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HomeMy WebLinkAboutMINUTES - 06261984 - 1.47 r • TCS: BOARD OF SUPERVISORS Contra FROM: Anthony A. Dehaesus Director of Planning Costa DATE: lune 19, 1984 -49County SUBJECT: Submittal of an Application to the U.S. Department of Housing and Urban Development for Rental Housing Rehabilitation Funds SPECIFIC REQUEST(S) OR RECOMMENDATION(S) $ BACKGROUND AND JUSTIFICATION RECOMMENDATION 1) Authorize the submittal of an application and program description to the U.S. Department of Housing and Urban Development for $168,200 in order to implement a Rental Rehabilitation Program enacted into law as Section 301 of the Housing and Urban-Rural Recovery Act of 1983; 2) Assure and certify that the County will comply with the regulations, policies, guidelines and requirements with respect to the acceptance and use of federal funds for this federally assisted program and given assurances and certify compliance with the list of certifications as provided in the application; and 3) Authorize the Chairman to execute the required Application and Program Description. BACKGROUND In November, 1983 the Housing and Urban-Rural Recovery Act of 1983 was enacted. Among other things the law authorized a Rental Rehabilitation Program. A total of $150 million will be available nationally. Funds are allocated to localities on a formula basis - Contra Costa County's formula allocation is $168,200. In addition, the County would receive approximately one additional Section 8 Certificate or Housing Voucher for each $5,000 in program funds. A separate application for these certificates/vouchers will be forwarded to the Board in the near future by the Housing Authority. The program area is the County's Community Development Block Grant entitlement area, i.e., the entire County except the cities of Richmond, Concord, Walnut Creek, and Pittsburg. The Housing Authority, under contract to the County, Planning Department would be the im- plementing agency. Administrative costs incurred by the Housing Authority cannot be paid by these Rental Rehabilitation Program funds, but can and would be paid for with Community Development Block Grant funds previously allocated to the Housing Authority for rental rehabilitation purposes. A brief description of the Rental Rehabilitation Program is attached for your review. The securement of funds under this program will allow the County to further its housing rehabilita- tion strategy and address the needs for improving the housing stock of the County, particularly the needs of its lower income renters. CONTINUED ON ATTACHMENT: YES SIGNATURIq RECOMMENDATION OF COUNTY ADMINISTRATOR C MM NDATI" O OARD COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER I VOTE OF SUPERVISORS I UNANIMOUS (ABSENT ) . 1�, 1 HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. CC: Housing AL1thoTity ATTESTED /_ [J U.S. Dept Of HUD J. OLSSON, COU CLERK Coinity Administrator AND EX OFFICIO CLERK OF THE BOARD 00 - 00 M3e217-83 IG BY / DEPUTY FEBRUARY 1, 1984 PO-TrAL R11LUILITATION PPJM M . SUMMU The Rental Rehabilitation Program was .enacted on November 30, 1983. The Program is designed to assure an adequate supply of standard housing affordable to lacer-inecrre tenants. It (1) increases the supply of private market rent housing available to lower-incare tenants by providing government funds to rehabilitate existing units and (2) provides rental assistance to lower-income persons to help them afford the rent of these units. Within the basic framework of the Program, State and local governments have the flexibility to design and operate programs unique to their needs. In each of Fiscal Years 1984 and 1985 $150 million will be available for rehabilitation grants and 30,000 Section 8 Existing Certificates and vouchers will be available to tenants. The Program provides a formula allocation of grant funds to State and local governments to make the rehabilitation of rental properties feasible. One Section 8 Certificate and/or voucher is provided for each $5,000 of grant funds to. help eligible lower-income tenants to pay the rent for rehabilitation units. Direct allocations go to States, and to cities with ocoulations over 50,000 arc] urban counties that will receive at least a minimum allocation amount established by HUD. State programs will cover areas under 50,000 in population (except for F'mRk Title V areas which are ca✓ered under the Rural Housing Preservation Grant Program) and cities over 50,000 in population which do not receive the minimum allocation. FEY. EL. i_ENM OF THE PROGRNM ® Eligible Activities: Program grant fur-Os may be used only to finance the rehabilitation of privately-owned, primarily residential rental properties. In order to leverage the maximum amount of private capital, rehabilitation subsidies are generally limited to 50 percent of the cost of rehabilitation, not to exceed $5,000 per unit adjusted for high cost areas. ® Lower-Incore Benefit: In order to assure maximu.-n benefit to lower-income tenants in this Program, 70 to 100 percent of the units in rehabilitated properties in each participant's program must be initially occupied by lower-income tenants. In addition, grantees must target all of the assistance to lower-income neighborhoods (median income at ro .below 80 percent of m�3ian for area) where the rents can be•expected to remain affordable to lower-income families over time. • • 2 V Eligible Rehabilitation: Grant funds may only be used to correct substandard conditions, make essential inprovements, and repair major systems in danger of failure. ® Market Rents: Units will be rented at market rents and no special project rent controls or restrictions are allowed. ® Rental Subsidies: Section 8 Certificates and vouchers may be used to assist eligible tenants residing in units to be rehabilitated who wish to remain or move, and for tenants who move into vacant units.