided by the State setting forth the provisions of this Fair Employment Practices section. 2. The Contractor will permit access to his/her records of employment, employment advertisements, applica- tion forms, and other pertinent data and records by the State Fair Employment Practices Commission, or any other agency of the State of California designated by the awarding authority, for the purpose of investigation to ascertain compliance with the Fair Employment Practices section of this contract. 3. Remedies for Willful Violation: (a) The State may determine a willful violation of the Fair Employment Practices provision to have occurred upon receipt of a final judgement having that effect from a court in an action to which Contractor was a party, or upon receipt of a written notice from the Fair Employment Practices Commission that it has investigated and determined that the Contractor has violated the Fair Employ- ment Practices Act and has issued an order, under Labor Code Section 1426, which has become final, or obtained an injunction under Labor Code Section 1429. (b) For willful violation of this Fair Employment Practices provision, the State shall have the right to terminate this contract either in whole or in part, and any loss or damage sustained by the State in securing the goods or services hereunder shall be borne and paid for by the Contractor and by his/her surety under the performance bond, if any, and the State may deduct from any moneys due or that thereafter may become due to the Contractor, the difference between the price named in the contract and the actual cost thereof to the State. *See Labor Code Sections 1411 - 1432.5 for further details. STD. o (e/n) 51WY.-150 n M wF 1..1 r • �D i CEIVED CONTRA COSTA COUNTY PLANNING DEPARTMENT J. R. OLSSON CLERK BOARD OF SUPERVISORS fn0 TR COS13 T CO. TO: M. G. WINGETT DATE: January 6, 81 County Administrator Continuation of Deferred FROM: ANTHONY A. DEHA US SUBJECT: Payment Rehabilitation Loan Director of Planning Program On June 17, 1980, theoard authorized the submittal of a proposal to the State Department of Housing nd Community Development (HCD) for the use of Deferred Payment Rehabilitation Loan funds in order to provide supplementary housing rehabilita- tion loans in designated areas of the County. In November, HCD awarded the County $50,000 under the program. Concurrent with the County applying the cities of Antioch, Brentwood, and Martinez also applied to HCD for program funds. Each of the cities received $25,000 in program funds. Created by SB 966, the program provides deferred payment loan funds to assist low and moderate income households in the rehabilitation of their homes. The State, through HCD, lends funds to the County who, in turn, lend to eligible property owners. The loans are in the form of deferred loans with 3% interest on the original principal. All loan funds are secured by a deed of trust on the property. The 'Deferred Payment Rehabilitation Loan Fund is considered to be a supplementary source of rehabilitation financial . assistance, i.e., it will not be utilized to replace local housing rehabilitation funds. Loans made available from the Deferred Payment Loan fund are to be utilized to cover the costs of rehabilitation which are in excess of what the County can currently provide. The two funding sources acting in tandem will result in the County having the capabilities to assist more families in need of rehabilitation assistance. In 1980 eight families in the County received supplementary deferred payment loans through this"program. Administrative costs for the program cannot be paid out of the Deferred Payment Loan Fund. The federal Community Development Block Grant funds allocated to the County Building Inspection Department be utilized to cover administrative costs. In order to begin utilizing the Deferred Payment Rehabilitation Loan Funds, the County must execute and transmit- to- the State the attached Standard Agreement (4 copies),- - Agreement to Assign Deeds of_-Trust Promissory Note and Loan-Agreement (4 copies). - - — -- The Standard Agreement covers the administration of the County allocation of $50;000; as =_ well as $25,000 for each of the Cities of Antioch, Brentwood, and Martinez (City total of $75,000; Agreement total.$125,000). County Counsel has reviewed these documents. I recommend that you place this.matter — before the Board of Supervisors for their consideration and approval. In so doing, additional rehabilitation funds would be available to improve the quality of housing for low and moderate income residents of the County. A draft Board Order is attached. AAD:js:la Attachment In the Board of Supervisors of Contra Costa County, State of California June 17 , 19 as In the Matter of Authorizing the Submittal of a Proposal to the State of California Department of Housing & Com- munity Development for Deferred Payment Rehabilitation Loan Funds (SB966/AB333/SB229) IT IS BY THE BOARD ORDERED that the Planning Department is authorized to submit to the State of California Department of Housing and Community Development a proposal for the use of additional Deferred Payment Rehabilitation Loan Funds to undertake housing rehabilitation in Fiscal Year 1980-81, and that the Chairwoman is authorized to sign said proposal. PASSED BY THE BOARD on June 17, 1980. I hereby certify that the foregoing is a true and correct copy of an order entered on the minutes of said Board of Supervisors on the date aforesaid. Orig: Planning Witness my hand and the Seal of the Board of cc: Planning Supervisors State HCD affixed this 17th day of June 19 80 Administrator Auditor J. R. OLSSON, Clerk By Deputy Clerk R. Fluhrer H-24 3/79 15M • California Department, of Housing and Cninmmnit:y Development Deferred Payment Rehabilitation Program APPLICATION DHCD/DPRP-Application No. _ Date Received: _ DHCD Use Only 1 . GENERAL Official Name of Local Entity: Contra Costa County Address: P.O. Box 951, Martinez, CA 94553 Street City County State L IP Contact Person: James Kennedy , Phone: � 415 372-2035 2. LOAN REQUEST Total State Deferred Loan Funds Requested: $ 150,000 Estimated Amount of Other Funds Available for use with State .Deferred Funds: $ 1,000,000 Source of Other Funds: CDBG, 312, FmHA 502 & 504. Private Financial Funds 3. ELIGIBILITY CATEGORY (Select Only One) This proposal is submitted under the following eligibility category: X (a). Local public entity with CHFA Concentrated Rehabilitation Area(s) . (b) Local public entity with a Marks/Foran residential rehabilitation financing program. (c) Code enforcement agency as covered in 50663(d) Health and Safety Code. (d) Local public entity conducting a housing rehabilitation program in arural CHFA Mortgage Assistance Area. X (e) Local public entity conducting a housing rehabilitation or code enforcement program in an area in whicW federal funds are used or will be used in con- junction with this program. (f) Nonprofit Corporation conducting a housing rehabilitation program in a rural CHFA Mortgage Assistance Area. (g) Nonprofit Corporation conducting a housing rehabilitation or code enforcement program in an area in which federal funds are used or will be used in con- junction with this program. 4. CERTIFICATION AND EXECUTION 1 hereby certify that the statements, facts, and information contained in this applica- tion and the documents and attachments submitted herewith are true and correct to the best of my knowledge and belief. JUNBy (Authorized Signature) DATE�� -� � — Gf l 11R-------------------- BOARD .----•------ ---- BOARD OF sIIPF.RLV-IsCRS TITLE ;, 4y 4y Q Zoa____________________._____.___.___.__,________. JY A Jf (� • � tO h Jj iy a• a 4q f+ k� Jry tAk i^r n� a r r' a a rr p a • Or r Q �It �r CROCKETT HOUSING REHABILITATION TARGET' AREA i • f `n/ P`QOP r- B q 4 :i y < . . + .\•r •.' a�tr.ti. oo,r,., fir:: l so OL `n k � p it 0 -y pO � Ppt�PO } L JC lq SOUTHERN PAjkVL ' a• p' i. f S � i OP 4 t h, �� b ♦ i .a. yq,z �/ o.' Q {r. ems. `it ': ••r. • ', .. "° eONMIE y i'10 J`.� x `•y`/�3e3`.c� r r I�•',�, ' ` y� s'•k 'yfb';\�g>w � ^ y n' a,M >`t)' l t r�'coq c1, �%1,r.f,i,y .y[ d\\� +� cy s.+r'� n � q /.� �. h, ,•ask n/ •t�_;td'Ff L .1.�(" �.r�n • Oy `,, � pN`p ' Y,� i. .,`4 3\� .yo ,n ,r. .,7E r r_'o• ¢ ry t y, ".w '° �,. yOL"� 'f �.jI : �. sjc' �.rJ }A..'t S'�•z j sz .,, Lry xs nt'• yf Y,: }'°`��t,.f °,q ?. 'LY h f �zi.f/'.0 t'\ -Irk._,... Lyr m., c � s r .x• , n �Y' t'y�a'\\� r�.,`t' -•., pxO..4c r rH .N yr• '� < } »///'`"y'�`,~i+ • T`�.�H Mt t t yJ+ r t��//l ,�,ot„ ��•+. ',r.. •/q. ,rs ¢ ,� r. �/i h4 o Wr's .t °ot . s f; ^?,n'�( '4.�z9 Rvkl t c.°. � / f' Y� � i �E.t • �t3t.t ��'•�.,y�'rv�+. b,.�r K�. t+ °4.r / r r 3'4'x` 4 •,� r .� i :ij".,. o � ,'`�' S .. t v r 4' 4 t`•L r 4 y\N NONTp\ y r `� K��. +I r-.• .�:( a¢ .S .r � -ti= t t j » 4 s t•' �. " p,NOR • 0 yS . �¢�%+".--._.� �. nw,• i ,y. * ,f ( em' .rr M' `� t{•J �.Y-ZJ �' '..N e .s .x� { � c sx t t .. q xnp Cr� ,ty,`. `s,., ��✓ ¢ P G Ott Nl zr'( glLRM }00 + O ` �i�r/`it J y-�/�� ¢� � .i�L�f �1 �.,el..e .✓Ny r_ r TIt J Jr)ff�. 1 r, Ik !� t� t '�.... - �•r t,l ru.l. ��4,�9L..._j MpFtLNER ��o rcco r +/ J t�, 11 1 rr o f Jr y i n5. Nl s Pio' nO pirON` `,z t 1 =qt 44j- � `T� / ry. �,�1's�'L-��--� '� C: ('--:, � ` ilk., { I • L:' -- ���'yy�yyY. / l-- ..0 NM1. fX �' .� 1 ��. � -', ^✓ "lya, F TT.ol/ � i � C7UR � _- e ,: �- >- 41 E '' /-`a�:'K%tit�/;1 �'v�.�'l'/�'•�r � ss y/,/ , 7 (%���^Tj-'�"'�-ll"'�� 44z� .`.`l•" + r .. wr cf � �',4-'`.� •-••�,�' ,�-..' SCR � 'i {�.� � "__----;t y:: 1 ` I / e ,d- o „ CpN\PA COSTP COUNTY FY',OUsING y/ .r . $ 1•y I 2u1 i i \\ 5PN E I A �1 PARR RICH B CDT 204 rrr IND CORP SAM TAMS R1 CHI ° F E + H D LOT 2014L LOT 199 D H SUTTON N O P 0 R S NC T U x LOOMIS ra 15 VERDE SCHOOL 14 LOT 9B SUB LOT 1 IB , �E��`v ... •r" •firE .-A.t .. DT11�8L: �� +" C. . ifs `:r� _•' 195 - r �- E 4'F 10 2 ui 19 is 17 24za ' nt' l'il1 Ff 1, v .5 RMEEM iL w cnovE y. 68 -4 j- _ -.i}'• MFG •. ... � cF� ''➢� �' .,t� I CO LOT 19] 9 I 30 31 32 :6: 'J � fff����"_-aa 61'1 T. IIt-�-(y] L�pp)�.. f.ii L'—: 21`0 t4'At'L 52 I SECS vC F4,9,9 z2 zl C` 1 i 6 CERTAIN- �L 7 X21= ..u� (?.,6 y� TEED J.cJ '�. e1�lri��:;�„ PRooucr 2 s • A �` 1 V�If- • SL V.IDFO ' JI sanr^Ao m[ Ell 277 L_W111iL1.J .2 , / �i 89 LLFx AVE 5� B 5T t 3 ie.o• wE ,A,�D�p 6 PP ryry E 89 - 1� { tm!ZiF;�Ci�NL^:lrfl4t�ft��e;r�a;�lerrr.,, .yr lx, Cbrr1^m1G . ar,T '� , I., ,�lu3ifn� r �7�*irr�l �r1LbT�C1tr�i�i �.11. -•-..- .. ... .•. _ . — )ULLY. .. .. .. ... IIU __.. ....._ ....... ly i �A Puny • n I' ,tr _� ' J"�_� i (( ,, Ci J,1 J .IFsi aoti'ti _ f OAKLE ` E, -PT V • J I rr T • / l , -1 Fri CHOot I ,IS �- in -.� ,; ;•:m: .. i-- - ��I' _Jam. - � A 1 --i—i-1— —1-- ------- — — -- —...: --_- pf 77 ��Z rem I �P i Icy +... � W i.. Iw.u+1' l,�.iLrv' �. ' Y OAKLEY lAOU51W& RENASILITATION TARGET AIM A I - - , - -F, 71 -T]� I 1 _ L - T --� --- --�� ��- Av•..01� _31»S I IL- 1 O i V r - ,,, I -= x s •F I H D ' / 6N \\!� N Llfiw �t •IS ��.. Mr. V 4UMGnttj 0 SCG 14' _ �� j� fNtRN i C e A„a - 1 r Ott i �1t � y��� .� � t@, �✓ N�Y 1�- �� ,-+, � ,' r J�pD f,� 0, .� fir�!,n, ,g3� ` .� , 12P,N l, � r �-;,� •^y R�RrS` `C a zt000,k to ����• � �.�''��; � �, � qtr � x.���� �t RL41M\NG CO . ER "MigGER ' CO �\ P bn yN�i}, Zit• 0 9 • •\1 \ rdW • •\ C h i S ♦ °oi� `� /I ° O e i•pO rr 9� YO Y �1 Z"• t VIA • Y 11t V_LL1�14 L°PYpYNi Ci. A 1 Y� PINE Hill Y y sat `{ SCHOOL _L S m , \ VIDE JILLEHABILITATION TARGET AREA C� r � r , x r 1 i��jl WBS I' R'�� 3) Program Summary Statement In order to further assist families of eight unincorporated target communities in rehabilitating their homes, Contra Costa County is requesting $150,000 in State Deferred Payment Rehabilitation Loan funds. The funds would be utilized to supplement approximately $1,000,000 in CDBG and other funds which would be available for rehabilitation in fiscal year 1980-81. The funds would be utilized to assist families in the six communities designated by CHFA as Concentrated Rehabilitation Areas (CRA), as well as two CDBG Target Areas which are not CRA's. A description of each of the communities is presented below: A) Crockett (Census Tract 3570) - A community of 3,024 persons, Crockett has a median income of $7,897. Approximately 69.1% of the households are of low-moderate income. Crockett has one of the highest percentages of senior citizens in the County. 4 of the 11 qualified applicants to date are elderly. Crockett is one of the oldest communities in the County. Nearly 70% of the units were constructed prior to 1940. The Housing Rehabilitation Program and the Home Maintenance Training and Coun- seling program have been available to Crockett residents for about one year. In addition, approximately $350,000 in Community Development funds have been provided to renovate a California Historic Building and to rehabilitate a building to be used as a neighborhood facility. B) Montalvin Manor (Census Tract 3640) - A post-war subdivision of 2,001 persons, Montalvin Manor has a median income of $10,758. About 61% of the families are of low and moderate income. .Response to the rehabili- tation program in Montalvin has been good - 32 qualified applicants to date. The. NPA has a very high number of school age children - almost 50% of the population is under 19 years of age. The Montalvin Manor subdivision, built in the early 1950's still provides afforable entry level housing for young moderate income families. The CHFA HOHI Program was extensively used to purchase and rehabilitation homes in the com- munity. The County Housing Rehabilitation Program and the Home Maintenance Training and Counseling Program have been available to Montalvin Manor residents for about four years. In addition $615,000 in Community Development funds have been utilized to develop a neighborhood park to construct a neighborhood center/recreation building, construct a storm drain, and construct a footbridge over railroad tracks separating the community from the neighborhood center. C) Mountain View (Census Tract 3190) - About 60% of the families in this community of 3,057 persons are of low and moderate income. The median income is $9,622. The Mountain View NPA is a relatively old community. Nearly 30% of the homes were built prior to 1940, and nearly 60% were built prior to 1950. Many of the homes lack adequate foundations, electrical and plumbing systems, and need structural work. A windshield survey of the Community in 1976 indicated that over 30% of the homes were in need of substantial repair while another 40% required minor repair. The elderly population is proportionately higher in the NPA than in the County - 8.7% vs. 7.8%. Further, 10 of the 22 qualified applicants to date have been elderly. The Housing Rehabilitation Program and the Home Maintenance Training and Counseling Program have been available to area residents for four years. In addition, approximately $435,000 in Community Development funds have been allocated for park site improvements, to acquire a building to house a drug counseling center, to conduct a feasibility study of a possible neighborhood center, and to undertake storm drainage improvements. D) North Richmond (Census Tract 3650) - A community of 2,188 persons, North Richmond has the highest concentration of minorities in the county. With a median income of $3,667, North Richmond is also the poorest community in •the county. Over 97% of the residents fall within the low and moderate income range. The NPA has a higher percentage of Senior households (12%) than the County as a whole (7.7%). Eleven of the twenty-one qualified applicants from North Richmond are elderly. Fur- ther, almost 50% of the households are single-headed households. A windshield survey by County Building Inspection staff in 1976 indicated that 75% of the homes were in need of repair - 45% of them with substantial defects requiring major repair. The County Housing Rehabilitation Program and the Home Maintenance Training and Counseling Program have been available to North Richmond residents since their inception five years ago. In addition, the county has allocated over $700,000 in Community Development funds which have completed a series of projects to complete sidewalk, curb and gutter improvements in the area, construct a child care center, improve a local ballfield and to construct a senior center. E) Oakley/Sandhill (Census Tract 3020) - Oakley, a rural community of 2,978 persons, has been a target area for two years. The median income of Oakley families is $8,054. Over 70% of the households are of low and moderate icnome. The Oakley/Sandhill area has a relatively high elderly population - 9.8% vs. the County average of 7.9%. The area also have a number of large families. A significantly greater portion of the house- holds live in overcrowded conditions in this area - 7.4% vs. 2.7% in the County. The condition of the housing stock is also relatively poor - a 1976 windshield survey of a portion of the NPA indicated that over 40% of the homes were in need of substantial repair, and another 30% needing minor repairs. To support the housing rehabilitation activities the county has allocated $445,000 to develop a neighborhood park, undertake street and frontage improvements and to implace sewer laterals. Further, two activities which serve the entire rural east county area have been funded. About $85,000 has been allocated to fund a program which packages loans for families seeking assistance from farmers I Ionic Administration and over $1,200,000 has been allocated to acquire land and construct a service and recreation center in nearby Brentwood. Additional CDBG funds (about $430,000) have been expended or are programmed for expenditure to improve streets in both Oakley and Sandhill, and to provide sewer laterals in the Sandhill area. F) Rodeo (Census Tract 3580) - A community of 5,333 persons, Rodeo has a median income of $10,875. Approximately 58% of the residents are of low and moderate income. Rodeo is one of the older communities in the County. Forty percent of the homes were built prior to 1940, while 60% were built prior to 1950. A windshield survey of Building Inspectors in 1976 indicated that 60% of the homes were in need of repair. Based on program experience foundations, plumbing, and electrical work tend to be most prominent. The population of Rodeo is also relatively old - over 13% are elderly (twice the County average). Five of the 15 qualified applicants have been elderly. The population has also been relatively stable - the median years lived in a unit in Rodeo (six years) is substantially higher than the County (4 years). The County Housing Rehabilitation Program and the Home Maintenance Training and Counseling Program have been available to Rodeo residents for about four years. In addition, over $665,000 in Community Develop- ment funds have been provided to acquire and renovate a building for use as a neighborhood center, purchase and renovate a buildings for use as a day care center, complete needed frontage improvements, and to con- struct a small recreation building adjacent to the community ballfield. G) Vine Hill (Census Tract 3200) - The Vine Hill community consists of 2,997 persons and has a median income of $11,281. Approximately 54.5% of the households are of low-moderate income. Vine Hill has one of the highest percentages of youths in the County. Over 4% of the homes are overcrowded, which is substantially above the County average. A 1980 windshield survey by County Building Inspectors indicated that over 60% of the homes are in need of repair, with over 10% in need of substantial repair. The Housing Rehabilitation Program and the Home Maintenance Training and Counseling program have been available to area residents for one year. In addition, approximately $310,000 has been allocated to conduct a feasibility study of a possible neighborhood center to construct an alternate access to an adjacent sanitary landfill to divert traffic away from the community and to construct safety paths to provide safe pedestrian access to an elementary school. H) West Pittsburg (Census Tract 3141, 3142) - A relatively lare community of 8,999 persons, West Pittsburg has a median income of 97,918. Over 72% of the families are of low and moderate income. The population is slightly older than the County as a whole - 8.3% elderly as opposed to 7.9% in the County. Eleven of the 45 qualified applicants to date have been elderly. A 1976 windshield survey by Building Inspectors indicated that over 60% of the homes were in need of repair, with nearly 20% in r • • need of substantial repair. The commui ity also exhibits a higher degree of overcrowding - 5.8`X> vs. the County's 2.7%. The County Housing Rehabilitation Program and the Home Maintenance Training and Counseling Program have been available to West Pittsburg residents since their inception over five years ago. In addition, approxi- mately $1,300,000 in Community Development funds has been allocated for park improvements, the acquisition and renovation of a surplus school for use as a neighborhood center, and park-day care improvements. NEIGH13ORIIOOD/REHABILITAT ION AREA DATA I ORM (Complete One Form For Each Neighborhood/Rehab Area . Where State Deferred Funds Would Be Used) Population Applicant Contra Costa County (city or county) 580,451 (1975) Name or Number of Neighborhood/Rehabilitation Area Crockett CHFA Concentrated Rehabilitation Area Marks/Foran Area Other Areas CD BG Target Area (indicate type using eligibility category from application form) Neighborhood Population 3024 (197 5) Total Dwelling Units (D.U. ) in Neighborhood/Rehabilitation Area - From Housing Assistance Plan (HAP) 1249 Number of D.U. 's in Deteriorated Structures e 142 Percent of D.U. ' s in Deteriorated Structures 11.4 Estimated Average Rehab Cost Per Deteriorated Unit 10,000 Owner Occupancy (number and -percent of total ) 792 ( 63 )% Renter Occupancy (number and percent of total ) 457 ( 35 )% Family Median Income for County (1970, or later if available) $ 15,026 (1975) Family Median Income for this Neighborhood/Rehabilitation Area (1970, or later if available) $_ 7,897 (1975)_ Neighborhood/Rehabilitation Area Population Breakdown by Income.: Very Low (under 50% of median) _ 597 �( 48 )% Low (51%-801/ of median) 265 ( 21 )'% Moderate (81"-120% of median) 87 ( 7 )" Ethnic Mix: White 86.1% Spanish Surname 4.3 % Black 0.4 % Asian 0.4% Other 8.8 % NEIGIiD''UItIlO01fREIVU;IL.ITATfON AREA DAl A I ORM (Complete One Form For Each Neighborhood/Rehab Area Where State Deferred .Funds Woul.d Be Used) Population Applicant Contra Costa County _(city or county)_ 580,451 (1975)_ _ Name or Number of Neighborhood/Rehabilitation Area Montalvin Manor CHFA Concentrated Rehabilitation Area Yes Marks/Foran Area No Other. Areas CD BG Target Area (indicate type using eligibility category from application form) Neighborhood Population 2001 (1975) Total Dwelling Units (D.U. ). in Neighborhood/Rehabilitation Area From Housing Assistance Plan (HAP) 533 .Number of D.U. ' s in Deteriorated Structures 397 Percent of D.U. ' s in Deteriorated Structures 74.5 Estimated Average Rehab Cost, Per Deteriorated Unit 62000 Owner Occupancy (number and percent of total ) 373 ( 70 )� Renter Occupancy (number and percent of total ) 160 ( 30 )� Family Median .Income for County (1970, or later if available) $ 15,026 (1975 Family Median Income for this Neighborhood/Rehabilitation Area (1970, or later if available) 3 107758 (1975) Neighborhood/Rehabilitation Area Population Breakdown by Income: Very Low (under 50% of median) 37 ( 7 )7. Low (51%-80% of median) _� ;( 16 )� Moderate .(81 l20'Z of median) ___gip ( 47 )% Ethnic Mix: a White 85.9 % Spanish Surname 4.7 '/1 Black 4.3 % Asian 0.9 % Other 4.1 0 NEIGHBORII001)/REIIA1;1I. ITATION AREA UA1A IORM (Complete One Form For Each Neighborhood/Rehab Area Where State Deferred Funds Would Be Used), Population Applicant Contra Costa County (city or county) 5Rn1451 Name or Number of Neighborhood/Rehabilitation Area Mountain View CHFA Concentrated Rehabilitation Area Yes Marks/Foran Area No Other Areas. C DBG Target Area (indicate type using eligibility category from application form) Neighborhood Population 3,857 (1975) Total Dwelling Units .(D.U. ) in Neighborhood/Rehabilitation Area From Housing Assistance Plan (NAP) _ 1.182 Number of D.U. ' s in Deteriorated Structures 839 Percent of D.U. ' s in Deteriorated Structures 71.0 Estimated Average Rehab Cost Per Deteriorated Unit 69000 Owner Occupancy (number andpercent. of total ) 770 ( 681% Renter Occupancy (number and percent of total ) ---3-63--( 32 )% Family Median Income for County (1970,, or later if available) $15,026 (1975) Family Median Income for this Neighborhood/Rehabilitation Area (1970, or later. if available) S 9,622 (1975) Neighborhood/Rehabilitation Area Population Breakdown by Income: Very Low (under 50% of median) 261 ( 23 Low (510/10-800/ of median) 227 ( 20 )% Moderate (81i,-120% of median) 306 ( 27 )% Ethnic Mix: White 91.0 Spanish Surname 6.9 Black * 0.9 % Asian 0.4 % Other O_g NEI G110RIIOOD/REIIAIiILI-FA'FION AREA DATA I ORM (Complete One Form For Each Neighborhood/Rehab Area Where State Deferred Funds Would Be Used) Population Applicant Contra Costa County (city or county)_ 580,45E _ Name or Number of Neighborhood/Rehabilitation Area North Richmond CHFA Concentrated Rehabilitation Area Yes Marks/Foran Area No Other Areas CD BG Target Area __(indicate type using eligibility category from application form) Neighborhood Population 2,194 (1975) Total Dwelling Units (D.U. ) in Neighborhood/Rehabilitation Area From Housing Assistance Plan (HAP) . _ 919 Number of D.U. ' s in Deteriorated Structures 487 Percent of D.U. ' s in Deteriorated Structures 53.0 Estimated Average Rehab Cost Per Deteriorated Unit 69000 Owner Occupancy (number and percent of total ) 303 ( 33 )% Renter Occupancy (number and percent of total ) 616 ( 68 )% Family Median Income for County (1970, or later if available) 15,026 (1975)____ Family Median Income for this Neighborhood/Rehabilitation Area (1970, or later if available) $ 3,667 1975 Neighborhood/Rehabilitation Area Population Breakdown by Income: Very Low (under 50% of median) _ 319 ( 62 )V, Low (51%-807 of median) 149_-,� 17 )% Moderate (81',5-120'Y of median) _._.__..J08____-_( 13 .)'/ Ethnic Mix: White7.1 °6 Spanish Surname 1.9 Black * 88.5 % Asian 2.2 =/ Other 0.2 % • NEIG1160R11001)/REIT/11;11_[TA-I-ION ARTA UATA FURM (Complete One Form For Each Neighborhood/Rehab Area Where State Deferred Funds Would Be Used) Population Applicant Contra Costa County (city or county) 580,451 .Name or Number of Neighborhood/Rehabilitation Area Oakley-Sandhill CHFA Concentrated Rehabilitation Area Yes Marks/Foran Area No Other Areas CD BG Target Area (indicate type using eligibility category from application form) Neighborhood Population 31299 (1975) Total Dwelling Units (D.U. ). in Neighborhood/Rehabilitation Area -. From Housing Assistance Plan (HAP) 40 Number of D.U. ' s in Deteriorated Structures 775 Percent of D.U. ' s in Deteriorated Structures 68.0 Estimated Average Rehab Cost Per Deteriorated Unit 69000 Owner Occupancy (number and percent of total ) 768 ( 70 )°i Renter Occupancy (number and percent of total ) _ 324 �( 30 )% Family Median Income for County (1970, or later if available) $ 15,026 .(1975) Family Median Income for this Neighborhood/Rehabilitation Aria (1970, or later if available) S_8.054 (1975) Neighborhood/Rehabilitation Area Population Breakdown by Income: Very Low (under 50% of median) 328 . ( 30 )% Low (51%-80% of median) 273 ( 25 )% ..Moderate (81%-120'% of median) 317 ( 29 )„6 Ethnic Mix: White 77.4 % Spanish Surname 19.3 Black 0.5 % Asian 0.8 % Other 2,I NEIG1113ORIlOOD/REIVII;II..ITATION AREA DATA FORM (Complete One Form For Eich Neighborhood/Rehab Area Where State Deferred Funds Would Be Used) Population Applicant Contra Costa County (city or county) 580,451 Name or Number of Neighborhood/Rehabilitation Area Rodeo CHFA Concentrated Rehabilitation Area Yes Marks/Foran Area No Other Areas C n BC: Target Area (indicate type using eligibility category from application form) Neighborhood Population 51333 (1975) Total Dwelling Units (D.U. ) in Neighborhood/Rehabilitation Area - From Housing Assistance Plan (HAP) 1928 Number of D.U. ' s in Deteriorated Structures 1211 Percent of D.U. ' s in Deteriorated Structures 62.8 Estimated Average Rehab Cost Per Deteriorated Unit 6,000 Owner Occupancy (number and percent of total ) 1292 ( 70 )/ Renter Occupancy (number and percent of total ) 636 ( 30 )% Family Median Income for County (1970, or later if available) $ 159026 (1975) Family Median Income for this Neighborhood/Rehabilitation Aria (1970, or. later if available) $ 109875 (1975) Neighborhood/Rehabilitation Area Population Breakdown by Income: Very Low (under 50% of median) 443 ( 24 )/ Low (51%-80% of median) _ 517 _( 28 )% ..Moderate -(81%-120% of median) __498___( 27 )% Ethnic Mix: White 79.5 % Spanish Surname 6.0 Black 2.7 % Asian 1.2 G Other 9.7 NEIGfIBOR1100D/REIfI\I)'ILITATION AREA DATA I ORM (Complete One Form For Each Neighborhood/Rehab Area Where State Deferred Funds Would Be Used) Population Applicant Contra Costa County (city or county)_58o,45I (1975)_ _ Name or Number of Neighborhood/Rehabilitation Area Vine Hill CHFA Concentrated Rehabilitation Area Marks/Foran Area Other Areas C D BG Target Area (indicate type using eligibility category from application form) Neighborhood Population 3381 (1975) Total Dwelling Units (D.U. ) in Neighborhood/Rehabilitation Area From Housing Assistance Plan (HAP) 1024 Number of D.U: 's in Deteriorated Structures 56 Percent of D.U. ' s in Deteriorated Structures 5.5 . Estimated Average Rehab Cost Per Deteriorated Unit 109000 Owner Occupancy (number and percent of .total ) 719 ( 70 )� Renter Occupancy (number and percent of total ) _-305 30 )% . Family Median Income for County (1970, or, later if available) $ 159026 (1975) Family Median Income for this Neighborhood/Rehabilitation Area (1970, or later if available) $ 12,652 (1975) _ Neighborhood/Rehabilitation Area Population Breakdown by Income: Very Low (under 50% of median) 288 ( 28 )% Low (51%-800/ of median) 224 ( 22 )% Moderate ..(81%-120% of median) 289 ( 28 )% Ethnic Mix: . White 91.4 % Spanish Surname 4.58 " Black .5 % Asian 1.3. %• Other . 2,3 % • NEIGIIBORIIOOD/REIUU;(LITATION AREA DATA I-ORM (Complete One Form For Each Neighborhood/Rehab Area Where State Deferred Funds Would Be Used) Population Applicant Contra Costa�County _(city or county) 580,451 Name or Number .of Neighborhood/Rehabilitation Area West Pittsburg CHFA Concentrated Rehabilitation Area Yes Marks/Foran Area No Other AreasCD-BG Target Area (indicate type using eligibility category from application form) Neighborhood Population 8,999 (1975) Total Dwelling Units (D.U. ). in Neighborhood/Rehabilitation Area - From Housing Assistance Plan (NAP) 3563 Number of D.U. ' s in Deteriorated Structures 2066 Percent of D.U. ' s in Deteriorated Structures 58.0 Estimated Average Rehab Cost Per Deteriorated Unit .61000 Owner Occupancy (number and percent of total ) 2136 ( 67 )/ Renter Occupancy (number and percent of total ) 1052 ( 33 )% Family Median Income for County (1970, or later if available) b 159026 (1975) Family Median Income for this Neighborhood/Rehabilitation Area (1970, or later .if available) $_7,918 (1975) Neighborhood/Rehabilitation Area Population Breakdown by Income: Very Low (under 50% of median) 893 ( 28 )% Low (51'%-80% of median) 1020 ( 32 )% ,Moderate (8190-120% of median) 861 `( 27 )% Ethnic Mix: bIhite 79.1 % Spanish Surname 6.7 % Black 11.4 % Asian 1.0 % : Other 1.9 % k[|K\8Ii|T8| \VQ |l;K;R[`S [0|�M � . ^ � � A. loL0 | |`rVoa| l |) C [v /Y'3A �� _� � ������ Number HuNber � � � --_--_- � � l � Total OMIR Loans � � 58 Total Funds � 4601638 35 �280.00O . --_-___ � 2. Total Deferred Loans 90 Total Funds __610,261_ ____4J . $305J300 � -]. Total Grants A9 Total Funds 4, Other � Total Funds � � � � � TOTAL ALL LOANS/ TOTAL ALL GRANTS � _��7FUNDS � B. �OO \ � -�� � `- ~�—`--- �-�' � Propnsc6 l . No. Of Units Proposed for Rehabilitati0w FY 78_79 JO FY 79^8075 FY DO'D7 100 � 2: No. of Units Rehabbed (completed) : . FY 78~79 33 FY 79-8040FY 80-81__. _._ � ]. N0� 0f Units Rehabbed by Tenure: � � � O. NO. Of Owner-Occupied: FY 78-79 33 FY 7�-�O85 85---Proposed FY 80-8175 --___- --_-_- � ^ b� MO� of Rental Units: FY 78-79 FY 79-80 Proposed FY OO-83______ � � 4, Percent of- Rehabilitation Proposed to Rehabilitation Completed? � � *FY M-79 66 eX � 74-80 55 � � � C. Households Benefiting From Rehabilitation Programs Proposed FY 72-79 FY 79-00 FY 80-81 � � ] , No. of Very Low Inc /50% or less of Median) 2041 50 -----'---- --------- -------- � 2. No. 0f Low-Income (between 50Z � 80% of Median)� No. 0f *R0d9rate~lnCOme (between 80Z & 120% � Of Median) � `. Above 120% of Median . TOTAL HOUSEHOLDS ASSISTED � 33 85 100 � ^ � . -------- -------- '-------r D. Rehabilitation With Rent LimitaLinn � Prnpnsed _ ���- � �----------`--'-----`-- FY 78-79 FY 79-80 FY 00-81 1 . No.NO. Of Proper-ties Where Section 8 Used: ' No.. of Units: � ' 2` NV� 0f Properties Where RV||L Limitations � � 8greCmentS. Usod Without Section A: � No. Of Units.: � � COMMENTS THAT WILL HELP EXPLAIN ANY OF THE ABOVE: (Us8. s8p8ratr sheet Of paper, if necessary) � � � � � � � • SPECIFIC NON-OCCUPANT-OWNB 1'ROPERFIES (RENTALS) FORM If the local agency has plans to make loans on already identified rental properties of five (5) or more units, complete the following (attach additional sheets if more than one property): Name of property, if any: NONE Name of .Owner/Sponsor (indicate nonprofit, profit, cooperative etc. ) :. Name or Number of Neighborhood: CNFA Area Marks/Foran Area Other Area Number of Units: Occupied Vacant Number of Units Occupied by Very Low-Income (estimated) Low-Income Moderate Estimated Cost of Rehabilitation $ Estimated Amount of State Deferred Loan $ Estimated Amount of Total Loans on the Property $ SOURCES & AMOUNTS $ $ Section B Available? YES NO Proposed Rent Limitation Arrangement? YES NO Use of Section 8? YES NO ADDITIONAL COMMENTS: STATUh OF SB 06 LOAN PROCESSING No. .Of Potentially Qualified SB 966 Owners On Waiting List _ 4 No. Of Units Represented By SB 966 plaiting List 4 Est. Total Value Of Loans >hat• Might Be Made From List $30,000 SB 966 Loan Applications tieing Processed 3 Est. Total Value Of SB 966 Loan Applications Being Processed $25000 Total Value Of Approved SB 966 Loan Applications 8102000 No. of SB 9.66 Loans Approved 3 r • 5a) Use of State Deferred Funds with Other Funds In fiscal year 1980-81 the County will have available an estimated $900,000 in CDBG funds with which to provide rehabilitation financial assistance. Addi- tional funds are available through the Section 312 program the Farmers Home Administration 502 and 504 programs and, for the County BMIR component, private funds from a financial institution are leveraged. No one community has a direct allocation; the program is demand responsive. 5b) Continuance of Present Rehabilitation Financing The expected use of SB 966 funds is to supplement the currently available funds. The funds•would be primarily utilized to do rehabilitation work which cannot be done under current County policies because of limitations on maximum loan amounts. The County has found that in many of the target areas that because of the degree of deterioration, combined with inflation in the construction trades, there have been a number of applicants who could not be assisted, or could not have all desired repairs completed. The additional funds available through SB 966 funds could provide the incremental amounts neces- sary to assure that more households in need of rehabilitation can be assisted. 5c) Ability to lend funds Since the inception of the program 160 clients have been processed through to the point of having received bids for the rehabilitation. Based on program experience and a sampling of cases we have found that 40% of the clients must have items contained in the work write-up deleted to accommodate the County loan limits. Further, the County was a recipient of SB 966 funds in FY 79-80. As of this date three state deferred loans are being processed with four additional clients pending further processing. This gives us a strong sense that additional supplemental funds could be used effectively. 5d) Units and Households to Benefit With the additional SB 966 funds we would expect to be able to assist approximately 25 households (assuming $6,000 per supplementary deferred loan). The persons benefitting would be predominantly very low income (60% and low income (40%). These estimates are based on the existing client load and their income characteristics. 5e) Conformance with Housing Element & Housing Assistance Plan The County Housing Assistance Pian identifies the housing rehabilitation program as a specific means of providing assistance to low and moderate income households. To the extent that the SB 966 will allow for the provision of assistance to households whom we could not otherwise assist given current loan limits, the level of assistance will be increased. r • The County Housing Element of. the General Plan is currently in public hearing before the three Planning Commission with jurisdiction in the unincorporated County. Board of Supervisors hearings on the draft Housing Element are scheduled for late July or August. The State Deferred Payment Rehabilitation Loan Program would be an exten- sion of the County housing conservation/neighborhood preservation efforts. These programs would further housing goals and policies of the draft element. The following goals and policies speak to this: - Housing Conservation and Neighborhood Preservation Goals a. The quality and diversity of neighborhoods within Contra Costa County should be preserved and enhanced. b. The existing housing supply should be maintained within the finan- cial means of Contra Costa County households. C. Substandard housing should be upgraded, and neighborhood deterio- ration should be stopped and reversed. Housing Conservation & Neighborhood Preservation Policies a. THE COUNTY WILL CONTINUE TO UNDERTAKE ASSISTED HOUSING CONSERVATION EFFORTS TO PROMOTE THE CON- SERVATION OF THE COUNTY HOUSING STOCK. b. THE COUNTY WILL EVALUATE AND PURSUE, WHERE PRACTI- CAL, OTHER PROGRAMS AND FINANCING MECHANISMS AVAIL- ABLE TO CONSERVE ITS STOCK. C. THE COUNTY WILL DESIGNATE NEIGHBORHOOD PRESER- VATION AREAS WHERE HOUSING AND COMMUNITY DEVELOP- MENT ASSISTANCE WILL BE CONCENTRATED TO ARREST DECLINE AND STABILIZE NEIGHBORHOODS. 50 Need for Funds See 5b above 5g) Local City or County Approval Not Applicable 5h) .Avoidance of Displacement Under the provisions of the County policies governing the program any rental property owner assisted must agree that 1) rents and other charges shall not be increased beyond actual increases in taxes, and the precentage increase in the Bay Area cost of living index issued by the U.S. Department of Commerce; or i • ,• 2) the units to be rehabilitated will be rented to low- and moderate income families utilizing the Federal Section 8 Existing Unit Rental Subsidy Program. The provision of rehabilitation assistance to homeowners will allow there to affordably bring their home up to standard. 6) Information on Rental Housing Developments. Not Applicable 7) Schedule of Activities Application Acceptance & Processing Ongoing 1st Quarter Fund Commitments $ 35,000 2nd Quarter Fund Commitments 359000 3rd Quarter Fund Commitments 40,000 4th Quarter Fund Commitments 409000 8) Personnel & Qualifications The biographies below are for County Housing Rehabilitation Program staff: Janet Haroutunian - Administrative Services Assistant II Ms. Haroutunian has also been with the Neighborhood Preservation Program since 1977. As the program administrative person, her primary duties include the processing of the rehabilitation loan application and the determination of financial eligibility. She also reviews the Lot Book reports and prepares the applications for the Lending Institution. Other duties include monthly reporting on each of the seven target areas, a monthly budget report, and the preparation of the annual Program Budget. She also attends community meetings and offers referral information when possible. William Martindale - Special Programs Coordinator Mr. Martindale joined the Contra Costa County Building Inspection Department in May 1979. As the Special Programs Coordinator, he is responsible for all work regarding Mobile Homes, Abatements, and Demolitions, Restoration of Service, and Code Compliance. A major portion of his time is spent with the Housing Rehabilitation Loan Program. In his capacity as Coordinator he supervises all inspectors and acts as r the Departments representatives when there are disputes between homeowners and contractors. Mr. Martindale came to Contra Costa County after 15 years of service for the City of E1 Cerrito. As the Building Official for the city his experience included Plan Checking, Inspection, Zoning enforcement and overseeing the city's FACE Program. RECEIVED • CONTRA COSTA COUNTY jum 1980 PLANNING DEPARTMENT J. R. OLSSON CLERK BOARD OF S PERVISORS n OS B 7-960) B .....ILL. TO: M. G. Wingett DATE: June 2, 198i�, County Administrator FROM: Anthony A. Dehaes SUBJECT: Deferred Payment Director of Plannin Rehabilitation Loan Fund In late 1978 the State Legislature passed SB 966 (Marks) which created a program of deferred payment loan/funds to assist low and moderate income households in the rehabilitation of their/housing. The State, through the Department of Housing and Community Development (HCD), will lend funds to local government agencies who, in turn, lend to eligible property owners. The loans are in the form of deferred loans with 3% interest on the original principal. Attachment A describes the program provisions. Local government agencies eligible to participate in this program are those with operational housing rehabilitation programs. The County was a recipient of a $50,000 allocation under the first round of allocation for this program. To date three supplementary loans have been originated, and four additional loans are being processed. The Deferred Payment Rehabilitation Loan Fund is considered to be a supplementary source of rehabilitation financial assistance, i.e., it should not be utilized to replace local housing rehabilitation funds. Loans made available from the Deferred Payment Loan fund would be utilized to cover the costs of rehabilitation which are in excess of what the County can currently provide. The two funding sources acting in tandem could result in the County having the capabilities to assist more families in need of rehabilitation assistance. Administrative costs for the program cannot be paid out of the Deferred Payment Loan Fund. The federal Community Development Block Grant funds allocated to the County Building Inspection Department would be utilized to Cover administrative costs. Additional costs are minimal. Additional staff processing time of approxi- mately one hour is necessary to prepare the necessary loan documents. Monitoring of the rehabilitation work is a current function of the program and no additional time is required. The preparation of quarterly progress reports would require approximately four staff hours per quarter. The benefits of the additional rehabilitation funds, and the likelihood that families who might not otherwise be able to receive financial assistance can be assisted, seem to far outweigh the small incremental costs of administration. The State is currently soliciting Requests for Proposals from local agencies for use of these funds in Fiscal Year 1980-81. The attachment summarizes the provisions of the program. I recommend that the Board authorize the submittal of a proposal for the use of additional Deferred Payment Loan Funds. The Program is another source of funds by which the County can provide rehabilitation assistance to low and moderate income households. Please schedule this before the Board of Supervisors on June 10, 1980 for their consideration. AAD:ag Attachment In the Board of Supervisors of Contra Costa County, State of California June 10 019 80 In the Matter of Authorizing the Execution of Amendment #1 to Loan Agreement Pursuant to State Deferred Payment Rehabilitation Loan Program (#79-HRL-11) WHEREAS, the County has entered into a loan agreement with the State to originate supplementary deferred payment loans for housing rehabili- tation in certain communities; and WHEREAS, the State has indicated their approval of adding two communities - Crockett and Vine Hill - to the approved list of communities for purposes of implementing the program; NOW THEREFORE IT IS BY THE BOARD ORDERED that the Chairwomen is hereby authorized to execute Amendment #1 to contract #79-002 HRL-11 , PASSED BY THE BOARD on June 10, 1980. I hereby certify that the foregoing is a true and correct copy of an order entered on the minutes of said Board of Supervisors on the date aforesaid. Orig: Planning Department Witness my hand and the Seal of the Board of cc: Building Inspection Supervisors County Administrator affixed this 10th day of June 19 80 County Auditor J. R. OLSSON, Clerk By. Deputy Clerk RdJ. Fluhrer H-24 3/79 15M • I I ❑ CONTRACTOR %STAN`DARD AGREEMENT — AP ED BY THE AT FY GENERAL ❑ STATE AGENCY STATE OF.CAL A IRl:V. 11/75? C®NTRACTOA COPY r-1 DEPT, OF GEN, 5ER. ❑ CONTROLLER THIS AGREEMENT, made and entered into this 19th day of May 1980 ❑ in the State of California, by and between State of California, through its duly elected or appointed, ❑ qualified and acting ❑ II TI.1 OF OFFICER ACTING 101 STATE AGENCY NUMBER Chief, Administrative Services IDepartment of Housing & Community Develo ment 79-002 HRL-11 heron(for enlled Ihl!State. t)nd COUNTY OF CONTRA COSTA (local government bert)alter collod flit)Contracto r ' AMFNOMFNT #1 TO CONTRACT NUMBER 79-002 HRL-11 WITN ESSETI1: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State hereinafter expressed, does hereby agree to furnish to the Stale services and materials, as follows: ISeI 111101 acr%'i,A! le Im ouidowd by f:nutrm:0ur,nnunnit hl ba lipoid Contractor.lima for INlrformance or coinpintion,and atloch plans and stwcificotions,if eny.l Existing contract is amended to add areas of Crockett and Vine Hill to presently approved areas as set forth in the application attached to and made part of the original contract as Attachment "A". Crockett and Vine Hill are CDBG Target Areas in the County of Contra Costa and were approved as eligible areas by the Loan Committee of the Deferred Payment Rehabilitation Loan Program on May 15, 1980. (Maps attached) . The areas in the original contract and those added by this amendment are the areas wherein Contractor may make loans pursuant to the original contract. The provisions on the reverse side hereof constitute a part of this agreement. IN WITNESS MIEREOF, this aKreement has been executed by the parties hereto, upon the date first above written. STATE OF CALIFORNIA -CONTRACTOR AGLNC! CONTRACTOR or OTHER THAN AN INDIVIDUAL. STATE WHETHER A CORPORATION PARTNERSHIP, ETC.) Department of Housing & Community D government) BY IAUIIIOIUJISO SIGNATURE' BYIA THORIZED SIGNATURE) I' I► rI rLE TIT 'Boar of Supety Chief Administrative S r i Efiairman, �694acostacounty ADDRESS P. O. Boa 911 ICON IINUED ON=1=S"EC TS. LACII UEARING NAMII O1-' CONTRACTOR) D ep arfnwhf DI General SCIViCCS _ AMOUNT ENCUMBERED APPROPRIATION FU NAI] �O�SZ.Ag.-,Re:h'a!b•71+'it" Use ONLY i o Fund UNENCUMBERED BALANCE ITEM CHAPTER STATUTES FISCAL YEAH $ 733-001-0000 11979-80 ADJ.ANCHI.ASING ENCUMBRANCE FUNCTION 02 06-04-00 ADJ. DECREASING ENCUMBRANCE LINE ITEM ALLOTMENT S Rehab Loans to Local nme t/Nonprofit Corp. • I hereby corlify upon my Own peruonul knowlimIgo thol budgellod food. T.B.A. NO. B.R. NO. are uvuiloblo for flit)perlrxl and purpose of [tie expendihire stated above. SIGNATURE OF ACCOUNTING OFFICER DATE herehy certify that all Conditions for exemption sol forth is Stahl Administrative Ahmml Section 12na hove Won complied with and this document is exempt from review by th" Deportment of Pinunce. SIGNATURE OF OFFICER SIGNING ON BEHALF OF THE AGENCY DATE Y�. t•_ r „1 1. Tho Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, matcrialmen, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of this contract, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may he injured or damaged by the Contractor in the performance of this contract. 2. The Contractor, and the agents and employees of Contractor, in the performance of this agreement, shall act in an independent capacity and not officers or employees or agents of State of California. VI 3. The State may terminate this agreement and be relieved of the payment of any consideration to Contractor should Contractor fail to perform the covenants herein contained at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner doomed proper by the State. The cost to the State shall be deducted from any sum doe the Contractor under this agreement, and the balance, if any, shall be paid the Contractor upon demand. 4. Without the written consent of the State, this :agreement is not assignable by Contractor either in whole or in part. 5. 'Time is the essence of this agreement. 6. No alteration or variation of the terms of this contryct shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, shall he binding on any of the parties hereto. 7. The consideration to be paid Contractor, as provided herein, shall be in compensation for all of Contractor's expenses incurred in the performance hereof, including travel and per diem, unless otherwise expressly so provided. /u //Ihh. /`�+'S��C;\>;4.�,�.hip✓.;";� :'cam` ,; ^'i r.V, � �/ � � r ' � 4 t� 9 .............:..:............•- R 9 o 4 V RJ l� 1f � � f t r c �C \ r g104e �i PgpP Op • a CROCKETT HOUSING REHABILITATION TARGET AREA 1 f - r � Y 2 w T yt O N 1\\ t A tl 1\ 1t l 0 0 P ✓' �.o � no th • 1 I I � :Fx,4pg4fn 1' 1111E SQL / F rt 5 � e VINE HILL HOUSING REHABILITATION TARGET AREA Contra Costa Count CONTRA COSTA COUNTY R=CEIVED y PLANNING DEPARTMENT MAY 2 81980 Office of County Adrninistrat TO: M. G. Wingett DATE: May 27, 1980 Or County Administrator FROM: Anthony A. Dehaes SUBJECT: Amendment to Existing State Director of Planni Deferred Payment Rehabilitation Loan Program Contract On .November 13, 1979 the Board of Supervisors authorized the execution of a Loan Agreement and related documents with the State to originate Deferred Payment Rehabilitation Loans. Under the terms of the agreement the County would be able to borrow up to $50,000 from the State with whch to originate supplementary Deferred Loans to financially eligible homeowners seeking to rehabilitation their home. The loans to individuals would be deferred, i.e., payment would .not be required for at least 5 years or until property transfer, as would the payments by the County to the State. The attached summary describes the program. The existing contract allows for the use of these funds in 6 Housing Rehabilitation Target Areas - North Richmond, Montalvin Manor, Rodeo, Mt. View, West Pittsburg and Oakley-Sandhill. The State recently indicated that two additional communities could be added - Crockett and Vine Hill. The purpose of the contract amendment is to add these two communities, and does not change the term, or the amount of the contract. Please schedule this item before the Board on June 3, 1980 for their consideration. AAD:agld J 1(] ov PERS\SOBS R. SV Gp. De OX0 50RO SC In the Board of Supervisors of Contra Costa County, State of California November 13 019 79 In the Matter of AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT, PROMISSORY NOTE, AND OTHER DOCUMENTS TO SECURE A DEFERRED PAYMENT REHABILITATION LOAN FROM THE STATE OF CALIFORNIA. WHEREAS, pursuant to Sections 50660 50668 of the California Health and Safety Code, the California Department of Housing and Community Development (hereinafter referred to as the State) is authorized to make deferred loans for the rehabilitation of housing in designated areas; and WHEREAS, Contra Costa County, a local public agency organized under the statutes of the State of California, is enabled and eligible to receive said loans; NOW THEREFORE IT IS BY THE BOARD ORDERED that the County be hereby authorized to incur an indebtedness and to enter into an agreement with the State to borrow an amount not to exceed $50,000 for the purposes of lending deferred payment loans for housing rehabilitation; and THAT the County be hereby authorized to give a promissory note and other appropriate instruments to the State to evidence said debt and to secure said note; and THAT the Chairman is hereby authorized to execute in the name of the County said Loan Agreement, note and other documents required to consumate this transaction. PASSED BY THE BOARD on November 13, 1979. 1 hereby certify that the foregoing is a true and correct copy of an order entered on the minutes of said Board of Supervisors on the date aforesaid. Witness my hand and the Seal of the Board of cc: Planning Department Supervisors U. S. HCD affixed this 13th day of Nf)ypmhPr 1929 County Administrator County Auditor / J. R. OLSSON, Clerk By ". Fluhrer /7n2 , Deputy Clerk H - 24 4/77 15m �� D ERRED PAYMENT REHABILITATION LOANS PROMISSORY NOTE • SECURED BY AGREEMENT TO ASSIGN DEEDS OF TRUST (STATE/LOCAL LENDER) $ 50,000 Local Lender County of Contra Costa Loan No. 79-002 Date JNOV 13 1979 FOR VALUE RECEIVED, the undersigned (hereinafter, "Local Lender") promises to pay in lawful money of the United States to the order of the State of California, Department of Housing and Community Development (here- inafter referred to as the "State") , at its principal place of business in Sacramento, California, or at such other place as the State may designate, the principal sum of Fifty Thousand and 00/100 dollars ($ 50,000 ) or such lesser amount as shall equal the aggregate amount disbursed to the Local Lender by the State, together with interest on the unpaid principal computed from the date each disbursement to the Local Lender is disbursed by the State until repaid by the Local Lender, at the simple interest rate of Three percent ( 3 %) per annum. Provided that the obligation of the Local Lender to repay principal and interest under this loan shall be limited to those amounts actually recovered from each loan made by the Local Lender to a local borrower. It is further provided that the entire sum, subject to the limitation on the obligation of the Local Lender as set forth above, including any interest, is due and payable six years from the date of this Note's execu- tion or in increments upon repayment of principal and interest loaned by Local Lender to local borrowers, if such increments are repaid earlier. Payment of any installment shall be first applied to accrued interest to the date of receipt of the installment, and the balance, if any, to principal . Local Lender may prepay this note in full or in part, without penalty, but any such prepayment shall be first applied to accrued intere , and the balance, if any, to principal . , a..d su6Jec The indebtedness evidenced by this Note is made pursuant^to a Loan Agreement between the Local Lender and the State dated July 25, 1979 and is secured as follows: ( Item of Security) (Dated) Agreement to Assign Deed of Trust November 21 , 1979 Promissory Note and Loan Agreement Local Lender hereby represents and warrants to State, and covenants as follows: (a) The execution, delivery, and performance pursuant to this Note are not in contravention of law or any indenture, agreement, or undertaking to which Local Lender is a party or by which it is bound and the same are within Local Lender's powers, and have been duly authorized and are not in contraven- tion of its charter, by-laws, or other sources of authority. 9/18/79 F Promissory Note State/Local Lender -' Page 2 (b) Local Lender has, or at the time of execution, delivery, and per- formance of this Note, will have lawful right to obtain the security and has unqualified right to assign and grant liens and security interests to the State therein. On the occurrence of any event of default, the State, at its sole election, may declare after 60 days written notice to Local Lender all or any portion of the principal and interest on this Note to be immediately due and payable, subject to the limitation on the obligation of the Local Lender as set forth above, and may proceed thereafter at once without further notice to enforce this Note according to law. Local Lender agrees to pay all reasonable collection costs, including but not limited to, attorney's fees and court costs. Each of the following occurrences shall constitute an event of default: (a) Failure of the Local Lender to repay any principal and interest when due under the terms of this Note or to obtain an extension thereof at the time, place, and manner specified in said Loan Agreement; (b) Termination of said Loan Agreement pursuant to the terms thereof or breach by the Local Lender of any terms of said Loan Agreement; (c) Failure of the Local Lender to undertake in a timely way the express and implied activities for which said Loan Agreement has been executed, or a substantial reduction by Local Agency in the scope of said activities. No delay or failure of State in the exercise of any right or remedy hereunder or under any other agreement which secures or is related hereto shall affect any such right or remedy, and no single or partial exercise of any such right or remedy shall preclude any further exercise thereof, and no action taken or omitted by State shall be deemed a waiver of any such right or remedy. Each maker, endorser, surety, and guarantor of this Note hereby severally waives demand, protest, presentment, notice of nonpayment, notice of protest, notice of dishonor, and diligence in bringing suit against any party and does hereby consent that time of payment of all or any part of said amount may be extended from time to time by the State without notice. Any notice to the Local Lender provided for in this Note shall be given by mailing such notice by certified mail addressed to Local Lender at, or to such other address as Local Lender may designate by written notice to State. Any notice to State shall be given by mailing such notice by certified mail , return receipt requested, to State at the address stated in the Loan Agree- ment, or at such other address as may have been designated by written notice to Local Lender. 9/18/79 Promissory Note State/Local Lender Page 3 If suit is brought to collect on this Note, the prevailing party shall be entitled to collect all reasonable costs and expenses of said suit, in- cluding reasonable attorney's fees. This Note shall be binding upon Local Agency and its successors and assigns and upon the State and its successors and assigns. This Note shall be construed and enforced in accordance with the Laws of the State of California. Signed C "a By Hasseltine Title Chairman, Board of Supai visorb Attest: v 9/18/79 AGREEMENT TO ASSIGN DEED OF TRUST, PROMISSORY NOTE AND LOAN AGREEMENT FOR VALUE RECEIVED, the receipt and sufficiency of which is hereby acknowledged, County of Contra Costa hereinafter, "Local Lender" , agrees to assign to the STATE OF CALIFORNIA, DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, hereinafter, "Department", at such a time as a default or breach is declared with respect to Local Lender' s responsibilities under the Loan Agreement between Local Lender and Department dated Jul 25 19 79 or on the date Local Lender terminates its activities y _, pursuant to such Agreement, all Deeds of Trust demanded by Department which represent security for all loans to local borrowers made by Local Lender with funds received from Department pursuant to the Deferred-Payment Rehabilitation Loan Program (SB 966) . SAID DEEDS OF TRUST cannot be specifically identified in this document, but records of same shall be maintained by Local Lender and Department. THIS AGREEMENT is entered into for purposes of security on the Promissory Note between Local Lender and Department, dated November 13, , 19 79, and shall 'be cancelled upon full tender and payment of all sums due under said Note. Notwithstanding the terms of this Agreement, any Deed of Trust obtained by Local Lender as security for a Deferred-Payment Loan Program loan to a local borrower shall be cancelled and reconveyed upon repayment to Local Lender by a local borrower and repayment of said sum, including interest, by Local Lender to Department. THE ASSIGNMENTS made pursuant to this Agreement shall be with recourse and Local Lender agrees , represents, warrants, and covenants as follows: 1 . Upon default or termination of activities , or anticipation of same, if earlier, to execute any documents necessary to Department' s acquisition of and ability to exercise or assign the Deeds of Trust granted by local borrowers to Local Lender. 2. To perform all duties and responsibilities pursuant to said Deeds of Trust, and in the event of any failure to perform such responsibilities , to notify Department immediately and in writing of any anticipated or actual fail - ure to perform. 3. To not sell , assign, transfer, or otherwise convey its rights or res- ponsibilities pursuant to said Deeds of Trust to any other person or entity. 4. To appear in and defend any action or proceeding affecting or purporting to affect the abovessid Deeds of Trust or the real property subject thereto, and/or commence any action or proceeding deemed necessary by Local Lender or Department to perfect, maintain, or protect said Deeds of Trust and the interests , rights, powers, and/or duties pursuant thereto, all in such manner and to such extent as is appropriate, and to give prompt notice to Department of such activities . 5. That it has no knowledge of any fact or law which would impair the validity or enforceability of this Agreement and has the lawful and unqualified right to assign the Deeds of Trust to Department. 7/7/79 Agreement to Assign image 2 6. That, is the event of a default or violation of any of the warranties, covenants , terms, and conditions of this Agreement, a remedy at law may not provide adequate relief to the Department and that the Department shall be entitled to temporary and permanent injunctive or other equitable rdlief in case of any such breach, without the necessity of proving actual damages . 7. That in the event of default in this Agreement by Local Lender, that Department shall be entitled to reasonable attorneys fees and litigation costs incurred in the enforcement of this Agreement or the subject thereto. PURSUANT TO this Agreement, Department agrees that upon Local Lender's default or termination of activities, whichever is earlier, it shall accept assignment and undertake and perform the obligations of Local Lender under said Deeds of Trust. ON THE OCCURANCE of any event of default, Department, at its sole election, may declare the Assignment due, and demand, presentment and diligence in bringing suit is hereby waived. No delay or failure of Department in the exercise of any right or remedy hereunder or under any other agreement shall affect any such right or remedy, and no single or partial exercise of any such right shall preclude any further exercise thereof, and no action taken or omitted by Depart- ment shall be deemed a waiver of any such right or remedy. THIS AGREEMENT shall be binding upon and enure to the benefit of the parties hereto and their respective heirs, successors, representatives, and assigns. Time is of the essence in this Agreement. THIS AGREEMENT shall be effective when duly executed by both parties and on the date signed by the second party hereto. DATED: NOV 13 1979 19 By e zzl�t,- Local Lender Attest: Chairman, Board of Supervisors Ti tl e DATED: November 21 19 79 By //� ----'(State oT CTKfornia) Attest: C, ' �_ �� Chief, Administrative Services Title 711179 • l ? BY I� CONTRACTOR t STANDARD AG`REEh1ENT — ROVED GENEAlRC STATE AGENCY ❑ • STATE DF.CALIFO RNIA TO. 2 (REV. 11/]5) ❑ DEPT. OF GEN. SER. - ❑ CONTROLLER THIS AG'REZIMENT, made and entered into this 25 day of July 1979 , 1:1in the State of California, by and between State of California, through its duly elected or appointed, ❑ qualified and acting ❑ TITLE OF OFFICER ACTING FOR STATE AGENCY NUMBER Chief, Administrative Services Department of Housing and Community Development 19-0 o 2--1124- - [4 hereafter called the State,and County of Contra Costa (local government) hereafter called the Contractor. WITNESSETH: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State hereinafter expressed, does hereby agree to furnish to the State services and materials, as follows: (Set forth service to be rendered by Contractor,amount to be paid Contractor,time for performance or completion,and attach plans and specifications,if any.) Authority a. Pursuant to the criteria for eligibility and for the purposes authorized by Sections 50660-50668 of the California Health and Safety Code and the re- gulations published thereunder (at 25 Cal . Admin. C. Sections 7400-7436) , the Contractor has submitted to the State a Deferred-Payment Rehabilitation Loan Application No. 79-002 which is hereby incorporated as Attachment A and made a part of this agreement, b. Pursuant to the above sections and regulations, the State has approved Loan No. 79-002 to permit Contractor to loan funds to local borrowers for rehabi itation and provision of housing 'pursuant to Sections 50665-50668 of the California Health and Safety Code. C. To effect said loan, the State has decided to enter into this Loan Agreement with the Contractor according to the conditions hereinafter expressed. All references to "the-Fund!' shall refer to the Housing Rehabilitation Loan Fund of the Department of Housing and Community Development. This Agreement - incorporates andissubject to the laws and regulations cited above. ' The provisions on the reverse side hereof constitute a part of this agreement. IN WITNESS WHEREOF, this agreement has-been executed by the parties hereto, upon the date first above written. STATE OF CALIFORNIA CONTRACTOR AGENCY CONTRACTOR (Ir OTHER THAN AN I1401Y10UAL. STATE 'NHETNER A CORPORATION PARTNERSHIP, ETC.) Department of Housing and Community Development BY (AUTHORI NATURE) BY (AUTHO tPED SIGN/)TJAR E) I. TITLE TITLE Chairman, Board of Super Chief, .Administrative Services Ctiisc,ca ADDRESS 1P, 0• Box 951 'CONTINUED ON EACHSHEETS, ACH BEARING .NAME OF M ONTRACTORI artinP7. CA 4553 Department t of General Services AMOUNT ENCUMBERED APPROPRIATION FUND PHousing Rehabi 1 ita- use-ONtr S 6%0 opo, o c) Loan Fund or7ICY I UNENCUMBERED BALANCE ITEM CHAPTER STATUTES FISCAL YEAR B"°°_T " A/C 929-455 733-001-00-0 979-80 U ° '- '_'marcid Ssrv7ces 5 AOJ. INCREASING ENCUMBRANCE .FUNCTf ON ® S 02-06-04-00 DEC141979 ADJ. DECREASING ENCUMBRANCE LINE ITEM ALLOTMENT 10- GZ — Rehab Loans to localovlernment/non rofit Corp. I hereby certify upon my own personal knowledge that budgeted fund T.B.A. .NO. S.R. NO. _ are available for the period and purpose of the expenditure stated above SIGNAT OF ACCOUNTING O FICER GATE orf• of unset I hereby certify that all conditions for exemption set forth in State Administrative.Manual Section 1209 have been complied with and this document is exempt from review by the Department of Finance. SIGNATURE OF OFFICER SIGNING ON BEHALF, OF THE AGENCY DATEI 1 ) 1. The Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, materialmen, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of this contract, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by the Contractor in the performance of this contract. 2 The Contractor, and the agents;and employees of Contractor, in the performance of this agreement, shall act in an independent capacity and not as officers or employees or agents of State of California. 3. The State may terminate this agreement and be relieved of the payment of any consideration to Contractor should Contractor fail to perform the covenants herein contained at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. The cost to the State shall be deducted from any sum due the Contractor under this agreement, and the balance, if any, shall be paid the Contractor upon demand. 4. Without the written consent of the State, this agreement is not assignable by Contractor either in whole or in part. 5. Time is the essence of this agreement. 6. No alteration or variation of the terms of this contract shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, shall be binding on any of the parties hereto. 7. The consideration to be paid Contractor, as provided herein, shall be in compensation for all of Contractor's expenses incurred in the performance hereof, including travel and per diem, unless otherwise expressly so provided. • •County of Contra Costa 8. Purpose The Contractor agrees to expend all funds disbursed pursuant to this agree- ment only for the purposes and in the amounts that have been set forth in its Loan Application and to the extent they have been approved by the State. Contractor further agrees to solicit and approve local borrowers in accordance with the laws and regulations governing this program. 9. Amount and Disbursement Schedule a. Upon receipt of a certified resolution authorizing this agreement and the proper execution of a promissory note and the appropriate security instruments, the State agrees to disburse to the Contactor or its authorized agent funds not to exceed the total amount stated in Item I of Attachment B. b. The State further agrees to disburse said funds only for the approved purposes and itemized amounts stated in Item II of Attachment B. 10. Interest a. The loan herein shall bear simple interest at the rate of three percent (3%) per year on the principal balance of loan funds disbursed to the Contractor. Payment of said interest shall be due at the time of repayment of the loan to the State, and shall accrue from the time of disbursal to Contractor until receipt of repayment by State. b. Interest shall be waived if and to the extent that the Contractor remits in advance to State a sum equal to and not less than 15% of the original principal amount of the loan. Prepayment of any portion or all of such a loan shall not entitle Contractor to return of any such prepaid interest. 11 . Term a. The effective date of this agreement is the date on which it is approved by the State of California, Department of General Services. Where state law does not require this agreement to be approved by the Department of General Services, the effective date of this agreement shall be the date of its execution by the State Department of Housing and Community Development. b. The Contractor agrees to complete performance of its obligations under this agreement within the period stated in Item III of Attachment B. 12. Promissory Note and Security a. To evidence its debt to the State hereunder, the Contractor agrees to execute and deliver to the State a promissory note for the total loan amount in a form approved by the State. b. To secure the loan, the Contractor small give the State the security in- terests specified. in Item IV of Attachment B which may include an Agreement to Assign Deedsof Trust for each property rehabilitated in whole or in part with funds from the Fund and will cause such security interests to be recorded. C. Prior to lending funds received pursuant to this Agreement, the Contractor shall require the property owner to: Ci ) Execute a promissory note, at the appropriate rate of interest, and a loan agreement. Each document shall be in a form determined or approved by the State. (ii ) Execute a deed of trust to secure said note, which shall be specifically assignable to the State. (iii ) Obtain, at the expense of the property owner or Contractor on loans to borrowers of $5,000 or more, a Preliminary Title Report and a standard ALTA Title insurance policy for the security property, insuring the State's interest as lender in said property. For loans under $5,000, a Preliminary Title Report shall be obtained for said property at the expense of the property owner or contractor. (iv) Agree not to convey, mortgage or allow any subsequent lien to attach to the property securing the note without the prior written approval of the State. d.. Prior to lending funds received pursuant to this Agreement, the Contractor shall for each loan: (i) Ensure that all required documents are properly completed, executed, and recorded; and (ii ) Ensure that the combined value of existing encumbrances and the cost of rehabilitation and related expenditures shall not exceed 90ro of the anticipated post-rehabilitation value of the residential structure. A valuation report on the property shall be prepared by the Contractor or its agent containing values of at least three comparable properties. 13. Accounts a. If requested by the State, the Contractor agrees to deposit all funds re- ceived under this agreement in a segregated account in an institution with deposits insured by the federal or the state government, b. The Contractor further agrees to establish on its books an SB 966 Deferred Payment Rehabilitation Loan Account which shall be maintained as long as the loan obligation to the state remains unsatisfied. C. The Contractor further agrees to maintain records that accurately and fully show the date, amount, purpose, and payee of all expenditures drawn on said account. d. The Contractor further agrees to utilize a voucher system by which all ex- penditures from said account will be authorized and authenticated. e. The Contractor further agrees to allow the State, on written request, to have reasonable access to and the right of inspecting all records that pertain to said account and agrees to submit to an independent audit, if this should be requested by the State, at the expense of the Contractor. f. The Contractor further agrees to adopt program accounting procedures in order to ensure that contractor's disbursals are properly expended by or on behalf of the property owner including establishing on-site in- spections of rehabilitation and repairs, using progress payments to owners and contractors, and incorporating other- procedures commonly used by a reasonable and prudent lender. 14. Requests for Disbursals of Funds a. For each disbursal of funds from The Fund, the Contractor agrees to submit, in duplicate and in a form determined by the State, a written Request for Disbursal and to attach to said Request any documents required by the State. b. The Contractor shall submit said Request so as to be received by the State at least twenty (20) working days prior to the Contractor's need for the funds. 15. Disbursals a. The State agrees to provide disbursals based on the Request for Disbursal if the actions that are to be performed and documented by the Contractor are authorized by the statute, regulations, loan agreement, and schedule. b. The Contractor shall provide disbursals to or on behalf of the borrower • • County of Contra Costa only if they pay for activities which are proper pursuant to this Agreement and the Loan Agreement with the Borrower. 16. General Terms of Use of Funds a. Contractor shall not loan more than $10,000 of funds from The Fund on each dwelling unit repaired or rehabilitated, except that an additional amount up to $10,000 may be lent for room additions approved by the Contractor in accordance with the State's regulations. Contractor may use its own funds, or other funds, in addition to those from The Fund, if necessary to complete any rehabilitation or repair activity. In no circumstance shall the maximum deferred payment loan plus other indebtedness against the property exceed 90% of the anticipated after-rehabilitation value of the property. b. Funds from The Fund shall be used only for actual approved rehabilitation and repair costs on each subject property and shall not be used for govern- mental administrative costs, overhead costs, costs of collection or fore- closure, or other nonrehabilitation or non-repair costs. C. The total loan commitment from The Fund shall be committed by the Contractor within one year from the effective date of this Agreement. d. Funds from The Fund shall not be substituted for local or other funds avail- able to the Contractor for similar purposes. In addition, to the extent feasible, funds from The Fund shall be used with or as part of local funds available for similar activities. e. The Contractor agrees to minimize the impact of physical rehabilitation activities on tenants in a subject property to the extent feasible. To the extent feasible and where necessary to minimize displacement of tenents, rehabilitation activities, for example, shall include phased repairs, temporary or permanent relocation, or other similar measures as required by Government Code Section 7265.3. f. The Contractor agrees not to discriminate in the use of loans from The Fund due, in whole or in part, to the considerations, characteristics, or trends in the neighborhood surrounding the property to be rehabilitated with funds from The Fund unless the Contractor can demonstrate that such consideration in the particular case is required to avoid an unsafe and unsound business practice. The Contractor also agrees to comply with applicable Truth-in- Lending disclosure. requirements. g. Properties rehabilitated with loans pursuant to this Agreement must be located in CHFA Concentrated Rehabilitation Areas designated pursuant to Section 51302 of the Health and Safety Code; a Marks-Foran rehabilitation area designated pursuant to the Health and Safety Code commencing with Section 37910; or an area in which CHFA has allocated funds pursuant to Section 51311 of the Health and Safety Code. h. No more than one loan of funds from The Fund shall be made for any one residential unit. i . Loans from the Contractor to the borrower shall bear simple interest at the rate of 3% per annum on the principal balance from the time of disbursal by the Contractor until repayment to the Contractor unless interest is waived or reduced pursuant to paragraph 10b. of this Agreement. j. Loans to borrowers shall be for a term of five years or until sale or transfer of the property, whichever occurs first. k. Loans to borrowers may be used to finance innovative and/or cost-efficient methods of rehabilitation including "self-help," rehabilitation with trainee labor, etc. 1 . Loan Agreements with local borrowers shall include all provisions required by law and the regulations governing this program. M. The Contractor shall establish procedures to monitor and service the loans herein, including but not limited to: (i) Enforcing conditions of this Loan Agreement and the Loan Agreement between Contractor and the local borrower; (ii ) Assuring that real estate taxes and assessments are paid on time and that fire and extended coverage insurance is in effect at all times; (iii) Preventing or rectifying waste or abnormal deterioration of the security property; (iv) Assuring proper notification to the State in matters of loan repayment and other requirements of this Agreement; (v) Processing, investigating, and making recommendations to the State with respect to local borrowers ' requests for extensions of loans; and (vi) Preparing and reporting to the State recommendations with respect to assumptions of non-occupant-owner property loans. n. The State may review and approve the first proposed commitment by Contractor to an owner-occupant borrower prior to the Contractor's commitment of a loan. 17. Terms of Loans to Owner-Occupants a. The Contractor shall only lend funds from the Fund to low or moderate-income owner-occupants of one-to-four-unit properties. b. Loans of funds from The Fund shall be limited to the amount necessary to cover the cost of meeting rehabilitation standards which cannot be financed by a combination of funds otherwise available without exceeding the borrower's ability to afford shelter costs. C. Notwithstanding paragraph 16 j, of this Agreement, loans to elderly owner- occupant borrowers, or to those who become elderly during the term of the loan, shall be repayable to the Contractor only upon sale or transfer of the property securing the loan. d. Notwithstanding pargraph 16 j. of this Agreement, the Contractor shall renew a loan for additional five year terms, after State approval , if the borrower has remained an occupant of the property rehabilitated and is unable to refinance the loan then due for repayment. Contractor shall renew loans subject to this paragraph only for one five-year term at a time. e. Borrowers shall agree that, where feasible, units other than that occupied by the borrower shall be rented at affordable rents to low-income households. f. An owner-occupant borrower shall receive no more than one loan of funds from The Fund. 18. Terms of Loans to Non-Occupant-Owners a. The Contractor shall only lend funds from The Fund to non-occupant-owners of single-family or multi-family residential properties in which a significant number of the units are either occupied by low-income households or are vacant. b. Loans of funds from The Fund shall be limited to that amount necessary to avoid increases in debt service which would either cause rents to be not affordable to low-income tenants residing on the premises thereby resulting in permanent displacement or make it infeasible to use rent subsidies in order to provide affordable rents to low-income and very-low income households. C. The property owner receiving funds from The Fund shall agree, prior to receiving funds, to limit rents and rent increases and to abide by the Tenancy Standards and Procedures set forth at sections 7412(el and 7416 of the regulations incorporated herein until the loan is repaid. Said re- quirements shall be set forth in the Loan Agreement between the Contractor and the local borrower and shall be approved by the State. d. Notwithstanding paragraph 16 j. of this Agreement, the Contractor may renew if the Contractor reasonably determines that low-income occupant households will continue to receive affordable rents and otherwise benefit from residency in the rehabilitated units. Contractor shall only renew such • . County of Contra Costa loans for one five-year term at a time unless multiple five-year periods are essential to the feasibility of continuing benefits to low-income households. e. Prior to making a loan commitment to a local borrower, Contractor shall forward the loan application and loan document package to the State's Coordinator for this Agreement. Each such loan, and any extension thereof, must be approved by the State prior to a loan commitment or extension being made by the Con- tractor to the borrower. 19. Repayment a. Any loan repaid by or on behalf of a local borrower to the Contractor shall be repaid promptly by the Contractor to the State. b. Any loan funds disbursed to Contractor and not loaned to a local borrower shall be repaid to the State within 3 months of disbursal to the Contractor. C. Unless the events set forth in paragraph 19 a. and b. occur earlier, all funds disbursed hereunder shall be repaid to the State by Contractor no later than the date specified in the promissory note executed pursuant to paragraph 12. This date shall be subject to extension as set forth below. d. When repayment of the full loan is made, the State agrees to reconvey any security in any real property and endorse the promissory note and security instrument(s) accordingly. E. The Contractor agrees that neither failure to obtain any required permits, necessary subsidies, services, or financing, nor any other cause, releases the Contractor from its debt to the State except that repayment shall be limited to proceeds available from the sale of the property benefiting from funds from The Fund after repayment of superior encumbrances. f. The Loan Agreement between Contractor and the local borrower shall contain terms of repayment which comply with the law and regulations governing this program and shall be prepared by or approved by the State in form and substance. 20. Extension a. Notwithstanding the terms of Paragraph 19 c. , Contractor may apply to the State for an extension of this Agreement and its promissory note. The request shall state the reasons for the requested extension and shall project a new due date. b. The State, at its option, may extend this Agreement and the due date of the promissory note if it determines that such an extension will result in the performance of this Agreement and the achievement of the objectives of the loan made hereunder. C. The Loan Agreement between Contractor and the local borrower shall contain terms for extensions or repayment to Contractor which comply with the law and regulations governing this program. 21 . Default a. In the event the Contractor, for any reason, is unable to proceed with the rehabilitation activities approved by the State, the State may declare this Agreement to have been breached and shall be released from any further performance hereunder. b. In the event of any default or breach of the Agreement by the Contractor, the State may declare the note evidencing the loan from the State to be immediately due and payable. In said event, the Contractor agrees voluntarily to convey to the State all rights, title, and interest in any property securing the note and further agrees to convey all rights, title, and interest in all reports, tests, surveys, drawings, plans, maps, and other documents which are the product of funds disbursed under this Agreement, which voluntary conveyance does not necessarily constitute full satisfaction of the debt of the Contractor to the State. C. Notwithstanding paragraph 19 e. , if the State must undertake the foreclosure of security, or other reasonable collection activities, Contractor shall be liable for any such costs not reimbursed by the security. d. In the event there is a default in repayment by a local borrower or a violation by the local borrower of the Loan Agreement between a local borrower and Contractor, Contractor shall act promptly to ensure repayment or compliance with the Loan Agreement between the local borrower and the Contractor. Any costs thus incurred by Contractor shall not effect Contractor's duty of repayment to State of the loan herein, subject to proceeds obtained from the borrower or the security. 22. Reporting a. Every three (3) months from the effective date of this Agreement, or more often if reasonably required by the State, Contractor agrees to submit to the State a narrative and financial report that details the progress made on lending, rehabilitation, and occupancy activities to date; the amount of loan funds the Contractor is likely to request during the next three (3) months; the amount of repayment the Contractor is likely to make during the next three (3) months; any problems the Contractor is experiencing in program activities; any technical assistance the Contractor needs to accelerate or improve the program; and any other program information that may be required by the State. The State shall provide the Contractor with the format for the reports. b. At least once each year, in a form and at a time provided for by the State, the Contractor shall provide such information requested by the State with respect to summarizing all rehabilitation activities so as to assure com- pliance with this Agreement. This report shall comprise the fourth quarterly report referred to under subparagraph a. C. At a time specified by the State, but not later than thirty days after any loan commitment to a local borrower, the Contractor agrees to submit a statistical report to the State which details the number of units assisted with the loan, the estimated rehabilitation costs, the unit costs, and other relevant information requested by the State. d. Contractor agrees to grant the State permission and to obtain borrower and occupant permission in each instance to enter and inspect properties subject to this Agreement and to inspect all records of the Contractor relating to compliance with this Agreement. e. Contractor shall retain originals of all records related to use of funds from The Fund. Copies only shall be forwarded to the State when required or requested. 23. Special Clearance a. To the extent necessary, the Contractor shall satisfy the State that all of the requirements of the California Environmental Quality Act have been fulfilled and that appropriate permits from the California Coastal Commission have been obtained when required on local rehabilitation activities. b. The Contractor agrees that satisfaction of the requirements of this Paragraph shall be preconditions for any disbursal of funds hereunder. 24. Technical Assistance In the event the Contractor experiences difficulty in progressing with the rehabilitation activities approved by the State, the Contractor agrees to notify the State promptly of the difficulty and to accept whatever technical assistance Wounty of Contra Costa the State may, at its option, be able to provide. 25. Fair Employment Practices The Contractor agrees to comply with all the conditions required by the California Fair Employment Practices Addendum, Standard Form 3, which is identified as Attachment C. attached hereto, and made a part hereof. 26. State Coordinator The State Coordinator for this Agreement is Ken Uilliams, Deferred-Payment Loan Program Manager. 27. Special Conditions a. In addition to the general provisions of this Agreement, the special conditions set out in Item V of Attachment B must be satisfied before the State will advance any funds hereunder. b. Satisfaction of the aforesaid special conditions must be in a manner specified by or acceptable to the State. Ittachment "A" C.111Furni<l liolr,Irl:uuonl: o Ilrnrsin(I uid Community Development - Dr?fCrr( ,l_Nyniint, N01,.1(ri I i La Cion Prr)(1 ram OHCD/DPRP-1 ,APf'L ICA I f Ui! Application Number Date Received ��14• J G c� ,�, . DHCD Use Only I . GEINERAL Official ?lame of Local Agency: Contra Costa County Planning Department Address: P. O. Box 951, Martinez, Contra Costa, CA 94553 Street City County State ZIP Contact Person: James Kennedv Phone ( 415) 372-2035 2. LOAN REQUEST Total SB Q66 Loan Funds Requested: S 1U0,000 Estimated Amount of Other Funds to be Used with SB 0166 funds : S 800,000 Source of Other Funds : CDBG, 312, HO1il, Leveraged Funds from a Private Financial institution 3. CERTIFICATION AND EXECUTIOPI I hereby certify that the statements , facts , and information contained in this application and the documents and attachments submitted herewith are true and correct to the best of my knowledge and belief, By (Authorized Signature) 4-10._79 Chairman, Board of Supervisors DATE _ TITLE * The full application is on file at HCD, 921 10th St. , Sacramento, and is incorporated herein as if S,GtCP,TIJRE set forth in full . • Cuoty of Contra Costa ATTACHMENT B ITEM 1 Loan Amount (Paragraph 9a. ) FIFTY THOUSAND and 00/100 dollars ($50,000.00 ) ITEM II Authorized Purposes (Paragraph 9b. ) Purpose Amount Contractor to make Deferred-Payment $50,000.00 Rehabilitation Loans in accordance with the program regulations 25 Admin. C. Section 7400-7436, as may be amended from time-to-time and Contractor's Loan Application No. 79-002 (Attachment "A") ITEM III Completion Date (Paragraph llb. ) Seventy-Two (72) months from date of approval of this Agreement by the State Department of General Services, except that this Agreement shall be extended for additional increments of not more than sixty (60) months to cover loans to borrowers that are extended by Contractor with approval of the State and after approval by the Department of General Services. ITEM IV Security (Paragraph 12b. ) Contractor agrees to execute the "Agreement to Assign Deeds of Trust, Promissory Note and Loan Agreement" between the Contractor and the State, ITEM V Special Conditions (Paragraph 27a. ) None ATTACHMENT C FAIR EMPLOYMENT PRACTICES ADDENDUM 1. In the performance of this contract, the Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, sex*, age*, national origin, or physical handicap*. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, ancestry,sex*, age*, national origin, or physical handicap*. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising;layoff or termination;rates of pay or other forms of compen- sation; and selection for training, including apprenticeship. The Contractor shall post in conspicuous places, avail- able to employees and applicants for employment, notices to be provided by the State setting forth the provisions of this Fair Employment Practices section. 2. The Contractor will permit access to his/her records of employment, employment advertisements, applica- tion forms, and other pertinent data and records by the State Fair Employment Practices Commission, or any other agency of the State of California designated by the awarding authority, for the purpose of investigation to ascertain compliance with the Fair Employment Practices section of this contract. 3. Remedies for Willful Violation: (a) The State may determine a willful violation of the Fair Employment Practices provision to have occurred upon receipt of a final judgement having that effect from a court in an action to which Contractor was a party, or upon receipt of a written notice from the Fair Employment Practices Commission that it has investigated and determined that the Contractor has violated the Fair Employ- ment Practices Act and has issued an order, under Labor Code Section 1426, which has become final, or obtained an injunction under Labor Code Section 1429. (b) For willful violation of this Fair Employment Practices provision, the State shall have the right to terminate this Contract either in whole or in part, and any loss or damage sustained by the State in securing the goods or services hereunder shall be borne and paid for by the Contractor and by his/her surety under the performance bond, if any, and the State may deduct from any moneys due or that thereafter may become due to the Contractor, the difference between the price named in the contract and the actual cost thereof to the State. *See Labor Code Sections 1411. 1432.5 for further details. STU. ] (6/77) sww 75 a sr c osta co`�"'Y CONTRA COSTA COUNTY 0 F�VF PLANNING DEPARTMENT CT<9 Cot" Off ' q of IStrpta TO: M: G. Wingett DATE: October 23, 1979 r County Administrator FROM: Anthony A. Dehaes SUBJECT: Deferred Payment Rehabilitation Director of Planni Loan Program On April 10, 1979, th oar authorized the submittal of a proposal to the State Department of Housing ommunity Development (HCD) for the use of Deferred Loan Program Funds to unde ake housing rehabilitation in designated areas of the County. In May, HCD awarded Co ra Costa County $50,000 under the program. Created by SB 966 (Marks), the program provides deferred payment loan funds to assist low and moderate income households in the rehabilitation of their homes. The State, through HCD, lends funds to the County who, in turn, lend to eligible property owners. The loans are in the form of deferred loans with 3% interest on the original principal. All loan funds are secured by a deed of trust on the property. The Deferred Payment Rehabilitation Loan Fund is considered to be a 'supplementary source of re0abilitation financial assistance, i.e., it will not be utilized to replace local housing rehabilitation funds. Loans made available from the Deferred Payment Loan fund are to be utilized to cover the costs of rehabilitation which are in excess of what the County can currently provide. The two funding sources acting in tandem will result in the County having the capabilities to assist more families in need of rehabilitation assistance. Administrative costs for the program cannot be paid out of the Deferred Payment Loan Fund. The federal Community Development Block Grant funds allocated to the County Building Inspection Department would be utilized to cover administrative costs. In order to begin utilizing the Deferred Payment Rehabilitation Loan Funds, the County must execute and transmit to the State the attached documents including: 1) Standard Agreement (4 copies) 2) Promissory Note (4 copies) 3) Agreement to Assign Deeds of Trust, Promissory Note and Loan Agreement (4 copies) 'County Counsel has reviewed these documents. Clarification has been provided and changes have been approved by HCD based on County Counsel's comments (see attached County Counsel memo and response letter from HCD General Counsel). The change on page 1 of the Promissory Note must be initialed by the signator of the documents. I recommend that you place this matter before the Board of Supervisors for their consideration and approval. In so doing, additional Lthnabilitation funds would be available to improve the quality of housing for low and mo e�t� the County. A draft Board Order is attached. jl AAD:js NOV Attachment 1979 4'"' JMR. OLSSON CLERK BOSUPERVI6pRS7T ERV Bv.tt�,, j In the Board of Supervisors of Contra Costa County, State of California April 10 19 79 In the Matter of Authorizing the Submittal of a Pro- posal to the State of California De- partment of Housing and Com- munity .Development for Deferred. Loan Program (SB 966) IT IS BY THE BOARD ORDERED that the Planning Department is authorized to submit to the State of California Department of Housing and Community Development a proposal for the use of Deferred Loan Program Funds- to undertake housing rehabilitation,-and that the Chairman is authorized to sign said proposal. PASSED by the Board on April 10, 1979. I hereby certify that the foregoing is a true and correct copy of an order entered on the minutes of said Board of Supervisors on the date aforesaid. cc: Planning Department Witness my hand and the Seal of the Board of Community Services Supervisors County Administrator affixed this 10thday of April 19 1L County Auditor State Office of Housing & Community Development J. R. OLSSON, Clerk (via Planning) By. %aZ444AA, Deputy Clerk R. . Fluhrer H-24 3%/6 15m California Dopartment of (lousing _ and Community Development Deferred-Payment Rehabilitation Program DHCD/DPRP-1 APPLICATION Application Number Date Received DHCD Use Only 1 . GENERAL Official ?lame of Local Agency: Contra Costa County Planning Department Address: P. 0. Box 951, Martinez, Contra Costa, CA 94553 Street City County State ZIP Contact Person: James Kennedy Phone ( 415) 372-2035 2. LOAN REQUEST Total SB 966 Loan Funds Requested: 100,000 Estimated Amount of Other Funds to be Used with SB 966 funds : $ 800,000 Source of Other Funds : CDBG 312 HOHI, Leveraged Funds from a Private Financial Institution 3. CERTIFICATION AND EXECUTION I hereby certify that the statements , facts , and information contained in this application and the documents and attachments submitted herewith are true and correct to the best of my knowledge and belief. By (Authorized Signature) 4-10 79 Chairman, Board of Supervisors DATE TITLE SIGNATURE 3) Program Summary Statement In order to further assist families of .six unincorporated target comunities in rehabilitating their homes, Contra Costa County is requesting $100,00 in SB 966 funds. The funds would be utilized to supplement approximately $800,000 in CDBG and other funds which would be available for rehabilitation in fiscal year 1979-80.. The funds would be utilized to assist families in the six communities designated by CHFA as Concentrated Rehabilitation Areas (CRA). A description of each of the CRA's is presented below: 1) North Richmond (Census Tract 3650) - A community of 2,188 persons, North Richmond has the highest concentration of minorities in the county. With a median income of $3,667, North Richmond is also the poorest community in the county. Over 97% of the residents fall within the low and moderate income range. The County Housing Rehabilitation Program and the Home Maintenance Training and Counseling Program have been available to North Richmond residents since their inception three years ago. In addition, the county has allocated over $710,000 in Community Development funds to undertake a series of projects designed to complete sidewalk, curb and gutter improvements in the area, construct a senior center and to construct a child care center. 2) West Pittsburg (Census Tract 3141) - A relatively large community of 8,999 persons, West Pittsburg has a median income of $7,918. Over 72% of the families are of low and moderate income. The County Housing Rehabilitation Program and the Home Maintenance Training and Counseling Program have been available to West Pittsburg residents since their inception over three years ago. In addition, approximately $1,270,000 in Community Development funds has been allocated for park improvements , the acquisition and renovation of a surplus school for use as a neighborhood center, and park-day care improvements. 3) Montalvin Manor (Census Tract 3640) - A post-war subdivision of 2,001 persons, Montalvin Manor has a median income of $10,758. About 61% of the families are of low and moderate income. The County Housing Rehabilitation Program and the Home Maintenance Training and Counseling Program have been available to Montalvin Manor residents for about two years. In addition $640,000 in Community Development funds have been utilized to develop a neighborhood park to construct a neighborhood center/recreation building, construct a storm drain, and construct a. footbridge over railroad tracks separating the community from the neighborhood center. 4) Rodeo (Census Tract 3580) - A community of 5,333 persons, Rodeo has a median income of $10,875. Approximately 58% of the residents are of low and moderate income. The County Housing Rehabilitation Program and the Home Maintenance Training and Counseling Program have been available to Rodeo residents for about two years. In addition, over $650,000 in Community Development funds have been provided to acquire and renovate a building for use as a neighborhood center, renovate a day care center, purchase a bus to transport day care and neighborhood center participants, to complete needed frontage improvements. 5) Mountain View (Census Tract 3190) - About 60% of the families in this community of 3,057 persons are of low and moderate income. The median income is $9,622. The Housing Rehabilitation Program and the Home Maintenance Training and Counseling Program have been available to area residents for two years. In .addition, approximately $435,000 in Community Development funds have been allocated for park site improvements, to acquire a building to house a drug counseling center, to conduct a feasibility study of a possible neighborhood center, to develop a neighborhood center, and to undertake storm drainage improvements. 6) Oakley/Sandhill (Census Tract 3020) - This rural community is the most recent addition to the County Housing Rehabilitation Program. Oakley, a community of 2,978 persons, has been a target area for one year. The median income of Oakley families is $8,054. Over 70% of the households are of low and moderate income. To support the housing rehabilitation activities the county has allocated $445,000 to develop a neighborhood park, undertake street and frontage improvements and to implace sewer laterals. Further, two activities which serve the entire rural east county area have been funded. About $85,000 has been allocated to fund a program which packages loans for families seeking assistance from Farmers Home Admini- stration and over $1,200,000 has been allocated to acquire land and construct a service and recreation center in nearby Brentwood. It is estimated that approximately 30 households could be assisted with the SB 966 funds. Based on past history of the CDBG funded housing rehabilitation.program approximately 1/3.or 10 of the households would be senior owner-occupants. The County Housing Rehabilitation Program is part of a comprehensive Neighborhood Preservation effort which include rehabilitation home maintenance training and counseling, fair housing services and other physical improvements in the community (see earlier description). The home maintenance training and counseling program offers home maintenance training courses, a tool bank, financial counseling, a minor home repair program, a paint program and an energy conservation program which includes weatherization (insulating, weather-stripping, replacement of broken win- dows, etc.). Fair housing services are also offered through two CDBG funded non- profit organizations. They provide many housing-related services such as helping out in landlord/tenant matters, assisting persons who need subsidized housing, and dealing with complaints of housing discrimination. 40 NEIGHBORHOOD DATA FORM (Complete One Form For Each Neighborhood Where SB 966 Funds Would Be Used) Population (1975) Applicant Contra Costa County (city or county) 580,451 Name or Number of Neighborhood Montalvin Manor CHFA Concentrated Rehabilitation Area Yes Marks -Foran Area No Other Areas CD BG Target Area (indicate type) Neighborhood Population 2001 (1975) Total Dwelling Units (D.U. ) - From Housing Assistance Plan (HAP) 533 Number of D.U. ' s in Deteriorated Structures 397 Percent of D.U. ' s in Deteriorated Structures 74.5 Estimated Average Rehab Cost Per Deteriorated Unit F��O Owner Occupancy (Number and percent of total ) 32. (70 °>1 Renter Occupancy (Number and percent of total ) lgg_ (30 Family Median Income for County (1970 , or later if available) $ 19,200 Family Median Income Distribution for this Neighborhood (1970 , or later if available) $ 10,758 Neighborhood Population Breakdown By Income: Very Low (under 50°0 of median) 37 ( 7 Low (51%-8090 of median) 85 (16 %; Moderate (81110-120% of median) 250 (47 %) Ethnic Mix lhite 85:9 Spanish Surname 4,710 Black 4.3 Asian 0.9 % Other 4.1 * HUD estimate for family of four (1977) NEIGHBORHOOD DATA FORM (Complete One Form For Each Neighborhood Where SB 966 Funds Would Be Used) Population Applicant Contra Costa County (city or county) 580,451 Name or Number of Neighborhood Mountain View CHFA Concentrated .Rehabilitation Area Ya.c Marks -Foran Area No Other Areas CDBG Target Area (indicate type) Neighborhood Population 39557 (1975) Total Dwelling Units (D.U. ) - From Housing Assistance Plan (HAP) 1182 Number of D.U. ' s in Deteriorated Structures 839 Percent of D.U. ' s in Deteriorated Structures 71.0 Estimated Average Rehab Cost Per Deteriorated Unit 6,000 Owner Occupancy (Number and percent of total ) 770 (68 %) Renter Occupancy (Number and percent of total ) 363 (32 Family Median Income for County (1970 , or later if available) $ 191200 Family Median Income Distribution for this Neighborhood (1970 , or later if available) $ 9,622. Neighborhood Population Breakdown By Income: Very Low (under 50% of median) 261 (23 %) Low (51%-80% of median) 227 (20 %) Moderate (81%0-IM. of median) 306 (27 %) Ethnic Mix White ql_0 % Spanish Surname 6.9 °6 Black �_g % Asian 0.4 % Other 0.8 % * HUD estimate for family of four (1977) NEIGHBORHOOD DATA FORM (Complete One Form For Each Neighborhood Where SB 966 Funds Would Be Used) Population Applicant Contra Costa County (city or county) 580,1451 Name or Number of Neighborhood North Rich mond CHFA Concentrated Rehabilitation Area Marks -Foran Area No Other Areas C DBG Target Area (indicate type) Neighborhood Population 2,194 (197_) Total Dwelling Units (D.U. ) - From Housing Assistance Plan (HAP) 919 Number of D.U. ' s in Deteriorated Structures 487 Percent of D.U. ' s in Deteriorated Structures 53.0 Estimated Average Rehab Cost Per Deteriorated Unit 65000 Owner Occupancy (Number and percent of total ) 303 ( 33 %) Renter Occupancy ("lumber and percent of total ) 616 ( 6 °0, Family Median Income for County (1970 , or later if available) $ 19o200 Family Median Income Distribution for this Neighborhood (1975) (1970 , or later if available) $ 3,667 Neighborhood Population Breakdown By Income: Very Low (under 50°0 of median) 319 (62 %; Low (510/10-80% of median) 140 (17 %) Moderate (81010-120% of median) 108 k 1 %) Ethnic Mix i•lhite 7.1 % Spanish Surname 1.9 Black 88.5 _% Asian �_� % Other 02 " * HUD estimate of family of.four (1977) NEIGHBORHOOD DATA FORM (Complete One Form For Each Neighborhood Where SB 966 Funds Would Be Used) Population Applicant Contra Costa County (city or county) 580,451 Name or Number of Neighborhood Oakley-Sandhill CHFA Concentrated Rehabilitation Area Yes Marks -Foran Area No Other Areas C DB G Target Area (indicate type) Neighborhood Population 2,299 (197_5) Total Dwelling Units (D.U. ) - From Housing Assistance Plan (HAP) 1140 Number. of D.U. ' s in Deteriorated Structures 775 Percent of D.U. ' s in Deteriorated Structures 68% . Estimated Average Rehab Cost Per Deteriorated Unit F.nOn Owner Occupancy (Number and Percent of total ) SFR ( 70 Renter Occupancy (Number and percent of total ) _324 ( 30 Family Median Income for County (1970 , or later if available) $ 197200 Family Median Income Distribution for this Neighborhood (1970 , or later if available) $ 8.054 Neighborhood Population Breakdown By Income: Very Low (under 5010 of median) 328 (30 Low (51%-80% of median) . 273 ( 25 %) Moderate (810/.-120% of median) 317 ( 29 %) Ethnic Mix White. 77.4 % Spanish Surname 19.3 % Black 0.5 % Asian 0.8 % Other 2.1 * HUD estimate for family of four (1977). NEIGHBORHOOD DATA FORM (Complete One Form For Each Neighborhood Where SB 966 Funds Would Be Used) Population Applicant Contra Costa County (city or county) 5807451 Name or Number of Neighborhood Rodeo CHF,A Concentrated Rehabilitation Area Yes Marks -Foran Area No Other Areas . ( n BG Target Area (indicate type) Neighborhood Population 5,333 (1975 ) Total Dwelling Units (D.U. ) - .From Housing Assistance Plan (HAP) 1928 Number of D.U. ' s in Deteriorated Structures 211 Percent of D.U. 's in Deteriorated Structures fi2_R Estimated Average Rehab Cost Per Deteriorated Unit 6,000 Owner Occupancy (Number and percent of total ) 1292 (70 %) Renter Occupancy (Number and percent of total ). 636 ( 30 Family Median Income for County (1970 , or later if available) $ lg@ .0� 0 Family Median Income Distribution for this Neighborhood (1970 , 'or later if available) $ X875 Neighborhood Population Breakdown By Income: Very Low (under 50% of median) 443 ( 24 %) Low (51%-80% of median) 517 (28 Moderate (8110-120% of median) 498 ( 27 Ethnic Mix i,lhi to 79.5 % Spanish Surname 6.0 Black 2.7 % Asian 1.2 % Other 9.7 *.HUD estimate for family of four (1977) NEIGHBORHOOD DATA FORM 'Complete One Form For Each Neighborhood Where SB 966 Funds Would Be Used) Population Applicant Contra Costa County (city or county) 580,451 Name or Number of Neighborhood West Pittsburg CHFA Concentrated Rehabilitation Area yes Marks -Foran Area No Other Areas C D BG Target Area (indicate type) Neighborhood Population 87999 (197 ) Total Dwelling Units (D.U. ) - From Housing Assistance Plan (HAP) 3563 Number of D.U. ' s in Deteriorated Structures vnaa Percent of D.U. ' s in Deteriorated Structures . 58% Estimated Average Rehab Cost Per Deteriorated Unit 6,000 Owner Occupancy (Number and percent of total ) 2136 ( 67 %) Renter Occupancy (Number and percent of total ) 1052 ( 33 Family Median Income for County (1970 , or later if available) $ 19,200 Family Median Income Distribution for this Neighborhood (1970 , or later if available) $ 79918 (Neighborhood Population Breakdown By Income: Very Low (under 5000 of median) 893 ( 28 %j Low (51%-8070 of median) 1020 ( 32 %/ Moderate (81%-120% of median) 861 ( 27 %) Ethnic Mix •Ihi to 79 1 Spanish Surname 6,7 Black — 11-4 % Asian Ln °0 Other 1.9 % * HUD estimate for family of four (1977) iII:C1171 NON-OC,Cl1fANT-QIJM(aZ PROPERTIES _(.RENTALS) FORM [ P the local agency has plans to make loans or use code enforcement on already identified rental properties of 5 or more units , complete the following (attach additional sheets if more than one property) : Name of property, if any: None Name of Owner/Sponsor (indicate nonprofit, profit, cooperative etc. ) : Name or Number of Neighborhood CNFA Area Marks-Foran Area Other Area Number of Units : Occupied Vacant Number of Units Occupied by Very Low-Income (estimated Low-Income Moderate Estimated Cost of Rehabilitation $ Estimated Amount of SB 966 Loan $ Estimated Amount of Total Loans On the Property $ SOURCES & AMOUNTS $ $ Section 8 Available? YES NO Proposed Rent Limitation Arrangement? YES NO Use of Section 8? YES NO ADDITIONAL COMMENTS: SUMMARY OF EXISTING FINANCIAL ASSISTANCE FORM BMIR Deferred Refinancing Loans Loans Grants Funds Other Available In All Areas Where SB 966 Funds Are Yes Yes Yes Yes To Be Used? Yes or No Operational ? Yes Yes Yes Yes (Yes or No) i If Not Operational , Planned Date of Implementation j Maximum Loan/ $89000 $6,000 $1,500 $27,000 Grant Amount I n jOwners of Property owners Eligible v/ners single family in areas (owner/occupant homes and own�r rentals or both Funding Source(s) (i .e. CDBG, 312 , CDBG and CDBG CDBG etc. ) 312 312 i Total Rehab Loan/Grant Budget (July 1, 1979 - $800,000 June 30, 1980) COMMENTS: 9cl) REHABILITATION PROGRESS FORS, ' A. Loans/Grants Committed Total Program To Date Fy 78-79 Number Number 1 . Total BMIR Loans 15 Total Funds $ 83,280 5 $ 29,745 2. Total Deferred Loans 46 Total Funds $ 215,416 20 $ 106,630 3. Total Grants 34 Total Funds $ 119.696 4 $ 12,126 4. Other Total Funds $ $ TOTAL ALL LOANS/ TOTAL ALL GRANTS 95 FUNDS $ 418,392 29 $ 148.501 B. Units Rehabbed over 2 ,500/unit 1 . No. of Units Proposed for Rehabilitation: FY 77-78 50 FY 78-79 60 FY 79-80 2. No. of Units Rehabbed (completed) : FY 77-78 34 FY 78-79 29 3. No. of Units Rehabbed by Tenure: a. No. of Owner-Occupied: FY 77-78 34 FY 78-79 29 Proposed FY 79-80 150 b. No, of Rental Units: FY 77-78 FY 78-79 Proposed FY 79-80 4. Percent of Rehabilitation Proposed to Rehabilitation Completed? FY 77-78 68 FY 78-79 481%, Proposed FY 79-80 C. Households Benefiting From Re a i station Programs Proposed FY 77-78 FY 78-79 FY 79-80 1 . No. of Very Low Income (50% or less of Median) 28 20 70 2. No. of Low-Income (between 50% & 80% of Median) 6 9 80 3. No. of Moderate-Income (between 80% & 120% of Median) 4. Above 120% of Median TOTAL HOUSEHOLDS ASSISTED 34 29 150 D. Rent Limitation Proposed FY 77-78 FY 78-79 FY 79-80 1 . No. of Properties Where Section 8 Used: 2. No. of Units: 3. No. of Properties Where Rent Limitations Agreements Used Without Section 8 4. No. of Units: COMMENTS THAT WILL HELP EXPLAIN ANY OF THE ABOVE: .'Jse separate sheet of paper, if necessary * As of February, 1979 5a) Use of SB 966 Funds with Other Funds In fiscal year 1979-80 the County Building Inspection Department will have available an estimated $800,000 with which to provide rehabilitation financial assistance. The primary funding source is Community Development Block Grant funds. Other funds include Section 312 funds, and Farmers Home Administration 502 and 504 funds where appropriate. Further, for the County BMIR component, private funds from a financial institution are leveraged. 5b) Continuance of Present Rehabilitation Financing The expected use of SB 966 funds is to supplement the currently available funds. The funds would be primarily utilized to do rehabilitation work which cannot be done under current County policies because of limitations on maximum loan amounts. The. County has found that in many of the target areas the degree of deterioration, and due to inflation in the construction trades, there have been a number of applicants who could not be assisted, or could not have all desired repairs completed. The additional funds available through SB 966 funds could provide the incremental amounts necessary to assure that more households in need of rehabilitation can be assisted. 50 Ability to lend funds In January, 1979 an analysis of 50 rehabilitation cases was conducted. The study found that the amount of work to be conducted on 20 cases had to be reduced by an average amount of $3,709 to stay within the policies of the program. The total amount of the reductions was almost $75,000. the County expects demand for rehabilitation to increase; therefore, additional families could be expected to fall within the "requiring additional assistance" category. Within a one year period, given past history, the County does not feel it would be difficult to utilize a $100,000 allocation. 5d) Units and Households to Benefit With the additional SB 966 funds the County would expect to be able to assist approximately 30 households (assuming $3,500 per supplementary deferred loan). Because of the orientation .of the County program we would expect that each of the units would be occupied at the time of providing rehabilitation assistance. The income category of benefitting households would be predominantly very low and low income, with a few moderate-income households. An estimate of the breakdown is as follows: very low income 15 50 low income 10 33 moderate income 5 17 5e) Conformance with Housing Element and Housing Assistance Plan In 1970 the Contra Costa County Board of Supervisors adopted a Preliminary Housing Element. This element does not meet the requirements of recently promulgated State guidelines for the Housing Element. To adequately address the housing needs of the County, and to bring the Housing Element into compliance with State guidelines, the County has undertaken a comprehensive revision of the Housing Element. A citizens advisory committee in February, 1979 completed and recommended to the County Planning Commissions and the Board of Supervisors a. comprehensive Housing Element. The draft recommendation is scheduled for hearing before the Planning Commissions and the Board of Supervisors this spring and summer. The County expects to have an adopted Housing Element which complies.with the State guidelines prior to the mandated date of October 1, 1979. Below are relevant goal statements and policies from the draft Housing Element which indicate that the SB 966 funds would be useful in meeting stated objectives. HOUSING GOALS HOUSING CONSERVATION AND NEIGHBORHOOD PRESERVATION To upgrade substandard housing and prevent further neighborhood deterioration. - To preserve the quality and diversity of neighborhoods within Contra Costa County. - To maintain the existing housing supply within the financial means of Contra Costa households. POLICIES 1. To promote the conservation of the County housing stock the County will continue to undertake assisted housing conservation efforts. 2. The County will evaluate and pursue, where practical, other programs and financing mechanisms available to conserve the housing stock. 3. To maximize its neighborhood preservation efforts, the County will designate neighborhood preservation areas where housing and community development assis- tance will be concentrated to arrest decline and stabilize neighborhoods. With regard to the Housing Assistance Plan for the County the Fifth Year Annual Goal (attached) calls for the provision of assistance to 302 lower income households including 150 through CDBG funds. To the extent that the SB 966 funds will allow the County to more adequately meet the needs of its population, they will also allow the County to meet its HAP needs and goals. 50 Need for Funds See 5b above. 6) Information on Rental Housing Development Because the County rehabilitation program is oriented to owner occupants the, issues of displacement and rent increases are not expected to occur. 7) Schedule of Activities a) Application Acceptance and Processing ongoing ongoing b) 1st quarter fund commitments $302000 c) 2nd quarter fund commitments $30,000 d) 3rd quarter fund commitments $20,000 e) 4th quarter fund commitments $20,000 8) Personnel and Qualifications Leon L. McNeil - Building Inspector II Mr. McNeil has been involved in the Neighborhood Preservation Program since 1977. At that time the program consisted of grants in two target areas. As an Inspector, his duties include reviewing the dwellings and preparing the deficiency list of work to be done. This list is reviewed with the owner, and with their approval, the work is put out for bid. The Inspector monitors the work done by: the contractor and when work is completed, with his and the owner's approval, the contractor is paid. Currently, Mr. McNeil is the Program Coordinator. To date, the program consists of seven target areas. The program is no longer strictly grants, but a combination low-interest and no-interest loan and emergency grant program. His duties, in addition to those mentioned above, include attending community meetings on behalf of the program and handling complaints and inquiries of applicants. He also supervises work done by other inspectors in the program. Janet Haroutunian -.Administrative Services Assistant II Ms. Haroutunian has also been with the Neighborhood Preservation Program since 1977. As the program administrative person, her primary duties include the processing of the rehabilitation loan application and the determination of financial eligibility. She also reviews the Lot Book reports and prepares the applications for the Lending Institution. Other duties include monthly reporting on each of the seven target areas, a monthly budget report, and the preparation of the annual Program Budget. She also attends community meetings and offers referral information when possible. 1 �8 CONTRA COSTA COUNTY PLANNING DEPARTMENT TO: Al. G. Wingett DATE: April 4, 1979 County Administrator SUBJECT: Deferred Payment Rehabilita- FROM: Anthony A. Dehaes_ tion Loan-Fund Director of Plannin hi late 1978 the State Legi are passed SB 966 (Marks) which created a programof deferred payment loan funds to assist low and moderate income households in the rehabilitation of their housing. The State, through the Department of Housing and Community Development (HCD), will lend funds to local government agencies who, in turn, lend to eligible property owners: The loans are in the form of deferred loans with 3% interest on the original principal.-, Attachment A describes the program provisions. Local government agencies eligible to participate in this program are limited to California ]-lousing Finance Agency (CHFA)=Home Ownership Home Improvement (HOHI) program participants, Marks-Foran Residential Rehabilitation Program agencies, and certain local code enforcement agencies. The County qualifies for this program as a HOHI participant. The .Deferred Payment Rehabilitation Loan Fund is considered to be a supplementary source of rehabilitation financial assistance, i.e., it Should not be utilized to replace local housing rehabilitation funds. Loans made available from the Deferred Payment Loan fund would be utilized to cover the costs of rehabilitation which are in excess of what the County can currently provide. The two funding sources acting in tandem could result in the County having .the capabilities to assist more families in need of rehabilitation assistance. Administrative costs for the program cannot be paid out of the Deferred Payment Loan Fund. The federal community Development Block Granit funds allocated to the County Building Inspection Department would be utilized to cover administrative costs. Additional costs are expected to be minimal. Additional staff processing time of approximately one hour is estimated to prepare the necessary loan documents. Monitoring of the rehabilitation work is a current function of the program so no additional time would be required. The preparation of quarterly progress reports would require approximately four staff hours per quarter. The benefits of the additional rehabilitation funds, and the likelihood that families who might not otherwise be able to receive financial assistance can be assisted, seem to far outweigh the small incremental costs of administration. Approximately $2 million is available for this program. The State is soliciting Requests for Proposals from local agencies for use of these funds. The attachment summarizes the provisions of the program. I recommend that the Board authorize the submittal of a proposal for the use of the Deferred Payment Loan Funds. The Program is another source of funds by which the County can provide rehabilitation assistance to low and moderate income households. Please schedule this before .the Board of Supervisors on April 10, 1979 for their considera- tion. AAD:sj Attachment ATTACHMENT A INFORMATION ON THE HOUSING REHABILITATION LOAN FUND SB 966/Marks ) Deferred Payment Rehabilitation Loan Program The Housing Rehabilitation Loan Fund program was established by the passage of SB -966 (Marks) and execution by the Governor in September, 1978. The program provides- deferred payment- loan funds to local government to assist with the rehabilitation of housing for low- and moderate-income households . The program is administered by* the California Department of Housing and Community Develop- ment (HCD) through the assistance of local governments . The program will com- plement local rehabilitation in cities and counties. with certain eligible programs . I .' " How Program Works The Department of Housing and Community Development (K C)' will lend deferred loan funds to certain local government agencies and those agencies will in turn lend the funds out to eligible property owners in the form of deferred loans with 310 interest on the original principal . The loans will be repaid to local government, and in turn to the State. Additionally, SB 966 provides that some local code enforcement agencies might borrow funds from the State when the agencies are having repairs done to properties where owners have not repaired after a final notice. Liens would be placed against such properties, and when local agencies are repaid, they would repay the State. II . Eligible Local Agencies and Programs Local agencies eligible to apply for State funds are cities , counties , or . cities and counties , and includes any government agency or local public entity to which such eligible local agency may, after a public hearing, delegate responsibility for the program. Eligible Programs Only local agencies with one or more of the following programs are eligible for loan funds from HCD: A. A rehabilitation loan program conducted in CHFA Concentrated Rehabili- tation Areas designated pursuant to Section 51302 of the Health and Safety Code. The local agency shall have available and commit to the extent possible, CHFA rehabilitation and refinancing funds , CDBG BMIR loans, HUD 312 loans, Title I loans , and other funding to be used in. combination with funds from the Fund in designated areas . Page:2 • • B. A residential rehabilitation financing program conducted pursuant to the Marks/Foran Residential Rehabilitation Program, commencing with Section 37910 of the Health and Safety Code. The local agency shall have available and commit to the extent possible, Marks/Foran rehabili- tation and refinancing funds, CDBG BMIR loans, HUD 312 loans, Title 'l loans, and other funds to be used in combination with funds from the Fund in the designated areas . C. A. city-wide or county-wide systematic enforcement program pursuant to which the CHFA has allocated funds for rehabilitation of housing pursuant to Section 51311 of the Health and Safety. Code. D. A code enforcement agency repairing substandard structures following the owner's failure to commence work following a final notice or order from the enforcement agency. III . Eligible Property Owners/Borrowers Detailed eligibility criteria for property owners are included in the program regulations which are available to agencies planning to submit proposals. Generally, low/moderate-income own.e.r-occupants of one-to-four unit properties and non-owner-occupants of rental properties, subject to certain requirements, are eligible for loans ._ IV. Available Funding and Loan Limits. (A) Amounts of Loans to Local Aaencies Not less than 7500 of the $2 million in the Housing Rehabilitation Loan Fund has been earmarked by HCD for Marks/Foran and CHFA CRA programs. Not more than 1090 is for code enforcement eligibility categories . A maximum amount of to $950,000 may be made available under this Request for Proposals for this fiscal year ending June 30, 1979. Up to $900,000 may be available during fiscal year 1979-1980. If sufficient proposals are received under the initial RFP deadline of April 12, 1979, the proposals may be used to commit funds for both fiscal years . A local jurisdiction with a Marks/Foran or CHFA CRA program could receive a loan commitment of up to $400,000. However, since the total funds are limited it is expected that most initial loan commitments will riot exceed 5100,000 to $200,000. (3 ) Amounts of Loans to Property Owner/Borrowers The maximum loans would be 510,000 per unit, or $20,000 per unit when there are room additions to alleviate overcrowding. The maximum loan for a rental property would be $100,000. Paye.3 • • V. Terms and Conditions of Loans to Local Agencies Details on the terms and: conditions are set forth in the regulations which can be obtained by local agencies making proposals . In general , the terms and conditions are: (A) Local Agencies in Categories A through C ( Item II above) o 3% interest per annum on loan amount disbursed to local agencies. o Loans repayable to State upon repayment by property. owners . o Local agencies must require agreements from owners of rental properties on renting to low-income renters and limiting rent increases . (a) Local Code Enrorcement Agencies .Category D ( Item II above) o Loans to local agencies bear no interest except when the agency- collects gencycollects interest from the property owner. - o Loans repaid to State upon collection by local agency. o Liens placed against properties until repayment to owners . V.I . Terms and Conditions .of Loans to Property Owners Details on terms and conditions are in the program regulations. (A), Owner-Occupied I - 4 Units 1. Elderly Owners o Loan is necessary to cover cost of meeting rehabilitation standards over the amount of the improvement loan the local agency is able to provide without exceeding the owner's ability to afford the monthly payments required. 0 3% interest per annum on original principal loan amount., o Loans repaid upon sale or transfer. o. Lien on property. 2. Non-Elderly Owners o Loan is necessary to cover cost of meeting rehabilitation standards over the amount of the improvement loan the local agency is able to provide without exceeding the owner's ability to afford the monthly payments required. o 396 interest per annum on original loan amount. - Rage..4 • o Loans repaid at the end of 5 years, or upon sale or transfer, whichever occurs first. o Loans maybe extended for an additional 5-year period if owner is unable to refinance loan- at the end of 5 years . (B) Owners of Rental Properties o 3% interest per annun on original principal loan amount. o Loans repaid at the end of 5 years , or upon sale or transfer, whichever occurs first. Loans may be extended if low-income tenants continue to benefit. o Loans must be necessary to (1) avoid increases in monthly debt service which would result in rent increases causing permanent displacement of persons of low income; or (2) avoid increases in monthly .debt service that would make it economically infeasible to accept subsidies available to provide affordable rents to low-income tenants . o Owners must agree to rent to certain amount of low-income tenants. during the term of the loan. VII . Priorities in Use of Funds The relative merit of all applications from local agencies will be judged by the following criteria: (A) The local agency' s agreement to combine loans from the Fund with other rehabilitation and refinancing funds and resources to ensure maximum leverage of loans from the Fund. (B) The local agency's agreement to commit, to the maximum extent possible, CHFA, Marks/Foran, HUD 312, CDBG,. Title I , or other funds for refinancing and rehabilitation. (C) The local agency' s agreement to continue existing rehabilitation and refinancing programs . (D). The local agency's ability to proceed to lend out the loan funds upon receipt of funds. (E) The estimated number of units and loci and moderate households to be assisted by the loan, considering the amount of the loan . (F) Conformance with and furtherance of the local Housing Element and Housing Assistance Plans . Page 5 (G) Evidence of need for loan funds from the Fund. Other criteria may be adopted by the Loan Committee as deemed appropriate. VIII . Approval/Disapproval of Local .Agency Applications �f'. A Loan Committee composed of three Department officials and two public representatives will approve or disapprove all applications from local agencies for funds . IX. Local Agency Requests for Funds The Department shall initially, and periodically thereafter, advertise the availability of funds and accept applications from local agencies . Questions about the availability of funds can be addressed. to the Administrator, Deferred-Payment Rehabilitation Loan Program, Department of Housing and Community Development, 921 Tenth Street, Sacramento, CA 95814 (916) 445-0836.