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Home My WebLink AboutHOME INVESTMENT PARTNERSHIP PROGRAM - 1998-06-15Councir/Agency Meeting Held: LLIs /98 Deferred/Continued to: C / A,!g /. "", dApp ved ❑ Conditionally Approved ❑ Denied 2)c-p-4 y City Clerk's Signature n Council Meeting Date: June 15, 1998 1 Department ID Number: ED 98-19 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCILIREDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL MEMBERS/REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: Ray Silver, City Administrator/Executive Directorzw PREPARED BY: David C. Biggs, Economic Development Director �v e - 0�7 SUBJECT: COMMITMENT OF HOME INVESTMENT PARTNERSHIP FUNDS BETWEEN THE CITY AND THE REDEVELOPMENT AGENCY Statement or Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The City must commit $547,200 in 1996 HOME funds by July 31, 1998. Staff is working with Orange County Community Housing Corporation (OCCHC) to acquire or develop affordable housing projects in the Oakview neighborhood. Additional funds may also be used for the Bowen Court senior housing project. Agreements governing the commitment of these funds can not be finalized prior to the commitment deadline. HUD recognizes a commitment of funds 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: 1996 HOME Investment Partnership Funds Recommended Action: Motion to: Authorize execution by the Mayor and City Clerk and the Executive Director and Agency Clerk of the attached operating agreement between the City and the Redevelopment Agency. This agreement commits a minimum of $547,200 in 1996 HOME Investment Partnership Program funds to the Agency to provide affordable housing, per HUD regulations at 24 CFR Part 92. Alternative Action(ss): Do not approve the operating agreement. REQUEST FOR S-0-1 UNCIUREDEVELOPMENT AGENCY ACTION MEETING DATE: June 15, 1998 DEPARTMENT ID NUMBER: ED 98-19 Analysis: For the 1996 federal fiscal year, Huntington Beach received $608,000 in HOME funds. Of these monies, $60,800 was automatically committed to program administration. A balance of $547,200 is left to commit by the July 31,1998 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. Environmental Status: Not applicable. Attachments GAB:gab x8831 COMITRAA 1. Operating Agreement 2. Letter from HUD dated May 10, 1996 1 HOME Program Summary =, !; M''� n c7 -2- 05128/98 8:43 AM 6 N OPERATIVE AGREEMENT ATTACHMENT #1 WA CITY OF HUNTINGTON BEACH COMMITMENT OF FUNDS AGREEIV11ENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY This Commitment of Funds Agreement (the "Agreement"), is made this /-', 4 day of .i �...��. . 1998, by and between the City of Huntington Beach, a municipal corporation ("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 Five Hundred Forty-seven Thousand Two Hundred Dollars ($547,200) from the United States Department of Housing and Urban Development pursuant to the National Affordable Housing Act of 1990 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, rehabilitate, or construct certain real property and/or improvements located in the City of Huntington Beach, California (as more particularly described in Exhibit A and hereinafter 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: pda/ag=!homcfund'5r2l/9rds98-312 Q ARTICLE 1. DEFINITION'S 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, et 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. 1.6 "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 with adjustments for household size. ARTICLE 2. USE OF FUNDS 2.1 COMMITh'IENT 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, 2003. 2.2 AMOUNT OF HOME FUNDS. On and subject to the terms and conditions of this Agreement, City agrees to provide Agency and Agency agrees to accept HOME Funds in pddagree'homefund'5/21 /9R.'rls98-312 2 U V 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 CO�'RtUNICATIONS. 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. 4.3 AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to this Agreement must be in writing, and shall be made only if executed by both JHC and City. pWagesl mcfund'Sl21199!ris98-312 3 U IN IN WITNESS WHEREOF, the parties hereby have executed this Agreement as of the date first above written. AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH By: wo - '..' na., 4 44 ff / Ch ' person ATTEST: L Agency Clerk a APPROVED AS TO --FORM: �- d S� Agency Attorney REVIEWED AND APPROVED: � cA:�� ecutive Director pda4greChornefund'5f2f,P9&'6%99-3I2 4 CITY: CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California /'Iayor ATTEST: ' City Clerk APPROVED AS TO FORM: r 1�7_City Attorney z REVIEWED AND APPROVED. ate, c.A City Administrator IMITATED AND APPROVED: &W elo Director of Econom c Development MA Exhibit "A" Property HOME funds awarded under this Agreement will only be used for the acquisition and rehabilitation or construction of single or 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. Citywide /01 Letter from HUD dated May 10, 1996 ATTACHMENT #2 v �6d f U.S. Department of Housing wd Urban Development Pacific/Hawaii Or Los Angeles- Area .dfffm.7 1615 nest 01M1c: Boulevard . i Los ANeles, California 90015-3801 •yac� May 10, 2996 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 - Commitment. 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. �PTVIP very sincerely yours, --r �s I W May . L6e--Sams P gram Manager, 9DDM4 APR 141996 OF V HOME PROGRAM SUMMARY ATTACHMENT #3 \\ . \ �h\F Huntington, eacts o ,27.7 Square Miles ■ Ethnicity\ \ \ • �► � ° \White. 0 187,370 Population AL 12% Asian/P I .► 5.69% Other o Median Income: A\1°1° Black $659139 ■ Median House alue %Me 305,000 o $34,711 Per Capita ■anRent 1990 Census Updates Urban Decision Systems, Scpt. 1997 City of I lunt ington Beach 5/27/98 U he HOME Program NA Federal Housing B\Iock Grant * Crea ed by theational Affordable Housing Act of 19 0 ("NAHX7) o Must be used to create or,preserve housing units for very loN�,income peopleAbelow 60% of County Median Income) City of Huntington Beach 5/27/98 3 The HOMEPro ram \ \ :V \ ■ Huntingto4each has participat4in the program since the,1992federal fiscal =year, the f rst�year fundin;c became available \ \\ \ ■ 1992 ■ 1993 ■ 1994 ■ 1995 ■ 1996 ■ 1997 City of Huntington Beach 5/27/98 �881 000 $584,000 S5439000 S583,000 \% 56089000 S5979000 How HB Has Used. HOME M\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: — Orange County Community .Housing Corp — Shelter \for the Homeless \ — Jamboree Housing `•. Citv of I-luntington Beach 5/27/98 6 3 Oakview Neig boyhood ■ 68\\Acres; Beach lvvd. Warner AVe:ISlater ■ Annoxed from County in 1957 ■ Project Area Formed in 1982 ■ CDBG Enhancement,Area ■ Mixture of Multifamily, SFR,& Commercial/Office/Retail City or I luntington Bcach 5/27/" 7 HOME rojects in cityorfinntington Beach ,Huntington 3R7/98 Beach V HOME Protects in City or Huntington Beach \ \ Hun inc V27/9s n Beach HOME Program\Accomplishments Results: — 38 Units Preserve 'for ery- Low Income Families — Income Restrictions in Place or 30 to 59 Years » HOME Requires Between 5 & 20 Years Affordability \\X, City of Huntington Beach 5127198 10 06/15198 - CouncillAgYncy Agenda - Page 11 E42. (City CouncillRedevelopment Agencv) Aonrove Commitment Of Home Investment Partnership Funds Agreement Between The City And The Redevelopment Agency (600.30) - Approve and authorize execution by the Mayor and City Clerk and the Executive Director and Agency Clerk of the operating Commitment of Funds Agreement Between the City and the Redevelopment Agency. This agreement commits a minimum of $547,200 in 1996 HOME Investment Partnership Program funds to the Agency to provide affordable housing per HUD regulations at 24 CFR Part 92. Submitted by the Economic Development Director. [Approved 7-O] E-13. (City Council) Approve Citv's On -Going Participation In Regional Economic Development Collaborative (460,30) - Approve city participation in an on -going effort to enhance regional economic development collaboration. Submitted by the Economic Development Director. (Participating cities are Anaheim, Fullerton, Garden Grove, Huntington Beach, Irvine, Santa Ana, Brea; also staff representatives from the Orange County Business Council.) [Approved 7-O] E-14. (City Council) Approve Amendment No.1 To Aareement With Black & Veatch - For Evaluation Of Alternative Chlorination Methods/Chlorine Room Modifications For Water Wells (600.10) - Approve Amendment No. 1 to the agreement between the city and Black & Veatch to provide additional consulting services for $3,560 - "Amendment No. 9 to Agreement between the City of Huntington Beach and Black & Veatch for Evaluation of Alternative Chlorination Methods and Development of Recommendations for Chlorine Room Modifications for Water Wells" - and authorize the Mayor and City Clerk to execute the amendment. - Submitted by the Actinq Public Works Director. [Approved 7-0] E-15. (City Council) Take No Action Regarding Request For Additional Mobile Home Survey Funds (Lawrence Research) - Take no action regarding the additional survey work and direct the Mobile Home Advisory Board to utilize the existing survey results in developing a work program given the General Fund budget amendment moratorium enacted by the City Council on March 16, 1998. Submitted by the Economic Development Director. [Appro ved 7-01 E-16. (City Council) Approve Principal Decision Systems international (PDSI) License And Maintenance Agreement With Modified Indemnification Clause (Fire Department) (600.10) -Approve and authorize Mayor and City Clerk to execute the Agreement Between the City of Huntington Beach and Principal Decision Systems lntemational for Software License and Maintenance with modified indemnification clause. Submitted by the Acting Assistant City Administrator/Fire Chief. [Approved 7-0] 01) CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK CALIFORNIA 92648 LETTER OF TRANSNT=AL OF ITEAI APPROVED BY THE CITY COUNCIIJ REDEVELOPRIENT AGENCY OF THE CITY OF HUNTINGTON BEACII DATE: TO: Name ATTENTION: DEPARTAIENT: Street REGARDLYG: _ Gvrnn„ -�-i-vie-•�-/" a-� 7 M-e— Ciry, Stste,Zip See Attached Action Agenda Item /,2 Date ofApproval Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: ""1 c.e.- s'-p�.�W',-7 Connie Brockway City Clerk Attachments: Action Agenda Page Agreement Bonds Insurance RCA Deed Other � .14 CC: � z-� F.t t�D2 —V". -n.-A�v,-�.4 _ Name Department RCA Agreement Insurance Other Name RCA Ageement Insurance Other Department Name Department RCA Name Department RCA Risk management DCpt. Atreement Insurance Other Agreement Insurance Other Insurance Received by Name - Company Name - Date GTO110Ncup/coverltr ITolephon e: 714536-5227 ) U RCA ROUTING SHEET INITIATING ECONOMIC DEVELOPMENT DEPARTMENT: SUBJECT: Commitment of HOME Funds COUNCIL MEETING DATE: June 15, 1998 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (wlexhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) (Signed in full by the City Attomey) Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attome) Not Applicable Certificates of Insurance (Approved by the City Aftomey) Not Applicable Financial Impact Statement (Unbudget, 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 FOR UDED Administrative Staff ( } Assistant City Administrator (Initial) ( } ( ) City Administrator (Initial) { V } City Clerk { } EXPLANATION FOR RETURN OF ITEM: