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HomeMy WebLinkAboutHOME Investment Partnership Program - 1997-07-21Page 8 - Council/Agenc�da - 07/21197 E. CONSENT CALENDAR All matters listed on the Consent Calendar are considered by the City Council and Redevelopment Agency to be routine and will be enacted by one motion in the form listed. Recommended Action: Approve all items on the Consent Calendar by affirmative roll call vote. E-1. (City Council/Redevelopment Agency) Minutes (120.65) - Approve and adopt minutes of the City Council/Redevelopment Agency adjourned regular meetings of June 23, 1997 and .tune 30, 1997 as written and on file in the Office of the City Clerk. Submitted by the City Clerk [Approved and Adopted 6-1 (Harman -- Abstain[] E-2. (City Council) Retention Of Expert Witness - Peck Reservoir Litioation - Professional Services Contract With Engineering Firm Of Wiss, Janney, Elstner Associates Inc. - City v. Montgomery Watson, et al - Amendment To Professional Liability Insurance Coverage 60( 0.10) -1. Approve and authorize the Mayor to sign and the City Clerk to attest the Professional Services Contract between the City and Wiss, Janney, Elstner Associates, Inc. for consultant expert witness engineering services in connection with the Peck Reservoir Litigation (Original agreement will be provided to the City Clerk for execution of signatures); 2. appropriate $65,000 into Account No. E-EW-AT-130-4-05-00 for Wiss, Janney, Elstner Associates Inc.; and 3. approve deductible of $250,000 on professional liability insurance coverage. Submitted by the Citv Attomev [Approved 7-0] E-3. (City Council/Redevelopment Agencv) Commitment Of Home Investment Partnership Funds - Agreement Between The City And The Redevelopment Agency For Acquisition And Development Of Affordable Housing Proiects - Oakview Area - With Orange County Community Housing Co oration OCCHC (600.30) - Authorize execution by the Mayor and City Clerk and the Chairman and Agency Clerk of the Commitment of Funds Agreement between the City of Huntington Beach and the Huntington Beach Redevelopment Agency. This agreement commits a minimum of $433,900 in 1995 HOME Investment Partnership Program funds to the Redevelopment Agency to provide affordable housing, per the United States Department of Housing and Urban Development (HUD) regulations at 24 CFR Part 92. Submitted by the Economic Development Director [Approved 7-01 E4. Deleted (8) Council/Agency Meeting Held: 7 .217 Deferred/Continued to: CrApproved ❑ Conditionally Approved ❑ Denied 7-0 City CI rk's Signature Council Meeting Date: July 21, 1997 Department ID Number: ED 97-30 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL MEMBERS/REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator/Executive Directo L�--- PREPARED BY: DAVID C. BIGGS, Economic Development Director SUBJECT: COMMITMENT OF HOME INVESTMENT PARTNERSHIP FUNDS BETWEEN THE CITY AND THE REDEVELOPMENT AGENCY Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Statement of Issue: The City must commit $433,900 in 1995 HOME funds by July 31, 1997. Staff is working with Orange County Community Housing Corporation (OCCHC) to acquire or develop affordable housing projects in the Oakview area. While a project has been recently identified, an agreement can not be finalized prior to the commitment deadline. HUD recognizes a commitment of Rands between the City and the Redevelopment Agency as a legitimate commitment, and staff recommends this approach as a way to preserve the funds. Funding Source: 1995 HOME Investment Partnership Funds Recommended Action: Motion to: Authorize execution by the Mayor and City Clerk and the Executive Dif and Agency Clerk of the attached operating agreement between the City and the Redevelopment Agency. This ,agreement corrtmits a minimum of $433,900 in 1995 HOME Investment Partnership Program funds to the Agency to provide affordable housing, per HUD regulations at 24 CFR Part 92. Altemative_ActionLs): Do not approve the operating agreement. v J � REQUEST FOREZ�l1NC1UREDEVELjOPMENTA(iGENCYACTIONV MEETING DATE: July 21,1997 DEPARTMENT ID NUMBER: ED 97-30 Analysis: For the 1995 federal fiscal year, Huntington Beach received $583,000 in HOME funds. Of these monies, $90,800 were committed to the Queens Lane acquisition project, and $58,300 were automatically committed to program administration. A balance of $433,900 is left to commit by the July 31, 19976 deadline. Staff has confirmed with HUD in the past (see Attachment No. 2) that a commitment of funds between the City and the Redevelopment Agency is considered a valid commitment. The Agency may choose to commit the funds to a third party developer (such as a OCCHC); or it may decide to directly contribute to a project. Either way, an affordable housing agreement must be completed and approved by Council or the Redevelopment Agency before any HOME funds can be expended. OCCHC has entered into escrow on 17351 Koledo Lane. After the required environmental review period (30 days), an affordable housing agreement will be completed, and this agreement will commit a portion of the remaining 1995 HOME funds. Staff will seek Council/Agency approval of the agreement in approximately 60 days. Environmental Status: Not applicable. Attachments : List attachment(s) below. MTU:DCB:GAB:lb C COMITRAA.DOC No. Description 1. Operating Agreement 2. Letter from HUD dated May 10, 1996 3. HOME Program Summary x8831 -2- 06127197 11:16 AM oh ,�� CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CRY CLERK CITY CLERK LETTER OF TRANSMITTAL REGARDING ITEM APPROVED BY THE CITY COUNCILIREDEVELOPNIENT AGENCY APPROVED ITEM DATE: / 7 TO: ATTENTION: Same street city, state, Zip See Attached Action Agenda Item _3 DEPARTMENT: REGARDING:&22u _ _c Date of Approval _ —ZL Enclosed For Your Records Is An Executed Copy Of The Above Referenced Item For Your Records. Connie Brockway City Clerk Attachments: Action Agenda Page Agreement Bonds Insurance RCA Deed Other Remarks: Name I1cputmcn RCA/ Agrcemynt Insurance Othcr e artment RCA% Age%mcr Insurance Other Name Department RCA Agrecment Insurance Other Risk .%fanagement Department Insurance Copr G: Fo11o%vup'agrmtslransltr 3Talephone- 714.536-5227) Operating Agreement ATTACHMENT #1 CITY OF HUNTINGTON BEACH COMMITMENT OF FUNDS AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY This Commitment of Funds Agreement (the "Agreement'), is made this � day of 1997, by and between the City of Huntington Beach, a municipal corpo tior ("City"), and the Redevelopment Agency of the City of Huntington Beach, a body politic of the State of California, organized and existing under the Community Redevelopment Law of the State of California ("Agency"). RECITALS A. City wishes to expand the supply of decent, safe, sanitary and affordable housing, with primary attention to rental housing, for very -low income and low income residents in the City of Huntington Beach. B. City has received HOME Investment Partnership Program funds in the amount of Four Hundred Thirty-three Thousand Nine Hundred and no/100 Dollars ($433,900.00) from the United States Department of Housing and Urban Development pursuant to the National Affordable Housing Act of I990 for the purpose of expanding the supply of decent, safe, sanitary and affordable housing for very -low and low income persons and families (hereinafter, the "Funds') C. Agency proposes to acquire and rehabilitate certain real property and/or improvements located in the City of Huntington Beach, California (as more particularly described in Exhibit A and hereinaftger referred to as the "Property") and carry out on the Property eligible activities permitted under the HOME Regulations to provide housing affordable to low-income and very -low income households as defined in this Agreement, (hereinafter referred to as the "Project"). D. Agency wishes to receive from City, and City wishes to make available to Agency, the Funds to support development of the Project. NOW, THEREFORE, IN CONSIDERATION of the mutual agreements, obligations, and representations, and in further consideration for the provision of HOME funds, RDA and City hereby agree as follows: 4/s: PCD:Agrce:1 IOME-623 RLS 97-500 6 25/97 ARTICLE 1. DEFINITIONS The following terms have the meanings and content set forth in this section wherever used in this Agreement. 1.1 "Eligible Activities" means permitted use of the Funds pursuant to the HOME Regulations. 1.2 "Funds" means the funds provided to Agency by City pursuant to this Agreement. 1.3 "HOME Regulations" means all requirements imposed on projects assisted under the Home Investment Partnership Program as contained in 42 U.S.C. Sections 12701, el seq., and Part 92 of Title 24 of the Code of Federal Regulations and other implementing rules and regulations. 1.4 "HUD" means the United States Department of Housing and Urban Development. 1.5 "Low Income Household" means a household whose annual income does not exceed eighty percent (80%) of the median income for Orange County as determined by HUD with adjustments for household size. I.6 "Project" is the acquisition of the Property and the construction or rehabilitation of certain improvements thereon or the administration or implementation of any other eligible activity to provide housing affordable to persons or families of very low-income and low-income according to the terms of this Agreement. 1.7 "Regulatory Agreement" means the agreement executed by Agency or an eligible third party and the City in a form satisfactory to City and recorded against the Property prior to or contemporaneously with the payment of the Funds which regulates, among other things, the operation, leasing, tenant selection, income certification, affordability restrictions, continuing occupancy requirements and maximum rental charges of the property. 1.8 "Very Low Income Household" means a household whose annual income does not exceed fifty percent (50%) of the median income for Orange County as determined by HUD %kith adjustments for household size. ARTICLE 2. USE OF FUNDS 2.1 COMMITMENT OF FUNDS. Pursuant to this Agreement, Agency shall use the Funds for the Project. The Agency shall expend the Funds by no later than July 31, 2000. 2 41s: PCb:Agmc:110ME•-625 R S 97-500 6I25197 2.2 AMOUNT OF HOME FUNDS. r1 n On and subject to the terms and conditions of this Agreement, City agrees to provide Agency and Agency agrees to accept HOME Funds in an amount not less than Four hundred Thirty-three Thousand Nine Hundred and no/100 Dollars ($433,900.00), which shall be used for the Project. 2.3 REGULATORY AGREEMENT. As a condition of the provision of the Funds, Agency shall execute (or cause to be executed by an assignee), among other things, a regulatory agreement which shall be recorded against any property acquired with the Funds. The regulatory agreement is to secure City's continuing interest in the affordability and habitability of the housing contained in this Agreement and the regulatory agreement. ARTICLE 3. EMPLOYMENT 3.1 PREVAILING WAGES. All projects for new construction or rehabilitation of affordable housing with 12 or more units assisted with HOME Funds shall comply with HUD requirements pertaining to such contracts and the applicable requirements of the regulations of the Department of Labor governing the payment of wages and the ratio of apprentices and trainees to journeymen. However, nothing in this section is intended to relieve the Agency or any contractor/subcontractor of any obligation for payment of higher rates if required by State or local law. ARTICLE 4. GENERAL PROVISIONS 4.1 NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices, demands and communications between Agency and City shall be sufficiently given and shall not be deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, to the principal offices of Agency and City as follows: CITY: City of Huntington Beach Department of Economic Development 2000 Main Street Huntington Beach, CA 92648 Attn: City Administrator AGENCY: Redevelopment Agency of the City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Executive Director 4.2 INTEGRATION. This Agreement constitutes the entire agreement of the parties and supersedes any all prior negotiations. 3 4/sTMAgmel 101ME-625 RLS 97-500 6125/97 4.3 AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to this Agreement must be in %%Titing, and shall be made only if executed by both 3HC and City. IN WITNESS WHEREOF, the patties hereby have executed this Agreement as of the date first above written. AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH 91 V "yiii>R1� (print name) -Upk -ea-E R Its: Chairman ATTEST::. Agency Clerk VIEWED AND APPROVED: ity Administrator 4 4/s:I'MAgrce:110ME-62S RiS 97-500 6125/97 CITY: CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California ATTEST: Mayor City Clerk APPROVED AS TO FORM: yy -,i7 City Attorney INITIATfD AND APPROVED: 04 C)w - Director of Economic Development Exhibit "A" Property HOME funds awarded under this Agreement will only be used for the acquisition and rehabilitation of multifamily rental properties. The order of priority for the targeting of these funds to specific areas is as follows: 1. Redevelopment Project Areas • Oakview • Main -Pier • Talbert -Beach 2. CDBG and HOME neighborhood enhancement areas (not listed in priority order) • Oakview • Amberleaf Circle • Florida -Utica • Beach -Garfield • Newland • Washington • LIBERTY 3. City-wide 4/s:PCD:Agrce:l tome-625 RLS 97-SDO 6/25197 l Letter to HUDMUD Response ATTACHMENT #2 w Office of the Director Housing Redevelopment Fax May 6, 1996 City of Huntington Beach 2000 MAIN STREET CALIFORNIA92M DEPARTMENT OF ECONOMIC DEVELOPMENT 536-5582 536-5542 536-5582 (714) 375-5087. Ms. Mary Ann Soos Community Planning and Development Representative U.S. Department of Housing and Urban Development 1615 West Olympic Boulevard Los Angeles, CA -- VIA FACSIMILE Subject: Comnrftment of HOME Funds rrom the City to the Redevelopment Agency Dear Mary Ann: Under the current HOME regulations governing the commitment of funds prior to the commitment deadline, would a commitment of HOME funds from the city to the city's redevelopment agency constitute a valid commitment?. This commitment would be made via an operating agreement that spells out the terms of the commitment and governs any subsequent expenditures. Secondly, if this type of arrangement is considered valid, could the redevelopment agency loan the funds to a third party subrecipient, or a CHDO?; or would the redevelopment agency be solely responsible for the expenditure of the HOME funds on a qualified project? Because the commitment deadline for 1994 funds is looming, I could appreciate a response from you as soon as possible. If you need additional clarification, please call me at (714) 960-8831. Thank, you, Maryanne, for your kind assistance!. DevdllbNent Specialist/HOME Coordinator GAB:gb ` �..ar►,,� U.S. 0"rt f housing and Urban 0 t 4. Facifielsavali * ,t Los Angetes Area Off ice.- r� �Ill 11 1615 hest Oly91e Boutevard 1`1 Los Angetes, California 90015-3801 May I0, 1996 Greg Brown, Development Specialist/ HOME Coordinator City of Huntington Beach 2000 Main Street Huntington Beach, CA' 92648 Dear Mr. Brown: SUBJECT: HOME Program Commitment of HOME Funds from the City to the Redevelopment Agency This is in response to your letter dated May 6, 1996, regarding commitment of HOME funds by the deadline. You asked whether or not a commitment of HOME funds to the City's Redevelopment Agency constitutes a valid commitment. In addition, if this type of arrangement is considered valid_, can the Redevelopment Agency loan the funds to a third party subrecipient or a CHDO? As you discussed with Maryann Soos of this office, the City can enter into a legally binding agreement with the Redevelopment Agency to produce affordable housing as referenced under 24 CFR 92.2, Definitions - Corruaitment. The Redevelopment Agency, as a subrecipient, can then enter into a separate agreement with a third party or a CHDO to produce affordable housing. If you have any questions, please contact Maryann E. Soos, Community'Planning and Development Representative, at (213) 251-7268. Very sincerely yours, �l t 10", �d l//// � M W. Lee-San,anlego P gram Manager, 9DD144 APR 14 1996 n 1 ' ! HOME Program Summary ATTACHMENT #3 D City of Huntington Beach W HOME Investment Partnership Program J J City of Huntington Beach 6/24197 The HOME Program e A Federal Housing Block Grant • Created by the National Affordable Housing Act of 1990 ("NAHX) � • Must be used to create or preserve housing � units for very low income people (Below 60% of County Median Income) City of Huntington Beach 6/24/97 2 The HOME Program • Huntington Beach has participated in the program since the 1992 federal fiscal year, the first year funding became available • 1992 $8815000 • 1993 • 1994 • 1995 • 1996 City of Huntington Beach 6/24/97 $584;000 $543,000 $583,000 3 3 J Eligible HOME Activities s There are five categories of expenditures: 3 — Acquisition • Of existing housing • Vacant land —Rehabilitation -- New Construction —Tenant-Based Rental Assistance —First--Time Homebuyer Assistance City of Huntington Beach 6/24/97 V WA 01 Ineligible Uses of HOME e HOME funds cannot be used for: J Modernizing public housing Matching funds for other federal programs � >> Public facilities >> Public improvements >> Infrastructure projects City of Huntington Beach 6/24/97 5 J HOME Administration e 10% of the grant can be used for program � administration • 15% of the funds must be given to a qualified � CHDO (Community Housing Development Organization), a special housing nonprofit • Beginning with the 1993 fiscal year, HOME funds must be matched at 25% City of Huntington Beach 6f24/97 . W Allocation of HOME Funds' 1992-95 i $1,943,250 M9,100 $388,650 Admin ■CHDO 91 Projects City of Huntington Beach 6/24/97 7 How HB Has Used HOME • To date, HB has used HOME funds � exclusively to assist CHDO's with the acquisition & rehab of multifamily housing in the Oakview enhancement area • CHDO's: City of Huntington Beach Orange County Community Housing Corp j Shelter for the Homeless Jamboree Housing 6/24/97 j ic HOME Projects in Huntington Beach Project Date Units Sit 3 17372 Keelson Ln. Feb `94 4 $2251000 7812 Barton Dr. June '94 4 $3201000 � 17382 Keelson Ln. Aug `94 4 $345,000 ,j 17361--71 Koledo Ln. Apr `95 10 $518,000 17422-32 Queens Ln. Dec'96 8 $490,000 �� City of Huntington Beach 6/24/97 9 HOME Acquisition & Rehab s Average Per Unit Cost Acquisition 3 $63,000 • Average Per Unit Cost Rehab City of Huntington Beach $15,000 6/24197 10 .3 "1 HOME Program Accomplishments e Results:. 1 3 30 Units preserved for very low income individuals and families � Income restrictions in place for 30 to 59 years —HOME requires between 5 & 20 Years Affordability City of Huntington Beach 6/24/97 11 RCA ROUTING SHEET INITIATING DEPARTMENT: ECONOMIC DEVELOPMENT SUBJECT: Commitment of HOME Funds COUNCIL MEETING DATE: July 21, 1997 . . RCA ATTACHMENTS. STATUS Ordinance w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Affome Attached Subleases, Third Party Agreements, etc. (Approvedas to form by City Attome Not Applicable Certificates of Insurance (Approved by the City Atfome Not Applicable Financial Impact Statement Unbud et, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report If applicable) Attached Commission, Board or Committee Report If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FOMARDED Administrative Staff Assistant City Administrator Initial City Administrator(Initial) :d Ax x �r Citv Clerk EXPLANATION FOR RETURN OF ITEM: