HomeMy WebLinkAboutHOME Investment Partnership Program - 1999-09-20Council/Agency Meeting Held: i(-. -145 11 na.
Deferred/Continued to:
Appyydd ❑ Conditionally Approved ❑ Denied -p��-City Clerk's Signature
Council Meeting Date: September 20, 1999 1 Department ID Number: ED 99-48
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTIN'
SUBMITTED TO:
HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL
MEMBERS/REDEVELOPMENT AGENCY MEMBERS
SUBMITTED BY:
Ray Silver, City Administrator/Executive DirectorCD
w
PREPARED BY:
David C. Biggs, Economic Development Director 3>
SUBJECT:
COMMITMENT OF HOME INVESTMENT PARTNERSHIP FUNDS
BETWEEN THE CITY AND THE REDEVELOPMENT AGENCY
Statement of Issue, Funding Source, Recommended Action, Alternative Actlon(s), Analysis, Environmental Status,
Attachment(s)
Statement of Issue: The City must commit the balance of $597,000 in 1997 HOME funds
by September 31, 1999. Staff is working with its nonprofit partners to acquire or develop
affordable housing projects in the Oakview neighborhood and other target areas.
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: 1997 HOME Investment Partnership Funds.
Recommended Action: Motion to:
Approve and authorize execution by the Mayor and City Clerk and the Agency Chairman and
Agency Clerk of the attached operating agreement between the City and the Redevelopment
Agency. This agreement commits a minimum -of-$260,300 in 1999 HOME Investment
Partnership Program funds to the Agency to provide affordable housing, per HUD
regulations at 24 CFR Part 92.
Alternative Actilon(s): Do not approve the operating agreement.
Analysis: For the 1997 federal fiscal year, Huntington Beach received $597,000 in HOME
funds. Of these monies, $59,700 was automatically committed to program administration
and $277,000 was committed to the Interval House project. A balance of $260,300 is left to
commit by the September 30, 1999, deadline. C,- )3
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REQUEST FOR •UNCI L/REDEVELOPMENT RENCY ACTION
MEETING DATE: September 20, 1999 DEPARTMENT ID NUMBER: ED 99-48
In 1996, staff confirmed with HUD (see Attachment No. 2) that a commitment of funds
between the City and the Redevelopment Agency is considered valid. The Agency may
choose to commit the funds to a third party developer (such as a OCCHC); or it may decide
to directly contribute to a project. Either way, an affordable housing agreement must be
completed and approved by Council or the Redevelopment Agency before any HOME funds
can be expended.
Environmental Status: Not applicable.
Attachment(s):
1. Operating Agreement.
2. Letter from HUD dated May 10, 1996.
3. HOME Program Summary.
GAB:gab x8831
COMITRAA -2- 09108/99 12:00 PM
L j je CITY OF HUNTINGTON BEACH
2000 MAIN STREET
CA L I FOR N LA 9264$
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
LETTER OF TRANSIITTAL OF ITEM APPROVED BY THE CITY COUNCIL!
REDEVELOP`'IENT AGENCY OF THE CITY OF HUNTINGTON BEACH
DATE: ^ /D IE /'7 q — — -
/y-5� '0 AaTIN67Z)Al? 1&
TO: e��YmlopY�P_l1f (dAei,-) e-wW
Name t-j J
5tre t
Q
City, State, Zi 9A / T
ATTENTION: ��d / !1 /G 6
DEPARTMENTT:
RIEGARLD1N'G: A v� aY_a f /YDIn
/iV1��STil7ellf f4U eW
See Attached Action Agenda Item E—J3 Date of Approval
Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item.
Remarks:
e .'
&t4�-
Connie Brockway
City Clerk
Attachments: Action Agenda Page
Agreement
Bonds T
Insurance
RCA
Deed
Other
CC: Y2G G ;Bra r-
✓
Name
Department
RCA Agree=em
Insurance
Other
Name
Department
RCA Agretmert
Insurance
Other
Name
Department
RCA Agreement
Insurance
Other
Name
Departmcnt
RCA Agreemcric
Insurance
Ottter
Risk Manap Went Dept.
Insurance
Received by Name - Company Name
- Date
G:Followupfcoverltr
(Telephone:
714-536-5227 )
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Commitment 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 e—day of
1999, 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 -love 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 Nine[. -seven Thousand Two Hundred Dollars (S597,000) 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:
4/s A-99Agree:Home 1999
RLS 99-572
$i25i99
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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, 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 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 August 31,
2004.
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
2
41s:4-99Agree: Home] 999
RLS 99-572
&25199
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an amount not less than Two Hundred Sixty Thousand Three Hundred and no/100 Dollars
($260,300.00), 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.
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.
41s:4-99Agree: Home 1999
RLS 99-572
8125199
IN WITNESS WHEREOF, the parties hereby have executed this Agreement as of the
date first above written.
AGENCY:
REDEVELOPMENT AGENCY OF
THE CIT HUNTIN TON BEACH
By:
Chairperson
ATTEST:
Agency Clerk /0 8' 99
APPROVED AS TO FORM:
6 99 Agency Attorney
REVIEWED AND APPROVED:
Execifive Director
4
4/s:4-99Agree: Home 1999
RLS 99-572
8/25/99
CITY:
CITY OF HUNTINGTON BEACH,
a municipal corporation of the
State 7
'forma
ATTEST:
Mayor
rtGG _:
City Clerk
APPROVED AS TO FORM:
-?p City Attorney
REVIEWED AND APPROVED: `
Cit Administrator
INITATED AND APPROVED:
Ad 0,
Director of E nomic Development
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. Outside Project Sub Areas
4. Citywide
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HUD LETTER
ATTACHMENT #2
U.S_ D"rtamt ofoing and Ur -fan Develapxyt
f� g Pacific/Hawaii
N Y Los An9ele3 Atea.office^
1615 West- aiympie- Boulevard
Los Angeles, California 90015-3Wl
May 10, 1996
Greg Brown, Development Specialist/
HOME Coordinator
City of Huntington Beach
2000 Main Street
Huntington Beach,, CA 92648 -
Dear Mr_ Brown:
SUBJECT: HOYE 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
subreczpient, 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,
Ma Ce W. L-Samaniego
P gram Manager, 9DDM4
r.
3 `j 11
APR 14 1996
HOME PROGRAM SUMMARY
ATTACHMENT #3
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■ 1992
■ 1993
■ 1994
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■ 1998
■ 1999
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$6369000
$6839000
City of Huntington Beach 09/07/99 3
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City of Huntington Beach 09/07/99 5
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HOME Proj acts M, mmdarann B rh
Prlo'e_,,;ct Date
17372 Keelson Ln. Feb `94
7812 Barton Dr. June `94
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1701 & 17351 Dec `97 8 $�38O,000
Koledo Ln.
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City of HuntiInx III .each
09/07/99
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City of Huntington Beach 09/07/99 8
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RCA ROUTING SHEET
INITIATING
DEPARTMENT:
ECONOMIC DEVELOPMENT
SUBJECT:
Commitment of HOME Funds
COUNCIL MEETING DATE:
September 20, 1999
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 Attorney)
Attached
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
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
FORWARDED
Administrative Staff 4 X t s7
( }
( }
Assistant City Administrator (Initial
( )
{ }
City Administrator (Initial)
{ )
(OTirP )
City Clerk
{ }
-EXPLANATION FOR RETURN OF ITEM:
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1."#& CITY OF HUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION
HUNTINGTON BEACH Connie Brockway, City Clerk
Office of the City Clerk
To:
Date: Meeting Date: 47-- fit) JM Agenda item:
E— 43
Approved Cox Council Agenda Items: The City Clerk's Office is unable to proceed with the execution of the
attached Agenda Item due to the following requirements that have not been met. When your Agenda Item is
ready to resubmit, please return to: Pat Dapkus, Management Assistant, City Administrator's Office.
I.
Signature(s) Needed
A
On RCA
B
On Agreement
C
Other
2.
Attachments
A
Missing
B
Not identified
C
Other
3.
Exhibits
A
Missing
B
Not identified
C
Other
4.
Insurance Certificate (Proof Of Insurance)
A
Not attached
B
Not approved by City Attorney's Office
C
Signed form notifying City Clerk that department will be responsible for obtaining insurance certificate on this item. (See form attached)
5.
Wording On Request For Council Action (RCA) Unclear
A
Recommended Action on RCA not complete
B
Clarification needed on RCA it y
C
Other /
6.
City Attorney Approval Required
7.
Agreement Needs To Be Changed
A
Page No.
8.
Other
G.agendalmisdrearld