HomeMy WebLinkAboutMINUTES - 03091993 - 1.32 t
- .. 1 -32
Contra
TO: BOARD OF SUPERVISORSa ir, COSta
q m46 County
V
FROM: Harvey E. Bragdon
Director of Community Development
DATE: March 9 , 1993
SUBJECT: Contra Costa County FY 1993 HOME Program Description
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Approve and authorize the Director of Community Development or his
designee to: ( 1) submit Contra Costa County' s FY 1993 HOME Investment
Partnerships Act (HOME) Program Description and required
certifications to the U.S. Department of Housing and Urban Development
(HUD) ; and (2) enter into a HOME Investment Partnerships Act Agreement
with HUD for the FY 1993 Program.
FISCAL IMPACT
Source of funds : Federal HOME Investment Partnerships Program. , No
General Funds are involved.
BACKGROUND/REASONS FOR RECOMMENDATIONS
On behalf of the Urban County, Contra Costa County has been designated
as a Participating Jurisdiction for purposes of the HO E Investme
CONTINUED ON ATTACHMENT: YES SIGNATURE:
J
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATIn1j, OF BOAA COMMITTE
APPROVE OTHER
I
SIGNATURE(S) :
ACTION OF BOARD ON APPROVED AS RECOMMENDED Y, OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Kathleen Hamm
646-4208 ATTESTED
cc: County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR
Community Development BY �/ , DEPUTY
L
Partnerships Act Program funded through HUD. The Urban County
includes all of Contra Costa with the exception of Antioch,
Concord, Richmond, and Walnut Creek. The purpose of the HOME
Program is to expand the supply of decent, safe, and affordable
housing for very-low and low-income households through the
provision of federal funds for the acquisition, new construction,
and rehabilitation of rental and owner-occupied housing.
HOME funds are allocated by formula to eligible Participating
Jurisdictions . The FY 1993 formula allocation for the Urban County
of Contra Costa is $1,054,000. In order to receive HOME funds, the
County must prepare a Program Description describing , how these
funds will be used to expand affordable housing opportunities . The
Program Description and required certifications must be submitted
to HUD for approval by March 15, 1993 .
The Community Development Department has prepared the FY 1993
Contra Costa HOME Program Description for the Urban County.
Housing priorities and strategies proposed in this document are
fully consistent with the County' s General Plan Housing Element and
Comprehensive Housing Affordability Strategy. As proposed, program
priorities for the allocation of FY 1993 HOME funds are:
1 . the acquisition, rehabilitation, and new construction of
additional multifamily rental housing affordable to very-low
and low-income households;
2 . homeowner rehabilitation program for very-low and low-income
households; and
3 . first-time homebuyer' s program to assist very-low and low-
income households in obtaining affordable housing.
Following approval of the HOME Program Description by the Board of
Supervisors and HUD, a HOME Investment Partnership Agreement must
be executed between Contra Costa County and HUD. At this point,
the County may proceed with the allocation of FY 1993 HOME funds
through a competitive application process .
Re: ►. 32
U.S.Department of Housing and Urban Development
r Njr Sen Francisco Regional Office,Region IX
450 Golden Gate Avenue
I San Francisco,California 94102-3448
FEB 12 1993
"- RECEIVED
Mr. Tom Torlakson
Chairperson, Board of Supervisors ffg 1810
County of Contra Costa
651 Pine Street CLERK BOARD OF SUPERVISORS
Martinez, CA 94553 CONTRA COSTA CO.
Dear Mr. Torlakson:
SUBJECT: Home Investment Partnership Program (HOME)
Notice of Fund Availability
Fiscal Year 1993 Funds
HUD Secretary Henry Cisneros has spoken of the role
HOME can play in improving our economy. Congress has
appropriated $2.5 billion for HOME for fiscal years 1992 and
1993 . Very little of that has been committed. Much more
can be achieved if our political leaders and their chief
administrative officers give this important program some
personal attention. ,
The Notice of Funding Availability for the HOME program
for Fiscal Year 1993, published in the Federal Register on
January 27 , 1993, identifies an allocation for your
community of $1,054,000.
An original and two copies of the Program Description
(application) for the HOME program must be submitted no
lacer than ."•larch 15, 1993 . Information and specific
instructions concerning the application are being provided
to your staff under separate cover.
I urge you to discuss with your staff the progress of
your community's HOME program. This year's allocation, when
added to last year's grant, can make a significant
contribution to the supply and quality of your affordable
housing stock. In addition, HOME funds create employment
opportunities in the construction and related industries
which have been particularly hard hit in recent months.
. 60CW8 Mem
CAO
2
There have been a number of problems in getting this
new program off the ground. Some of those problems have
been corrected by amendments to the authorizing legislation;
others are being corrected by changes to the regulations. A
review of the program is currently underway to identify
additional changes to help HOME participating jurisdictions
accelerate the program. If, after discussions with your
staff, you have suggestions for further changes, please call
me personally at (415) 556-5576, or call a member of our
rehabilitation staff at (415) 556-3317 . HOME can be a boost
to our economy, in addition to expanding and improving our
housing stock. Your personal attention to this matter will
be appreciated.
Very sincerely yours,
Gordon H. McKay, Dir ctor
Office of Community Planning
and Development
cc: Mr. Phillip Batchelor
County Administrator
--1 Community Contra • Harvey E. Bragdon
Director of Community Development
Development , Costa , 3 D,
Department I I
County Administration Building County v-1
1
651 Pine Street
4th Floor, North Win
Martinez, California 94553-0095 ,...
Phone: ( 510) 646-2026 `x-
MA
March 12 1993 - '
� '�'. �.�RtC BOAtiD OF S'JPcRi/ISORS'
Cn,��TRA COSI/`.CO__:J_..
Gordon H. McKay, Director
Office of Community Planning
and Development, HUD
San Francisco Regional Ofc. , Region IX
450 Golden Gate Avenue
San Francisco, CA 94102-3448
Dear Mr. McKay,
SUBJECT: Contra Costa County FY 1993 HOME Program Description
M93-UC060203
It is my pleasure to submit to you Contra Costa County' s FY 1993
HOME Program Description for the Urban County (enclosed) . The
Program Description was approved by the Board of Supervisors on
March 9 , 1993 .
We look forward to working with the Department of Housing and Urban
Development in continuing to implement the HOME Program to improve
the availability of affordable housing opportunities in Contra
Costa. If you or your staff require any additional information
concerning the Program Description or the County' s participation in
this program, please do not hesitate to call Kathleen Hamm, Senior
Housing Planner (510/646-2035) .
Singa rely,
Jimk Kennedy' L'
Dep ty Dire -tor - Redev opment
1
Enclosures I
i
cc: Board Members v
County Administrator
Jim Kennedy
Kathleen Hamm
File D1 . 10 (b) ( 1)
kh/k5/McKayl
urns�pprotral no.uses-txi+y
APPLICATION FOR xDATE sutlramo
FEDERAL ASSISTANCE 9 - 11 Applicant
Identifier
TC060203
-� 12 .3 -- - -
1. TYPE Of SU•MISS1OW. 3.DATE RECEIVED(1IY STATE State Application Identifier
A plication ;. Preapplicatlon
] Construction Construction
4.DATE RECEMID QX FEDERAL,AGENCY Federal Identifier
�] Non-Construction ❑ Non-Construction
s APPLICANT INFORMATION
Lbgal Name. Organizational Unit:
Contra Costa County CaTmnity Develor>mment Department
Ad"ress(g.ve cult. county. state. and rip code): Name and telephone number of the person to be contacted on matters involving
651 Pine Street this application (give area code)
4th Floor, N. Wing Kathleen K. Farm
Martinez, CA 94553 (510) 646-4208
S. EMPLOYER IDENTIFICATION NUMBER IE1N): 7. TYPE OF APPLICANT:(enter appropriate letraw in box)
9 4 — 6 10 10 1 0 15 0 9 A. stale H.Independent School Dist.
B. County L State Controlled Institution of Higher Learning
L TYPE OF APPLICATION: C. Municipal I Private University
O. Township K Indian Tribe
�] New Continuation ❑ Revision E Interstate L. tndividual
F. Intermunicipal M. Profit Organization
It Revision. enter appropriate letter(s)in box(es): ❑ ❑ G.Special District K Other(Specify):
A Increase Award B.Decrease Award Q Increase Duration
0 Decrease Duration Other(specify). L NAME OF FEDi1AL AOEN0E-
.S Dept. of Housing and Urban Development
10. CATALOG
OF FEDERAL NUMBER DOMESTIC 1 4 • 2 3 11. DESCRIPTIVE TITLE OF APPLICANT'S PROJECT.
See attached HUM Program Description
TITLE: for Contra Costa (Urban County)
14,01,E Investment Partnership Program
12. AREAS AFFECTED BY PROJECT(cities. counties. states.etc.).-
Contra
tc.):Contra Costa Urban County
ts. PROPOSED PROJECT: 14. CONGRESSIONAL DISTRICTS OF:
Start Oats Ending Date a.Applin :b. Project
Rep. George Ii-Tiller, 7th District Same as 14.a
May 1993 :fay 1998 Rep. Fan T)elluu,s, ^t?,. 'District
15. ESTIMATED FUNDING: le.IS APPLICATION SUBJECT TO FILMEW BY STATE EXECUTIVE ORDER 12372 PROCESS?
a Federal
—71,054,000
.00 A YES. THIS PREAPPLICATIOWAPPLICATION WAS MADE AVAILABLE TO THE
1 054 000 STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON:
b. Applicant i •00 GATE
C State S .00
b NO. ® PROGRAM 18 NOT COVERED BY E.O. 12372
d Local (See s .00
262,500 ❑ OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW
e 01ner S .00
I P-Nram income S .00 17. 13 THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT?
❑
q TOTAL .00
Yes It-Yesex
-attach an planation. No
f
1,316,500
18. TO THE BEST OF MY KNOWLEDGE AND BELIEF.ALL DATA IN THIS APPLICATION,PREAPPLICATION ARE TRUE AND CORRECT,THE DOCUMENT HAS BEEN DULY
AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WIT"THE ATTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED
a Typed Name of Authorized Representative b. Tette c.Telephone number
Jim Kermedy Deputy Director - Redevelopmen (51 )646-4076
d S-gnature of Authorized Representative
e Date Signed
pre.-ous E: tions• of Usab! Standard Form 424 r 1.88)
Prexntred by OMB t:rrcwar A•102
/Authorized for Local Reproduction
CONTRA COSTA COUNTY
FY 1993 HOME PROGRAM DESCRIPTION
INTRODUCTION AND PROGRAM PURPOSE
Title II of the Cranston-Gonzalez National Affordable Housing Act
created the HOME Investment Partnership Program (HOME) for purposes
of maintaining and expanding the supply of decent, safe, sanitary,
and affordable housing. HOME Program funds are distributed by
formula to Participating Jurisdictions through the U.S. Department
of Housing and Urban Development (HUD) for the following
activities : acquisition, rehabilitation, and new construction of
rental housing; homeowner rehabilitation; first-time homebuyer
assistance; and tenant-based rental assistance.
Contra Costa County has been designated as the Participating
Jurisdiction for the Urban County. The Urban County includes the
unincorporated area of Contra Costa plus the following cities :
Brentwood; Clayton; Danville; E1 Cerrito; Hercules; Lafayette;
Martinez; Moraga; Orinda; Pinole; Pittsburg; Pleasant Hill; San
Pablo; and San Ramon. Contra Costa County's HOME Program is
implemented through the Community Development Department. During
FY 1993, the County will receive $1,054,000 in HOME funds for use
in supporting affordable housing projects in the Urban County.
On March 9 , 1993, the Board of Supervisors approved Contra Costa' s
FY 1993 HOME Program Description for the Urban County. In
accordance with federal requirements, this document contains :
o a summary of the County's affordable housing goals and
strategies;
o the role of the HOME Program in implementing these strategies
within the Urban County;
o a description of eligible HOME Program activities and County
priorities;
o a discussion of the process employed in allocating HOME
Program funds;
o an estimated allocation of FY 1993 funds;
o a statement of the County's affirmative marketing policies and
procedures; and
o a description of the County' s Minority and Women-Owned
Business Outreach Program.
In order to be considered for HOME funds in the Urban County, a
2
0
project must be consistent with the County' s Comprehensive Housing
Affordability Strategy (CHAS) and approved HOME Program
Description.
AFFORDABLE HOUSING GOALS AND STRATEGY
Affordable housing goals for the Urban County are contained in
Contra Costa County: Comprehensive Housing Affordability Strategy
for the Urban County FY 1992-1996'. The County' s goals are fully
consistent with the purposes of the HOME Program and include the
following:
o To make decent, safe, and affordable housing available to
current and future residents of Contra Costa and the Urban
County without regard to age, sex, family status, race, creed,
national origin, or physical, mental or developmental
disabilities .
o To improve the jobs-housing balance by encouraging the
development of a variety of housing types in reasonable
proximity to employment centers and accessible to all
demographic and economic segments of the population.
o To conserve and improve the quality and diversity of existing
neighborhoods and the available housing stock.
The County' s efforts to achieve these housing goals include
policies and strategies which are designed to maintain existing
rental and owner-occupied housing, as well as encourage and
facilitate the development of additional housing affordable to and
occupied by very-low, low, and moderate income households . The
County' s strategies together with potential funding sources and a
one-year implementation plan are discussed in detail in the Contra
Costa County FY 1993 CHAS Annual Plan. The role of the HOME
Program in implementing the County' s affordable housing strategy is
described in the following.
FY 1993 HOME PROGRAM
During FY 1993, Contra Costa County will receive $1, 054 ,000 in HOME
funds to support the maintenance and development of rental and
owner-occupied housing affordable to and occupied by very-low and
low income householdS2 in the Urban County. Within the context of
1Copies of the County's CHAS may be obtained from the Community Development
Department.
2Very-low income households are defined as those whose incomes are 50% or
less of Area Median Income (AMI) , adjusted by household size as published by HUD
for the Oakland PMSA. Low-income households are those whose incomes are 51% to
3
its overall housing strategy and as stated in the CHAS, the County
has adopted the following priorities for- the allocation of FY 1993
HOME funds :
o Acquisition, rehabilitation, and construction of affordable
multifamily rental housing.
o Housing rehabilitation loans for very-low and low-income
households .
o First-time homebuyers ' program to assist very-low and low-
income households in obtaining affordable housing.
Multifamily Rental Housing
In accordance with County priorities and federal regulations, FY
1993 HOME funds may be used for the acquisition, rehabilitation,
and new construction of nonluxury, multifamily rental housing in
the Urban County. All rental units assisted with HOME funds must
be occupied by very-low and low-income households whose incomes are
less than or equal to 80 percent of AMI . In addition:
1 . a minimum of 20 percent of all HOME-assisted units must be
occupied by very-low income households whose incomes are less
than or equal to 50 percent of AMI; and
2 . a minimum of 90 percent of all HOME-assisted units must be
occupied by households whose incomes are less than or equal to
60 percent of AMI3.
HOME-assisted units must also be affordable to the target
population. Specific rent restrictions include the following:
1 . HOME-assisted units for very-low income households (minimum of
20 percent) must have rents' which do not exceed 30 percent
of the adjusted gross income of a household whose income is 50
percent of AMI;
2 . HOME-assisted units for households with incomes from 51 to 60
percent of AMI must have rents which do not exceed 30 percent
of the adjusted gross income of a household whose income is 60
percent of AMI; and
3 . all other assisted units must have rents which do not exceed
80% of AMI.
3Including the 20 percent or more of units occupied by very-low income
households.
'Including a utility allowance.
4
30 percent of the adjusted gross income of a household whose
income is 65 percent of AMI .
In addition to occupancy and rent restrictions, projects assisted
with HOME funds must remain affordable to the target population for
specified time periods . Minimum required terms of affordability
depend on the average per-unit HOME assistance provided. Projects
receiving $15, 000 or less in HOME funds per assisted unit will be
required to remain affordable for a minimum of 10 years; projects
receiving from $15, 000 to $40,000 per assisted unit must remain
affordable for a minimum of 20 years; and projects receiving more
than $40, 000 per assisted unit must be affordable for a minimum of
30 years . All new construction projects will be required to remain
affordable for a minimum of 30 years . The County will give
preference to projects which propose longer terms of affordability.
In general, HOME funds for multifamily rental projects will be
provided as a loan, with specific loan terms dependent on the
economic feasibility and financial requirements of the project.
Loans may be amortized or deferred, with subsidized or zero
interest rates . Affordability requirements and terms will be
recorded as deed restrictions on assisted properties .
While the County has not imposed any maximums on the per-unit value
of HOME-assisted rental units, the County' s priority is on the
provision of decent, safe, sanitary, non-luxury housing affordable
to the target population. All HOME-assisted units must meet
federal housing quality standards and County building code
requirements .
Owner-Occupied Housing Rehabilitation
The County will also consider the use of HOME funds for housing
rehabilitation programs and projects designed to maintain the
supply of decent, safe, and sanitary housing for low-income
homeowners . Funds may be used to support programs which provide
zero and low interest loans to very-low and low-income households
throughout the Urban County. Alternatively, funds may be targeted
to specific low-income neighborhoods with a high concentration of
rehabilitation needs in order to revitalize the area and arrest a
situation of continuing decline.
All households assisted with HOME funds must be very-low or low-
income, and must agree to occupy the unit as their principle place
of residence throughout the term of the loan. Federal regulations
also restrict the after-rehabilitation appraised value of assisted
units to the current FHA 203(b) mortgage limit, or $151,725 for
Contra Costa County. Due to the relatively high value of owner-
occupied housing in Contra Costa, it is the County' s view that this
restriction will severely limit the use of HOME funds to assist
very-low and low-income homeowners, particularly large families and
seniors who no longer have the resources required to maintain their
5
current residence. According to the 1990 Census, the median value
of owner-occupied housing was $217 , 100 countywide, with more than
three-fourths of all housing units valued at more than $150,000 .
More recent data on residential sales indicate a median value of
$226 ,500 for units located in the Urban County and sold during the
second quarter of 1992 . Therefore, the County intends to apply to
HUD as soon as possible for a waiver of this restriction in order
to increase the feasibility of this program in the Urban County.
Eligible rehabilitation activities which may be supported by a HOME
loan include:
1 . repairs and essential (non-luxury) improvements required
to meet local building codes and bring the unit into
conformance with federal Section 8 Housing Quality
Standards;
2 . energy-related improvements;
3 . abatement of lead-based paint hazards;
4 . improvements required to provide accessibility for
disabled households; and
5 . repair or replacement of major housing systems .
It is the County' s intent that HOME Program rehabilitation loans be
limited to households who are unable to qualify for the required
loan amount from private lending institutions . Specific loan terms
may vary with the financial needs of individual households . All
loans must be repaid upon sale or transfer of the property.
First-time Homebuyer' s Program
The County has also established a priority for the use of HOME
funds to increase homeownership opportunities for very-low and low-
income households in the Urban County. Programs and projects which
will be considered for funding under this component of the HOME
Program include:
o first-time homebuyer assistance in connection with new housing
developments to ensure that a portion of the units will be
affordable to and occupied by low-income households; and
o projects designed to increase neighborhood stability and
improve the quality of housing through an increased incidence
of homeownership in an identified target area.
In the latter case, the total financing package for the project may
include funds for rehabilitation as well as acquisition of the
residence.
6
All households receiving assistance under this component of the
HOME Program must be first-time homebuyers5 with household incomes
at/below 80 percent of area median income. All assisted households
must agree to occupy the acquired unit as their principle place of
residence throughout the loan period; no temporary subleases will
be permitted. In addition, federal regulations require that the
appraised value of units acquired with HOME funds must not exceed
the current FHA 203 (b) mortgage limit, or $151, 725 for Contra Costa
County. Due to the relatively high value of single family housing
in Contra Costa6, it is the County' s view that this restriction
will severely limit the use of HOME funds to assist low-income
first-time homebuyers . Therefore, the County intends to apply to
HUD as soon as possible for a waiver of this restriction in order
to increase the feasibility of this program in the Urban County.
The County will provide first-time homebuyer assistance in the form
of a deferred second mortgage designed to fill the gap between the
purchase price of the home and the amount the buyer can afford
based on household income. Specifically, the amount of the HOME
second loan will equal the purchase price of the unit minus the sum
of the first mortgage, the homeowner' s downpayment7, and any other
sources of available subsidy. In this way, the County will provide
just enough subsidy to make the home affordable to the low-income
buyer. All HOME loans will be secured by a promissory note and
deed of trust specifying affordability and resale requirements .
The County will consider applications for first-time homebuyer
programs and projects which are consistent with the above
requirements and employ one of the following approaches :
1 . a shared equity loan program designed to recapture the
HOME subsidy upon sale or transfer of the property; or
2 . a silent second loan program with resale restrictions to
ensure acquisition of the unit by another qualified
homebuyer.
Both programs must fully comply with the previously described
County requirements and all applicable HOME Program regulations (24
5The following types of households may also qualify for assistance even if
they are not first-time homebuyers: a single parent with custody of one or more
minor children; a displaced homemaker; the owner of a home which does not meet
local codes and cannot be brought into compliance for less than the cost of new
construction; or the owner of a manufactured home which is not affixed to a
permanent foundation.
6See previous discussion under owner-occupied housing rehabilitation.
Homebuyers will be required to provide a minimum downpayment of 5 percent.
Higher downpayments will be encouraged. Downpayment may be in the form of sweat
equity or grants or gifts from other sources.
7
CFR Part 92 . 254 ) concerning resale requirements .
These two approaches are described in more detail in the following.
Shared Equity Loan Program. Under this approach, HOME funds may be
used to provide silent second loans to qualified low-income first-
time homebuyers . HOME loans may be for up to 30 years . Upon
resale, the homebuyer must repay the County the amount of the
second plus a share in the appreciation of the unit. Unit
appreciation is defined as the difference between the original
acquisition price and the resale price. The County' s share of the
appreciation or "equity share" will equal the amount of the HOME
second loan divided by the original acquisition price. All
remaining appreciation accrues to the seller.
For example, assume a first-time homebuyer acquires a home priced
at $100,000 with the following financing:
homeowner downpayment of $5,000;
first mortgage of $75,000; and
HOME silent second in the amount of $20,000 .
The County' s equity share upon resale is equal to 20 percent of the
appreciation in the unit ($20, 000 divided by $100, 000) . Assume the
owner sells the unit in five years for $110,000, resulting in a
total appreciation in value of $10,000 . Upon resale, the owner
must repay the HOME loan ($20, 000) and must pay the County 20
percent of the appreciation realized on the unit ( $2 , 000) . After
paying off the first mortgage, the owner receives the value of his
original investment (downpayment plus principle paydown) and all
remaining appreciation ( $8,000 in the example) .8 In no case will
the original buyer receive less than the amount of his investment
in a resale situation. In the event that the unit does not
appreciate, the County will receive only the amount of the silent
second ($20, 000) upon resale. If the unit depreciates in value and
the homeowner has adequately maintained the unit, the County will
consider reducing the silent second loan repayment in order to
ensure that the owner receives the full amount of his investment.
All first-time homebuyer loans repaid within the following time
periods will be used to provide additional first-time homebuyer
assistance through the County' s HOME Program: 20 years for loans
made to acquire newly constructed units; and 15 years for loans
made to acquire resale units . Loans repaid following these time
periods will be deposited as program income in the County' s HOME
Program Trust account and will be available for all HOME-eligible
activities .
8If a first-time homebuyer undertakes significant capital improvements on
a unit acquired with HOME funds, appreciation upon resale will equal the resale
price minus the original acquisition price minus the value of the improvements.
8
Silent Second Loan Program with Resale Restrictions . Under this
approach, HOME funds may be used to provide silent seconds to low-
income first-time homebuyers who meet all the requirements
previously specified. Depending on financial need and the specific
objectives of the program or project, loans may be zero or low-
interest with a term of up to 30 years . In addition, units
purchased with assistance through this program component must be
maintained as a part of the Urban County's affordable housing stock
for the following minimum time periods : 20 years for newly
constructed units; 15 years for existing units . Affordability will
be maintained through the following resale restrictions which must
be incorporated into the loan documents securing the HOME funds :
1 . County retains right of first refusal to acquire unit in
resale situation.
2 . Sales price to equal the lesser of the current appraised value
or the original acquisition price (plus the value of any
capital improvements) times the change in area median income
which has occurred during the period of ownership. This
approach maintains the integrity of the household' s original
investment in the unit and represents a fair return.
3 . Upon sale to a qualified household, the first buyer must repay
the amount of the silent second plus accrued interest, if any.
The County will consider first-time homebuyer programs which
forgive the interest after expiration of the minimum required
period of affordability (e.g. , 20 years for new construction) .
In a resale situation, the County will work with homeowners to
identify HOME-eligible purchasers to acquire the assisted units .
It is the County' s intention to develop and maintain a list of
prequalified low-income households interested in purchasing HOME-
assisted units at an affordable price. While the County will not
require the second purchaser to be a first-time homebuyer, priority
will be assigned to low-income households in this category.
During the period of required affordability, the unit will be
maintained as affordable to households earning 75 percent of area
median income9. In order to ensure continued affordability, the
County will either roll the silent second issued to the first buyer
over to the new purchaser, or issue a new silent second with the
same terms and conditions . If additional HOME funds are required
to maintain affordability, the second buyer will be required to be
a first-time homebuyer and a new period of affordability will be initiated.
9Payment of principle, interest, taxes and insurance (PITI) will not exceed
30 percent of the gross monthly income of a household earning 75 percent of AMI
with the following exception. PITI equal to 30 percent of actual gross monthly
income for HOME-eligible households earning from 75 to 80 percent of AMI will be
considered to be affordable.
9
ELIGIBLE FORMS OF ASSISTANCE
In accordance with the requirements of the HOME Program and
depending on the specific project, the County will consider the
provision of HOME funding in all of the following forms :
1 . equity investments;
2 . interest-bearing loans or advances;
3 . non-interest bearing loans or advances;
4 . interest subsidies;
5 . deferred payment loans; or
6 . grants .
The County will give strong preference to the provision of HOME
funds in the form of a loan, with deed restrictions specifying
affordability and use requirements . Specific loan terms will be
dependent on the needs of assisted households and the financial and
economic feasibility of individual projects and programs . Other
forms of assistance (e.g. , grants, interest subsidies) will be
considered only if the project applicant demonstrates that it is
clearly necessary in order for the project to be feasible.
ALLOCATION OF FY 1993 HOME FUNDS
Based on the analysis of affordable housing needs and priorities
contained in the Contra Costa County CHAS, the County anticipates
that FY 1993 HOME funds will be allocated among the eligible
program activities as shown in Table I .
Table I
Multifamily rental - new construction $400,000
Multifamily rental - acquisition/rehabilitation $330, 000
Acquisition - first-time homebuyer $100,000
Owner-occupied housing rehabilitation $100, 000
Community Housing Development Organization
Operating Costs $ 20,000
Program Administration - Participating
Jurisdiction $104,000
TOTAL FY 1993 HOME FUNDS $1,054, 000
The final allocation of HOME funds among the programs and
priorities identified in Table I will be determined through a
competitive application process . Criteria which will be used to
evaluate projects include the following:
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1 . Consistency with priorities established by the Board of
Supervisors in the FY 1993 HOME Program Description and
the County' s Comprehensive Housing Affordability
Strategy.
2 . Eligibility under federal regulations for the HOME
Investment Partnership Program.
3 . Project contribution to alleviation of identified,
affordable housing needs in the Urban County.
4 . Degree to which project serves target population (very-
low and low-income households) , including the proposed
number of assisted units and the term of required
affordability.
5 . Project feasibility and cost-effectiveness in meeting
affordable housing needs .
6 . Proposed match and ability of project to leverage other
funds .
7 . Experience of project team in affordable housing
development, management, and related areas .
8 . Project time frame (point at which project will be
initiated and completed) .
9 . Proposed affirmative marketing program to ensure equal
access to housing activity.
In addition to these criteria and in accordance with HUD
requirements, the County will evaluate all proposed projects in
order to ensure that approval of the requested HOME funds will not
result in excessive layering of federal expenditures on the project
and that the total subsidies requested are the minimum needed to
ensure project feasibility.
Matching Requirements
In accordance with federal regulations, Contra Costa County will
require matching funds equal to 30 percent of the HOME funds
provided for new construction projects and 25 percent of the HOME
funds provided for all other projects . Assuming that projects
recommended for FY 1993 funding are consistent with the estimates
provided in Table I, at a minimum the following matching funds will
be required:
Multifamily - new construction $120,000
Multifamily - acquisition/rehabilitation $ 87 ,500
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Acquisition - first-time homebuyer10 $ 30, 000
Owner-occupied housing rehabilitation $ 25,000
TOTAL MATCH $262,500
Eligible sources of match include:
1 . state or local funds;
2 . the value of waived taxes, fees, or other charges by
local jurisdictions;
3 . the value of land or real property; and
4 . the cost of infrastructure improvements directly
associated with the proposed project.
By including leveraging and the provision of required match as one
of the criteria for HOME funding, the County will effectively
encourage project applicants to provide matching resources beyond
the minimum levels required wherever feasible. In addition and as
permitted by HUD11, the County will also work with project
applicants and other jurisdictions in the Urban County to explore
alternative sources of match, including bond financing and local
investments in other (non-HOME) housing projects which qualify as
affordable under HOME regulations . The identification of these
additional sources of match will provide the County with the
flexibility of funding high priority affordable housing projects
which cannot by themselves meet the match requirements .
Community Housing Development Organization Set-aside
In accordance with federal regulations, Contra Costa County will
reserve 15 percent of the FY 1993 HOME allocation or $158, 100 for
investment in affordable housing developed, sponsored, or owned by
Community Housing Development Organizations (CHDOs) .12 Funds
reserved for CHDOs may be used for all HOME-eligible activities
previously identified as priorities for the Urban County,
including: the acquisition, rehabilitation, and new construction
of multifamily rental housing; owner-occupied housing
rehabilitation; and a first-time homebuyer' s program. The County
will also consider applications for predevelopment loans from
CHDOs . A maximum of $30,500 will be available for this purpose,
including 10 percent of the CHDO set-aside ($15,800) and an
10Assumes all units acquired are newly constructed.
liFollowing publication of regulations implementing the Housing and
Community Development Act of 1992.
12The15 percent set-aside represents a minimum funding level. Depending
on specific project requirements, CHDOs may apply and will be considered for HOME
funding in excess of this amount.
12
additional $20, 000 from the County's overall HOME allocation.
In implementing the FY 1992 HOME Program, the County identified and
is in the process of qualifying four potential CHDOs, including two
which have been selected to receive FY 1992 HOME funds for
affordable housing projects . In anticipation of the FY 1993
funding cycle, the County will continue its outreach efforts to
identify additional nonprofits with the potential to become
qualified as CHDOs for purposes of HOME funding. Eligible
organizations may include: nonprofits which are experienced and
currently active in the development of affordable housing in Contra
Costa County; nonprofits which are active in related areas and
potentially interested in establishing joint ventures with an
experienced housing developer; and experienced nonprofit housing
developers in the Bay Area who may be interested in creating a
local subsidiary to develop affordable housing in Contra Costa.
Following identification of interested organizations, the County
will work with the nonprofits to ensure that all eligibility
requirements are met and documented in accordance with federal
regulations . In addition, the County will provide technical
assistance to CHDOs with regard to eligible programs and activities
under HOME and will work with CHDOs to develop projects for
potential HOME funding.
AFFIRMATIVE MARKETING PROCEDURES
The objective of affirmative marketing within the context of the
HOME Program is to promote equal access to housing by all groups
within the relevant market area. In order to accomplish this
objective within the context of the HOME Program and in accord with
federal regulations, Contra Costa County has adopted the following
policies and measures :
1 . Methods for informing the public, owners, and potential tenants
about the HOME Program, federal fair housing laws, and the
County' s affirmative marketing policy. Information concerning
the availability of HOME funding, housing opportunities, and
fair housing and affirmative marketing requirements will be
distributed to: the general public; all jurisdictions and
housing agencies located in the Urban County; nonprofit and
for-profit owners and developers of affordable housing; and
minority and public interest groups representing the County's
disadvantaged populations . Methods of distribution will
include:
a. Press releases to the local news media.
b. Preparation and distribution of an informational brochure
describing the HOME Program, including fair housing and
affirmative marketing requirements and displaying the Equal
Housing Opportunity logotype.
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c. Meetings and workshops with potential applicants for HOME
funds (e.g. , cities, developers, current operators and
owners of affordable housing) .
d. Meetings and workshops with representatives of minority and
other disadvantaged groups in Contra Costa County,
including the NAACP, United Council of Spanish Speaking
Organizations , Farmworker Housing Task Force, Pacific
Community Services, Contra Costa Legal Services Foundation,
North Richmond Neighborhood House, Housing Alliance, and
the Chinese American Political Association.
e. The County will maintain records concerning the above
activities, including copies of press releases, affirmative
marketing materials distributed, and workshops and meetings
held with the above groups and organizations .
2 . Requirements and practices owners of HOME-assisted units must
adhere to in order to carry out the County' s affirmative
marketing procedures and requirements . The County will require
owners of HOME-assisted housing to comply with federal fair
housing law and employ the following affirmative marketing
activities :
a. Advertise the availability of HOME-assisted units on an
equal opportunity basis in local newspapers and community
newsletters, such as those published by minority groups,
neighborhood churches, public service organizations, etc. ;
and on bulletin boards in community gathering spots (e.g. ,
community center, church, supermarket, laundromat, fair
housing/housing counseling agency, and employment office) .
b. Contact appropriate neighborhood and community
organizations and representatives of minority and other
disadvantaged groups to solicit tenants and provide
information about the availability of the HOME-assisted
units on an equal opportunity basis .
c. Display the Equal Housing Opportunity logo at the project
location and in all advertisements pertaining to HOME-
assisted units .
3 . Special outreach procedures to be used by owners of HOME-
assisted units to solicit applications from hard-to-reach
populations who may not otherwise apply for residence in these
units .
a. In conducting the advertising and outreach activities
described in 2 .a and b above, owners of HOME-assisted units
will be required to solicit the cooperation of appropriate
organizations in the relevant market area in identifying
hard-to-reach populations and informing prospective tenants
14
from these groups of the availability of the HOME units on
an equal opportunity basis . Organizations which may be
particularly effective in this effort include community
churches, social service organizations, housing and
homeless service providers, and minority and senior citizen
groups . As appropriate, owners may request organizations
to assist in distributing marketing information concerning
the availability of rental units through newsletters, group
meetings, and organization and community bulletin boards .
b. Again, all advertisements, workshops, meetings and notices
concerning the HOME units will emphasize that the units are
available on an equal opportunity basis .
4 . Recordkeeping requirements . The County will require recipients
of HOME funds to keep records concerning affirmative marketing
activities . These records must include copies of
advertisements placed in newspapers/newsletters and on local
bulletin boards, as well as lists of community groups and
organizations contacted to solicit tenants . Recipients will
also be required to keep information on relevant tenant
characteristics, including ethnic composition, income,
household size, and age and sex of head of household.
5 . Assessment of affirmative marketing activities . The County
will require the information compiled in 4 above to be reported
to the Community Development Department annually as a component
of the project monitoring process . Affirmative marketing
activities will be evaluated to ensure that an adequate level
of activity is maintained. Tenant characteristics will be
compared with population characteristics in the market area as
a further indicator of the effectiveness of the affirmative
marketing program and the absence of discrimination. Where
discrepancies exist, the Community Development Department will
work with the project owner to determine whether additional
affirmative marketing measures are required.
Requirements concerning affirmative marketing and fair housing
compliance will be incorporated in contract and loan agreements
for all HOME-assisted projects . The Community Development
Department will document any complaints received concerning a
project recipient ' s failure to abide by all fair housing and
equal opportunity laws . All such complaints will be carefully
evaluated to determine their validity. In the event that a
violation is identified, the Department will inform the
recipient and take appropriate action to ensure that the
situation is corrected.
MINORITY AND WOMEN' S BUSINESS OUTREACH PROGRAM
It is the policy of the Contra Costa County Board of Supervisors
15
that Minority-owned Business Enterprises (MBEs) and Women-owned
Business Enterprises (WBEs)13 shall have the maximum opportunity
to participate in the performance of County contracts . Services
provided under such contracts may include, but are not necessarily
limited to: real estate; construction; appraisal; property
management; lending; investment banking; underwriting; accounting
and legal representation and advice.
1 . In order to implement this policy within the context of the
HOME Program, affirmative marketing procedures will be employed
by the County Community Development Department to ensure that
appropriate MBE/WBEs are notified of the availability of HOME
funds and potential contracting opportunities . These
procedures include the following:
a. Maintenance of a list of eligible Minority and Women-owned
Businesses for use by the County and prime contractors for
projects funded under the HOME Program. This list is
currently available through the Contra Costa Community
Development Department and the County Administrator' s
Office (Affirmative Action Officer) .
b. Development of informational brochures and promotional
materials describing the HOME Program and potential
contracting opportunities for MBE/WBE participation in HOME
projects . These materials will be distributed through
mailings and meetings with appropriate groups as indicated
in l .c and d ( following) .
c. Mailings to appropriate categories of MBE/WBEs (e.g. , real
estate firms, architects, engineers, building contractors,
property management) and published advertisements in local
newspapers to ensure broad distribution of information
concerning the availability of HOME funds and potential
contracting opportunities .
d. Distribution of information concerning the HOME Program and
potential contracting opportunities through meetings and
other contacts with local resource organizations currently
employed by the County in soliciting MBE/WBE participation
in County projects . These organizations include, but are
not limited to the following: Filipino Chamber of Commerce
of Contra Costa County; Hispanic Chamber of Commerce of
13 An eligible MBE is a business entity at least 51% owned and whose
management and daily business operations are controlled by one or more minorities
who are citizens or lawful permanent residents of the United States and a member
of a recognized racial or ethnic group (Black, Hispanic, Asian or Pacific
Islander, American Indian or Alaskan Native) . Similarly, an eligible WBE is a
business entity at least 51% owned and whose management and daily business
operations are controlled by one or more women who are citizens or lawful
permanent residents of the United States.
16
s •
Contra Costa County; National Association of Minority
Contractors - Northern California; San Francisco/Oakland
Minority Business Development Center; Chinese American
Chamber of Commerce; and the Coalition of Bay Area Women
Owned Businesses . In addition, information concerning the
HOME Program will be distributed through MBE/WBE job fairs
currently sponsored by the County.
e. Where economically feasible, total project requirements
will be divided into smaller tasks or quantities to permit
maximum participation by MBE/WBEs . In addition, the County
will endeavor to establish delivery schedules for projects
which encourage MBE/WBE participation.
f . As appropriate, use the services and assistance of the
Small Business Administration and Minority Business
Development Agency of the Department of Commerce.
2 . In addition to the above measures, the County will also require
prime contractors receiving funds under the County' s HOME
Program to solicit and use qualified MBE/WBEs for subcontract
services wherever feasible. All HOME project contracts will
contain a clause requiring contractors to employ measures
similar to those described in l .b through a above and notify
applicable MBE/WBE firms of available subcontracting
opportunities . To facilitate this effort, the County will make
its list of WBE/MBEs available for use by prime contractors .
3 . The Community Development Department will maintain centralized
records concerning the use and participation of MBE/WBEs as
contractors and subcontractors on all HOME-funded projects . In
addition to information on WBE/MBEs which contract directly
with the County for purposes of the HOME Program, the
Department will require all subrecipients to maintain records
and report annually on the participation of MBE/WBEs as
subcontractors on the HOME projects .
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ATTACHMENT A
FEDERAL REQUIREMENTS
HOME PROGRAM DESCRIPTION 14
REQUIRED COMPONENT PAGE
1 . An executed Standard form 424 1
2 . FY 1993 HOME Program Description 2
a. Estimated use of HOME funds
b. Estimated match requirements
3 . Amount of HOME funds reserved for CHDOs, an
explanation of how PJ will work with CHDOs,
and a description of the activities that
CHDOs will be undertaking
4 . Resale guidelines for first-time homebuyers
program
5 . Affirmative marketing policies and procedures
6 . Minority and Women-Owned Business outreach
program
7 . Required certifications Attachment B
k5/kh/PD93
14TheCounty does not intend to use HOME funds for tenant-based rental
assistance or for forms of investment other than those listed in the federal
regulations. Therefore, the County's Program Description does not contain a
description of rental assistance program administration or additional investment
forms (Section 92.150(b) (6) and (7) ) .
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ATTACHMENT B
CERTIFICATIONS
HOME PROGRAM DESCRIPTION
In accordance with the Home Investment Partnerships Act and with 24 CFR 92.150 of the
Home Investment Partnership Program Rule, contra Costa County as the participating
jurisdiction for the Urban County certifies that:
1. Before committing any funds to a project, it will evaluate the project in accordance with
the guidelines that it adopts for this purpose and will not invest any more HOME funds
in combination with other Federal assistance than is necessary to provide affordable
housing;
2. The submission of the program description is authorized under State and local law (as
applicable), and that it possesses the legal authority to carry out the Home Investment
Partnerships (HOME) Program, in accordance with the HOME regulations;
3. It will comply with the acquisition and relocation requirements of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as amended,
implementing regulations at 49 CFR Part 24 and the requirements of 24 CFR 92.353;
4. It will use HOME funds pursuant to its Comprehensive Housing Affordability Strategy
(CHAS) approved by HUD and all requirements of 24 CFR Part 92;
5. It will or will continue to provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession, or use of a controlled substance is prohibited
in the grantee's workplace and specifying the actions that will be taken against
employees for violation of such prohibition;
b. Establishing an ongoing drug-free awareness program to inform employees about:
(1) The dangers of drug abuse in the workplace;
(2) The participating jurisdiction's policy of maintaining a drug-free
workplace;
(3) Any available drug counseling, rehabilitation, and employee assistance
programs; and
•
•
(4) The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace;
C. Making it a requirement that each employee to be engaged in the performance of
the grant be given a copy of the statement required by paragraph 5.a;
d. Notifying the employee in the statement required by paragraph 5.a that, as a
condition of employment under the grant, the employee will:
(1) Abide by the terms of the statement; and
(2) Notify the employer in writing of his or her conviction for a violation of
a criminal drug statue occurring in the workplace no later that five
calendar days after such conviction;
e. Notifying the agency in writing, within ten calendar days after receiving notice
under paragraph 5.d(2) from an employee or otherwise receiving actual notice of
such conviction. Employers of convicted employees must provide notice,
including position title, to every grant officer or other designee on whose grant
activity the convicted employee was working, unless the Federal agency has
designated a central point for the receipt of such notices. Notice shall include the
identification number(s) of each affected grant;
f. Taking one of the following actions, within 30 calendar days of receiving notice
under paragraph 5.d(2), with respect to any employee who is so convicted:
(1) Taking appropriate personnel action against such an employee, up to and
including termination, consistent with the requirement of the Rehabilitation
Act of 1973, as amended; or
(2) Requiring such employee to participate satisfactorily in a drug abuse
assistance or rehabilitation program approved for such purposes by a
Federal, State, or local health, law enforcement, or other appropriate
agency;
g. Making a good faith effort to continue to maintain a drug-free workplace through
implementation of paragraphs 5.a through 5.f;
h. The grantee may insert in the space provided below the site(s) for the
performance of work done in connection with the specific grant;
Place of Performance (street address, city, county, state, zip code)
6. To the best of its knowledge and belief:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf
of it, to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress in connection with the awarding
of any Federal loan, the entering into of any cooperative agreement, and the
extension, continuation, renewal, amendment, or modification of any Federal
contract, grant, loan, or cooperative agreement;
b. If any funds other than Federal appropriated funds have been paid or will be..paid
to any person for influencing or attempting to influence an officer or employee
of any agency, a Member of Congress, an officer or employee of Congress, or
an employee of a Member of Congress in connection with this Federal contract,
grant, loan, or cooperative agreement, it will complete and submit Standard
Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its
instructions;
C. It will require that the language of paragraph 5 of this certification be included
in the award documents for all subawards at all tiers (including subcontracts,
subgrants, and contracts under grants, loans, and cooperative agreements) and that
all subrecipients shall certify and disclose accordingly.
112Z'7 3
iml Kennedy Date
De uty Director' Redevelopm/ t
c:/jb/homdscti.pta