09-04-2012 - Appropriation of Housing Funds to Housing Related - Item 7 (2).docDATE: September 4, 2012
TO: Andrew G. Pasmant, Executive Director and the Community Development Commission
FROM: Christopher J. Chung
Community Development Commission Director
SUBJECT: APPROPRIATION OF HOUSING FUNDS TO HOUSING RELATED PROGRAMS
RECOMMENDATION:
It is recommended that the Community Development Commission (CDC) make the following appropriation of funds:
$129,635 to Account Number 820-22-2210-6XXX to fund the Housing Preservation Loan Program.
$2,500 to Account Number 820-22.2210-6120 to fund Administrative Support for the San Gabriel Valley Consortium on Homelessness.
$50,000 to Account Number 820.22.2210.6119 to fund the Housing Element Update.
DISCUSSION:
The Housing Preservation Loan Program provides a low interest loan of up to $10,000 to West Covina middle-income homeowners for exterior repairs and improvements. The loans are no interest
for the first 10 years. Loan repayments begin after 10 years and amortize over a period of 20 years at a 5% interest. The Housing Preservation Program focus on preserving middle-income
housing stock in the City of West Covina by utilizing code enforcement as a primary component in identifying residential properties that are in need of exterior improvements.
Since the implementation of the Program in April of 2000, the CDC has funded over 347 loans in assisting West Covina homeowners in making exterior repairs and improvements to their home.
As a result of Assembly Bill X1 26 and the elimination of redevelopment by the State, the Home Improvement Loan programs was suspended due to uncertainty of future funding for the program.
Since then, the State has passed AB 1484, which preserves some funding from previous housing loan repayments (SERAF) and housing program income (loan repayment) back to the CDC, which
has taken on the role of the Housing Successor Agency.
CDC staff is proposing to reinstate funding for the Housing Preservation Program for Fiscal Year 2012-2013 for $129,635 of which $100,000 is to fund the program and $29,635 for materials
and supplies (e.g., printing, postage, chargebacks, legal review, loan administering, advertising, etc.) to continue the Housing Preservation Program and collection of outstanding loans.
The San Gabriel Valley Consortium on Homelessness has requested $2,500 from each San Gabriel Valley City to assist in the administrative support of the SGV Regional Homeless Strategy.
The San Gabriel Valley Consortium on Homelessness is a 501 (c) (3) non-profit organization leading the effort to end homelessness in the San Gabriel Valley by implementing community
designed solutions through regional partnerships with cities, non-profits, and other agencies.
The Planning Department is currently working on updating the Housing Element of the General Plan. The current Housing Element Update will fulfill the responsibility of the City for
the 2008 to 2014 time planning period (also known as the 4th Cycle update). The subsequent Housing Element cycle (5th Cycle) is the period from 2013 to 2020. Since the 5th Cycle Housing
Element Update are required to be completed in 2013, Planning staff intends to release a Request for Proposal to retain a consultant to prepare the 5th Cycle Housing Element Update
as soon as the current Housing Element Update (4th Cycle) is completed. Staff is estimating that the cost to retain a consultant will be a maximum of $80,000.
The CDC currently has approximately $2.2 million of unencumbered Housing Fund Program balance, of which approximately $1.9 million comes from the first year repayment of the SERAF loans.
This SERAF payment was previous approved by the Oversight Board. However, subsequent SERAF payment cannot occur until 2013-2014, and until the Department of Finance approves a Finding
of Completion and subsequent approvals by the Oversight Board. The balance of over $300,000 in the reserve is from previous Housing Loans that have been paid back as well as contractual
repayments from the Lark Ellen Village and Promenade Housing projects.
Prepared by:
Mike Lee
Assistant CDC Director
Reviewed/Approved by:
Approved via phone
Christopher J. Chung Arnold M. Alvarez-Glasman
Community Development City Attorney
Commission Director
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