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HomeMy WebLinkAboutStrategic Planning Retreat - - Mission Statement - Three Ye C I T Y O F H U N T I N G T O N B E A C H STRATEGIC PLANNING RETREAT 30 January 2009 * Huntington Beach Public Library Marilyn Snider, Facilitator—Snider and Associates (510) 531-2904 Gail Tsuboi, Graphic Recorder—Tsuboi Design (925) 376-9151 MISSION STATEMENT The City of Huntington Beach provides sustainable quality services to maintain and enhance our safe and vibrant community. THREE-YEAR GOALS 2009-2012 • not in priority order ► Maintain and enhance our financial reserves ► Maintain, improve and obtain funding for public improvements ► Maintain and enhance public safety ► Enhance economic development ► Improve internal and external communication NEXT STEPS/FOLLOW-UP PROCESS WHEN WHO WHAT Within 48 hours of All recipients Read the retreat record. receipt By February 6,2009 Department Heads Share and discuss the Strategic Plan with staff. February 10,2009 Executive Team Review the"Internal Weaknesses/Challenges' list for (City Administrator-lead) possible action items. At the March 2,2009 City Council Present the 2009-2012 Strategic Plan to the public. City Council meeting (Mayor-lead) Monthly City Council Monitor progress on the goals and objectives and revise City Administrator objectives(add,amend and/or delete),as needed. (Mayor- lead) Monthly City Administrator Prepare and distribute the updated Strategic Plan Monitoring Matrix July 31,2009 Mayor Strategic Planning Retreat to: (Friday) City Council - more thoroughly assess progress on the Goals and 8:00/8:30 am-4:00 pm City Administrator Strategic Objectives Executive Team - review Core Values - develop Strategic Objectives for the next six months 2 HUNTINGTON BEACH * SIX - MONTH STRATEGIC OBJECTIVES 30 January 2009 through 15 July 2009 THREE-YEAR GOAL: MAINTAIN AND ENHANCE OUR FINANCIAL RESERVES WHEN WHO WHAT STATUS COMMENTS DONE ON REVISED TARGET 1 By the May 4, 2009 City Administrator Present to the City Council for direction and City Council and Finance Director prioritization the FY 2008/2009 mid-year budget meeting review, including options. 2 June 30,2009 Finance Director,working Develop and present to the City Council for action with the City Treasurer a policy to maintain the City of Huntington Beach's financial reserves. 3 July 15,2009 Deputy City Administrator Update and present to the City Council for action Emery the Long-Term Financial Plan. A THREE-YEAR GOAL: MAINTAIN, 141PROVEAN® OBTAIN FUNDING FOR PUBLIC IMPROVEMENTS WHEN WHO WHAT STATUS COMMENTS DONE ON REVISED TARGET 1 At the Feb.2, City Attorney Update the City Council in closed session on 2009 City Council litigation related to the Senior Center. meeting 2 At the April 20, Deputy City Administrator Evaluate the ability of the RDA to accelerate 2009 City Council Emery and the Economic repayment of the debt and/or issue new debt to the and RDA meeting Development Dir. city to fund the infrastructure shortfall and present the results to the City Council/RDA for direction. 3 June 1,2009 Deputy City Administrator Evaluate the feasibility of using assessment Hall,working with the districts as an option to fund facilities(e.g., parks, Finance Dept.staff and landscaping, block walls, lighting)and present the City Treasurer and staff results to the City Council for direction. 4 July 15,2009 Deputy City Administrator Evaluate the methodologies the city uses in Hall-lead, Deputy City contracting for public improvements and Administrator Emery, maintenance and recommend to the City Council Public Works Director., for action options to reduce costs. City Attorney, Finance Dir. B THREE-YEAR GOAL: MAINTAIN AND ENHANCE PUBLIC SAFETY WHEN WHO WHAT STATUS COMMENTS - DONE ON REVISED TARGET 1 June 1, 2009 Police Chief,working with Develop and implement a plan to maintain and the Fire Chief and enhance public safety services during the summer Community Services Dir. tourist season within current economic constraints. 2 July 1,2009 Fire Chief,working with the Present to the City Administrator a plan to meet Police Chief, Community critical public safety facility needs, including funding, Services Dir., Pubic Works to maintain the current level of service and response Dir., Finance Dir., Building standards for the community. Safety Dir., City Treasurer 3 June 15,2009, HR Director—lead and Negotiate a continuation agreement with SCLEA contingent Community Services (recurrent lifeguards)to ensure lifeguard services upon City Director continue through the summer. Council approval C THREE-YEAR GOAL: ENHANCE ECONOMIC DEVELOPMENT WHEN WHO WHAT STATUS COMMENTS DONE ON REVISED TARGET 1 At the March 16, Economic Development Dir. Present to the City Council for direction the 2009 City Council Shopping Center Blight Study, including meeting recommendations. 2 At the June 15, Economic Development Dir., Bring to the City Council for action identified change 2009 City Council City Attorney, Planning Dir., to the Inclusionary Housing Programs, including meeting with input from the Planning ordinances. Commission 3 July 15,2009 Economic Development Dir., Narrow potential sites, meet with property owners, and meet with Costco regarding Costco locating in Huntington Beach. 4 July 15,2009 Economic Development Dir. Hold at least one public hearing on the Downtown and Planning Dir. Specific Plan Update. 5 July 15,2009 Economic Development Dir., Attract another hotel operator/developer to the city. FUTURE OBJECTIVE Planning Director Complete the draft Beach/Edinger Corridor Specific By Plan/EIR and hold at least one public hearing. D THREE-YEAR GOAL: IMPROVE INTERNAL AND EXTERNAL COMMUNICATION WHEN WHO WHAT STATUS COMMENTS DONE ON REVISED TARGET 1 Feb. 23,2009 Information Services Dir. Implement the Surf City Pipeline web-based Citizen and the Public Information Information System. Officer 2 Within 30 days Economic Development Dir. Conduct at least one community workshop on affordable of action by the housing for current and"prospective owners and real City Council on estate agents. the Inclusionary Housing Ordinance 3 July 1,2009 HR Director Conduct a customer service workshop available to all city employees to keep quality customer service as a focus. 4 July 1,2009 City Administrator,working Conduct with all employees an anonymous Employee with the HR Director Satisfaction Survey,evaluate the results, and make recommendations for action. 5 July 15,2009 Mayor Host and conduct at least two town hall meetings in two and quarterly different locations in the city to provide information about thereafter the city and obtain feedback from the public. 6 July 15,2009 Dep.City Administrator Hall Conduct an Internal Development Services Survey and present the results to the Development Services Team. E S. .O.T■ ANALYSIS Strengths—Weaknesses-Opportunities-Threats STRENGTHS OF THE CITY OF HUNTINGTON BEACH Brainstormed List of Perceptions • We're a big town with a small town,lovely feel • City staff • Great libraries • Our geography O Dedicated city staff Y Entrepreneurial-we have a lot of home businesses Y Great city employees ® Open and responsive communication with our citizens • Diversity of our economy • Affluent demographics ® Great website • Great outreach opportunities • A number of ocean view hotels • Great unique city events • Distinctive downtown • Good shopping opportunities • Our City Treasurer makes good investments • An open organization trying to better itself constantly • Wide variety of park and recreation amenities,e.g.,equestrian,dog park,dog beach • Good fiscal management • Great cooperation between elected officials and city staff ® Sports facilities for youth • Great citizen participation • Pride in the community ® Greatest Police Dept.anywhere • 8-1/2 miles of beach 0 Our pier • Open space • One heIluva group of staff who make the city what it is ® Good budget • We have reserves • Expanding technology that enhances transparency • Quality of our city services 0 Knowledgeable staff • Wide range of land uses-a variety of commercial and residential opportunities O Tourism Y Wide variety of city events,e.g.,Surf City Nights on Tuesdays o We foster involvement in community events ® Class I Fire Dept. and Class I Water Dept. • Great legal advice ® We have the distinction of being a"Tree City USA" 0 We're environmentally aware Y Try to get youth involved early • Strong voluntary participation 3 P bN/ERNAL WEAKNESSES/CHALLENGES OF THE CITY OF HUNTINGTON BEACH /Brainstormed List of Perceptions • Lack of creativity • Lack of communication,e.g., between departments • Lack of support to aging public facilities • We're too much of a bedroom community • Lack of staffing levels to provide services • Conspiracy theorists • Poor public perception of city staff • Lack of long-term financial planning • No time to improve processes • Negative perception of the downtown • Mixed signals from the City Council • Competing priorities • Disjointed communication • Deferred maintenance on the infrastructure • Resistance to change • Ineffective engagement with the community • Lack of fiscal resources • Lack of quality retail shopping • Lack of funding for infrastructure • Slow city processes • Lack of financial resources for new and deferred projects • Poor response times • Lack of public transit • Many needs and inadequate funds • No reflection time • Lack of parking • Not correlating meet and confer with budget • Lack of city identity-we're more than surfers • Challenge of cleaning up the old gun range so we can convert the land to a park EXTERNAL FACTORS/TRENDS THAT WILL/MIGHT HAVE A POSITIVE IMPACT ON THE CITY OF HUNTINGTON BEACH IN THE NEXT THREE YEARS Brainstormed List of Perceptions • Available money for a gun range for the Police Dept. • An attractive community • Local elections in two years • Opening of Shore Break Hotel • Weather • Location • Wetlands restoration • Pacific City development project • Federal and state focus on.environmental projects • Federal"Go Green' initiative • Diversity of revenues • Development of the cultural center • Aging population • Continued involvement of volunteer groups • Federal Stimulus Program • As a coastal community,our situation will rebound more quickly than others 4 • 9-1/2 miles of coast • Developer interest in working here • Senior Center • Go Local • Getting funding for a new public library branch • The new president • New governor _ • Foreign investment • Greater availability of qualified city employee candidates • We're an entrepreneurial town • Water resources • Acquisition/Availability of grants • OCTA-Orange Co.Transit Authority • Renewal of Measure M(transit) • Partnering with Southern California Edison on green initiatives EXTERNAL FACTORS/TRENDS THAT WILL/MIGHT HAVE A NEGATIVE IMPACT ON THE CITY OF HUNTINGTON BEACH IN THE NEXT THREE YEARS Brainstormed List of Perceptions • State budget deficit • Lack of State budget approval • Drought • Lack of travel • Need for more support services • Unemployment • Nancy Pelosi • Weak retail sales • Unfunded mandates • New Council member(s) (election in 2 years) • Decrease in interest in local government • Unstable energy costs • Unrealistic expectations by the public • School district budget issues • Changing demographics • Increased need for senior services • Lack of affordable housing • Increased crime • Immigration problems • Lack of workforce housing • Mobile home park closures • State withholding grants and gas tax revenues • State not giving full reimbursement for city services • Lack of credit for homes and businesses • Drop in tourism • Taxation • Foreclosures/vacant homes • Store closures • Unhappy people sue the city more • Aging population • State and federal regulations • Increased pressure on public safety • PERS performance 5 • Natural disasters • Potential loss of open land • Increased healthcare costs • Closed school sites • Ever increasing problem of boomers having too much time on their hands • Reduced state and federal funding to cities • Problems with the Delta • County's lack of resources • Increased cost of maintenance of parks and infrastructure • Harder to get bonds due to the credit market - e IDENTIFY THREE.-YEAR GOALS Brainstormed list of potential goals from which the Three-Year Goals were developed • Maintain and enhance financial reserves • Maintain and enhance public safety • Develop friendlier staff services • Complete and implement Specific Plans • Engage employees in resolving agency issues • Develop a strong business environment • Enhance economic development • Implement our Integrated Infrastructure Management Plan • Develop the community as a tourist destination • Engage our community • Complete development of existing approved development projects • Enhance staff development • Develop,approve and implement a financing vehicle for public improvements • Improve traffic circulation and transportation • Preserve and enhance open space • Provide quality services to our citizens 6 STRATEGIC PLAN ELEMENTS Marilyn Snider,Strategic Planning Facilitator • Snider and Associates(510)531-2904 "SWOT" ANALYSIS Assess the organization s: -Internal Strengths -Internal Weaknesses External Opportunities -External Threats MISSIONIPURPOSE STATEMENT States WHY the organization exists and WHOM it serves VISION STATEMENT A vivid,descriptive image of the future—what the organization will BECOME CORE VALUES What the organization values,recognizes and rewards—strongly held beliefs that are freely chosen, publicly affirmed,and acted upon with consistency and repetition THREE YEAR GOALS WHAT the organization needs to.accomplish(consistent with the Mission and moving the organization towards its Vision) -usually limited to 4 or 5 key areas KEY PERFORMANCE MEASURES What success will look like upon achievement of the goal SIX MONTH STRATEGIC OBJECTIVES HOW the Goals will be addressed: By when,who is accountable to do what for each of the Goals FOLLOW-UP PROCESS Regular, timely monitoring of progress on the goals and objectives; includes setting new objectives every six months ©1995 Snider and Associates 7 RE a e AS .`ts � ? MEET � NN CLERK MAN L FLY Some Thoughts on Local Government During t�perilous times it would seem appropriate to reflect on the kinds of things that local government should be addressing to improve the quality of life for its citizens. Local government probably has more impact on the daily lives of its citizens than the State or Federal government. Thus one can argue that the solutions to improving the quality of life are more likely found in neighborhoods of Huntington Beach than in the highly partisan halls of Sacramento and Washington. Certainly the permissive financial policies and lack of oversight by State and Federal governments have been in substantial measure the cause of our current debacle. I'm not sure that relying;on them to solve our problems is realistic. I believe local government needs to roll up its sleeves and deploy its resources in the most effective manner possible. This, together with developing goals, objectives and strategies and measurable criteria of success can go a.long way to improving the quality of life in Huntington Beach. In my many years of public service it appears that there are six basic needs which impact the community: 1. Sustenance--(Food and Water) 2. Shelter-- Housing) 3. Education and training 4. Jobs 5. Safety 6. Health and the Environment Developing strategies which focus on these needs seem most likely to enhance the quality of life of the citizens;I recognize these are complete issues but let me give you some preliminary thoughts on each of these categories: Sustenance Make sure that those in need of food are aware of and have access to existing public and private sources of low cost or no cost food Review and update if_necessary water delivery, storage and,distribution systems ® Review the opportunities for desalinization taking into account the environmental concerns. Shelter Update affordable housing program as you are doing :Provide information to those seeking affordable housing * Make certain as new housing cones on stream there is an affordable housing dimension to the project 0 Follow state mandated affordable housing criteria Education and Training 0 Meet regularly with the six school districts and explore mutual interest in enhancing educational opportunities for all young people 0 Continue to pool land resource for recreational programs 0 Create an awareness in availability of both public and private job training resources Jobs a Encourage employers to locate in Huntington Beach and provide assistance if necessary © Promulgate information about both public and private placement organizations Safety a Recognize that crime is a sociological phenomenon and work with the police to address its causes. For example: give young people recreational, cultural and educational opportunities to occupy their time. Tendencies toward criminal behavior often occur at an early age. Addressing issues early will reduce crime 0 Make certain paramedic services are available throughout the city within five minutes of a 911 call 0 Review the Opticom system to make sure that emergency vehicles can traverse the major intersections quickly and safely. 0 Make the public more aware of resources which address child, spousal, and elderly abuse 0 Ascertain how local health care providers can improve their services 0 Develop a program which is oriented toward substantially reducing reliance on fossil fuels. For example: Furnish information to the public on programs for installation of solar panels 0 Encourage the use electric cars and natural gas burning vehicles 0 Ease traffic congestion and thus idle time at signals through appropriate use of"loops." Improve the condition computer controlled signalization of busy intersections. De-bottleneck intersections with improved traffic marking or unproved left and right traffic pockets 0 Work with Orange County Transportation Authority to improve public transportation © Develop information for the public which includes a time line for paving streets Health and Environment 0 Encourage all local hospitals to provide appropriate emergency medical care e Encourage the use electric cars and natural gas burning vehicles 0 Ease traffic congestion and thus idle time at signals through appropriate use of"loops." Improve the computer controlled signalization.of busy intersections. De-bottleneck intersections with improved traffic marking or improved left and right traffic pockets ® Work with Orange County Transportation Authority to improve public transportation Conclusion These are but a few random thoughts. I am sure there are many other concepts which the above ideas will stimulate. One of the difficulties is getting the information to the public. It might be worthwhile to institute a volunteer staffed informational and referral system so citizens can become informed of existing resources available. It might be helpful to have a citizen group assembled to help brainstorm some issues which could assist the council in its deliberation. What comes to mind is a broadly based group like the Centennial Committee. This group has done an excellent job in planning the Centennial year. Perhaps they would consider continuing to serve to help address critical city issues. Finally there is always the issue of money. I know the city is working hard to increase income through sales, transient occupancy fees and other revenue sources_ Perhaps a review of financial resources and their redeployment to meet the city needs more effectively should occur. There is also the issue of increased emphasis on grant writing and application for both public and private funds. The possibility of forming a private community foundation as has been done in many cities would be useful to tap into private financial resources If this brief essay helps stimulate thinking to improve the quality of life in Huntington Beach it will have served its purpose. Knowing the folks of Huntington Beach, I think they would be enthusiastic about assisting the city council and city staff in their endeavors whatever they may be. Respectfully, All�—e Ralph Bauer FOR PUBLIC RECORD-HAND DELIVERED TO CITY CLERK 0E HUNTINGTON BEACH,JANUARY 30,2009 9921 Big Sur Drive Huntington Beach,CA 92646-5311 Phone(714)968-4815 Email: TeddiAlves@aol.com January 30, 2009 Mayor and Members of The Huntington Beach City Council 2000 Main Street Huntington Beach, CA 92648 SUBJECT: Denial of Approval of Subordination of HUD CDBG HSG REHAB LN, Originated November 2001; Fixed Rate, due and payable at death or sale of property at above address Dear Mayor and Members of The Huntington Beach City Council: Since December 2,you have totally ignored numerous emails on this subject with no reply whatever to date,the"policy"without citation of effective date of what document/authority attached. At the time,the Loan to Value of this property is 10%/90%,representing an equity in the range of$700,000 according to recent sales amid this downturn, and such refusal is(1) unlawful, (2)capricious, (3)contrasted with generally accepted terms and conditions of real estate finance and lending practices, and(4)legally actionable. An online search turned up an agreement of The City of Alhambra with regard to Affordable Housing purchases under authority of Stanley Smalewitz, Housing Manager, and I suspect with similar terminology and conditions contentious in this city over past years where particular purchasers of affordable housing in this City of Huntington Beach contend was imposed upon them after the fact. It appears to me poorly constructed' as the"policy" newly derived after the closing of my loan referenced above and under presumed jurisdiction of Smalewitz as Economic Director of Huntington Beach, background in Inglewood and Riverside as well, hardly comparable locations or demographics with this city; the office of The City Clerk has established his hiring as September 19, 2005, a consent calendar item and practice that should be discontinued in the future, particularly given importance of applicable experience, and prominent here is pronounced intention to pursue rehabilitation and resales of foreclosures as"projects"of this city given the presenting level of performance. I am demanding approval of subordination of the HUD Loan on reasonable terms and conditions ' If to the City: Stanley Smalewitz Housing Manager City of Alhambra 111 South First Street Alhambra, CA 91801 http:!/www.cityofalhambra.org/government/development services/housing_assistance/downloads/City_Lo anAgree.pdf RECOF ENEt� RE 0 0, E Rs CITY CLE OFFIC JOAN L,F: C9TY CLERK FOR PUBLIC RECORD-HAND DELIVERED TO CBIV CLERK OF HIJNl INGTON BEACH,JANUARY 30,2009 consistent with generally accepted practices and latitude extended by HUD in management/administration of the HUD CDBG Loans immediately. The City of Huntington Beach has publicly acknowledged the stress and financial burdens and hardships imposed on good faith purchasers of affordable housing in this city over years forcing those impacted to retain attorneys and litigate fairness in 20062; and their issues are still pending as of this date calling to question civil and criminal liability of this city for management hires and those secured positions responsible for this dereliction of professional and responsible performance representing that reasonable expectation of residents of this city far superior to the agendas of PUBLIC EMPLOYEE UNIONS seemingly having purchased that control. Given the debacle of"redevelopment"of the late 80's,the departure from the General Plan and proscribed aesthetic protocol of Greek/Mediterranean architecture,that constructed represents some kind of bastard, instead of the demonstrated [and continued] promise of that which would have been provided by Bryant Morris, developer of Shoreline Village in Long Beach and Seaport in San Diego. And now millions of dollars are at risk under the same stewardship,the current Mayor, Keith Bohr,having been on staff of the Redevelopment Agency of The City at that time, brought in from Chicago, and now The City announces it will scrap the required architecture they just ignored to our gloom and doom the first time? The idea of a proposed"boutique" hotel and a"Johnny Rockets"in this city on the Golden Coast without a"beach theme"is just absurd and reflects a total void of sophisticated appreciation of development design appropriate for our city by comparison and contrast with all neighboring venues of Long Beach, Seal Beach, Sunset Beach,even Costa Mesa's Triangle Square, as well as Newport and Laguna Beach, and Dana Point. Main St as developed represents"the street nowhere!," twenty years of a economic sink hole. 2 Tuesday,July 11, 2006 Huntington Beach homeowners sue over the resale restrictions on their below- market homes By ANDREW GALVIN The Orange County Register hitp://www.ocregister.com/articles/affordable- to-whom-1208806 "Only recently did the owners find out that under city rules,the amount they can charge for their homes is determined by a formula that can cause prices to fall as interest rate rise, the suit says. . They claim the city didn't publish the resale price formula until 2004,years after the homes were initially sold. 'Friday, January 23, 2009 Surf City revises controversial affordable housing program Several changes to program are related to lawsuits and complaints against the city. By ANNIE BURRIS The Orange County Register The city's reconsideration of the program is not a direct result of the lawsuits,but has been the topic of discussion among city officials for several years, City Attorney Jennifer McGrath said. The city has about 300 homes that fall under the affordable housing program and about 2,200 apartments for the affordable rental program,city officials said. The city is currently involved in lawsuits with residents from two Huntington Beach affordable housing complexes—Cape Ann and Brisas Del Mar. The lawsuits involve several of the issues in the new plan. 2 FOR PUBLIC RECORD-HAND DELIVERED TO 06IY CLERK OF HIDNTINGTON BEACH,JANUARY 30,2009 THIS EFFORT TO RIP OFF RESIDENTS IS ABOUT CONSISTENCY OF INCOMPETENCE IN FAILED OF MANAGEMENT OF ECONOMIC AND FINANCIAL PLANNING,against background of corruption. Evidence abounds. Those convicted. Whether the absurd racket of"Proactive Code Enforcement"by"canvassers," citations deliberately constructing unrealistic demands/timeframes for completion,conditioning fines compounding and as liens on family homes; or restrictions on ability to take CASH OUT by rersnance at now favorable rate and terms for that Protection ofRESERVES ONIL ND for required maintenance "TO CODE,"/"Prior violation"Peeling Paint on trim;Proiect in Placel, a logical progression in the persistent mentality of city "management;"inclusive of the HBPD consistently amok, a Chief whose first act was to attempt to quash"free speech,""professional performance"demonstrated with fifteen bullets pumped into the petite frame of a teenage girl. My health does not portend early death,the HUD Loan FIXED/LIFETIME, the existing first FIXED/30 YRS will be refinanced accordingly without compromise of security of the mortgage(s); this "complexity"requires but minimal brain cells for comprehension of generally accepted underwriting standards,lender requirements that loan approval is subject to BOTH(1)property and borrower qualification,and (2)approval the city of terms and conditions to allow subordination of the silent second HUD loan,. Further, more prescient is failure of The Council to overhaul management hires with direct responsibility for circumstances pitting residents against arrogant incompetence of"public employees" secured by unions. My views are supported by graduate degree, MBA, CA Real Estate Broker License, experience in development, land acquisition and feasibility studies [that did not support hotels in the first"do", instead Pierside Village], Commercial and Mortgage Banking,Real Estate Brokerage. Also a lifetime of social, community and political involvement. "Downtown"is vacant, Main Street a virtual tunnel of fumes from passing traffic, without ocean view, lacking themed restaurants; "redevelopment' now proposes more fast food, some awnings, and another"boutique"hotel; an indication of required sophistication and awareness of a"director of economic development," conspicuous in relevance of REVENUES and LOCAL SPENDING in this economic tsunami. Worse, seasoning of thirty-six years as a resident/homeowner, residents battled a year Iona effort of the city 1Bohri to mandate mutilation of family pets, now determined disregard for sanctity of homes across this city unfolds,that very personal to me as others forced to public appeal for basic integrity and minimal decency, deliberate refusal of timely response of The City Council that forced relief by costly litigation, senior citizens on fixed incomes, myself the widow of an officer of the Regular United States Air Force,rank of Major, already deprived of interest rate advantage in this economy,home threatened?. Very Sincerely, _--- Te Attachment: Copy of"Subordination Policy"of The City of Huntington Beach 3 F F CITY OF DUNTINGTON BEACH DEPARTMENT OF ECONOMIC DEVELOPMENT eB DOUSING REHABILITATION LOAN PROGRAM LOAN SUBORDINATION POLICY AND APPLICATION DATE: IF VIA FACSIMILE: 3 PAGES ATTN: FAX#: PHONE#: TO: Borrowers and Lenders The City of Huntington Beach will consider subordination of City of Huntington Beach Housing Rehabilitation Loan Program loans under the following circumstances: 1. Borrower will be refinancing their first mortgage at a reduced interest rate that results in a lower monthly mortgage payment. 2. Borrower will not be withdrawing or using any equity ("pulling out cash") for any reason. However, any fees associated with the refinance may be included in the new first mortgage. The City will not approve a subordination that involves the following: • Withdrawal of equity for any reason • Subordination to a loan involving negative amortization • Subordination to a variable rate mortgage loan • Change of ownership, including adding new owners or co-signer(s) onto the loan or title. • The combined total of the new first mortgage loan and City's existing second mortgage loan exceeds the appraised value of the subject borrower's property. PLEASE NOTE: The City's loan will become immediately due and payable if the borrower at any time: (1)takes out any other loan against the property in lieu of subordinating the City's loan, OR (2) uses refinance proceeds to repay revolving or other debt. The following items are required by the City of Huntington Beach at the time that a subordination request submitted: 1. Fee: A$250 service charge for processing of the request. Payment should be made to the City of Huntington Beach. Payment of this fee may be made through escrow. 2. Required Documentation (copies are acceptable): • Borrower's loan application for the new first mortgage loan • Credit Report • Estimated Closing Statement • Preliminary Title Report • Escrow instructions • Truth in Lending Statement (Regulation Z) • Appraisal The following items will be required at the close of escrow: 1. Copy of HUD I Settlement Statement. 2. Lender's policy of title insurance naming either: (1)the Redevelopment Agency of the City of Huntington Beach OR (2)the City of Huntington Beach, a municipal corporation, as additional insured as shown on the title report, depending upon the vesting of the City's existing deed of trust. 3. Proof of hazard insurance naming either: (1)the Redevelopment Agency of the City of Huntington Beach OR(2)the City of Huntington Beach, a municipal corporation, as additional insured as shown on the title report, depending upon the vesting of the City's existing deed of trust. Please forward the required items to the following. City of Huntington Beach Economic Development Dept. 2000 Main Street Huntington Beach, CA 92648 Processing Time (Please allow sufficient time for loan closing to accommodate this process) ® Subordination requests will be responded to within 10 days after they are received by the Economic Development Department. o A Subordination Agreement will be available within 30 days following the receipt of the subordination request provided all City requirements have been satisfied. e A subordination request that does not meet the City's requirements will be denied. DIRE TO VOLUME, THE ABOVE INFORMATION CANNOT BE ACCEPTED BY FAX. However, other materials of less volume can be faxed to Terri Icing at(714)375-6087. If you have any questions, please call Terri Icing at(714) 960-8831.