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HomeMy WebLinkAboutORDINANCES - 05221984 - 1.43 TO: BOARD OF SUPERVISORS Contra FROM: Anthony A. Dehaesus Director of Planning Costa DATE: May 14, 1984 `- ou' "1 SUBJECT: Application for Deferred Payment Rehabilitation Loan Funds SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION Approve the submittal of an application for State Deferred Payment Rehabilitation Loan Funds; and authorize the Director of Planning to certify and execute said application. BACKGROUND In 1978 the State 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 Depatment 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. Local government agencies eligible to participate in this program are those with operational housing rehabilitation programs. The County was a recipient of two $50,000 allocations under the first and second rounds of allocation for this program. Fourteen loans were made under the previous programs. 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 of the program cannot be paid out the 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 rehabilitation work is a current function of the program and no additional time is required. 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 outweight 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 1984-85. The attachment summarizest e provisions of the program and the application process. The Program is another sour a of funds by which the County can provide rehabilitation assistance to low d moderat income households. CONTINUED ON ATTACHMENT: YES SIGNATURE: ; j RECOMMENDATION OF COUNTY ADMINISTRATOR CO NDATION F ARD CO ITTEE APPROVE OTHER SIGNATURE(S) (., C iV—/Z— ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS UNANIMOUS (ABSENT ) I 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 SUPERVIS ON THE DATE SHOWN. CC: Building Inspection ATTESTED Auditor-Controller J.R. OLSS N, COUNTY CLERK Planning AND EX OFFICIO CLERK OF THE RD M382/7-88 ZG BY DEPUTY