HomeMy WebLinkAboutAGENDA REPORT 2003 1015 CC REG ITEM 10Gof
MOORPARK CITY COUNCIL
AGENDA REPORT
ITEM 10 .C7.
On
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To: Honorable City Council
From: Nancy Burns, Senior Management Analyst op--t
Date: October 7, 2003 (CC Mtg. of October 15, 2003)
Subject: Consider Allowing Second CalHome Mobilehome Loan to
Qualified Borrowers, to a Maximum Funding per
Household of $20,000, and Authorizing City Housing
Funds for Loan Costs Not Paid by Borrowers
BACKGROUND
On June 28, 2001, the City was awarded $420,000 by the State
Department of Housing and Community Development (HCD) for
mobilehome rehabilitation loans. Seven (7) loans have been
funded to date, with the average loan amount being $10,968. The
City receives a service delivery fee of five percent (5%) of
each loan funded.
DISCUSSION
Maximum loan amounts have always been $20,000 under this
program, but HCD initially limited the average loan amount
funded to $10,000. Due to this requirement, borrowers were not
always able to receive a large enough loan through this program
to make all needed repairs. Several residents who obtained the
initial CalHome loans have recently requested additional funds,
to enable them to make additional repairs.
HCD has authorized second loans to borrowers, for the reasons
stated above. Borrowers currently pay an average of $691 in
fees such as escrow costs, credit report, recording fees,
termite inspection, construction management, and appraisal. HCD
confirmed that these are eligible costs again for the additional
funds being provided.
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Honorable City Council
Date 10/07/03
Page 2
Redevelopment Agency Housing Setaside Funds have been used for
loan costs not covered by borrowers. Recently, staff determined
that the City Housing Fund is a more appropriate funding source,
as Villa del Arroyo Mobilehome Park is outside the Redevelopment
Project area and Redevelopment law has become more stringent
regarding eligible uses of Housing Setaside funds.
The attached resolution and line item transfer will re- allocate
forty thousand dollars ($40,000) from City Housing
Rehabilitation Loans as follows: $23,259.16 to City Housing
Rehabilitation Loan Costs and $16,740.84 to the Housing Setaside
Fund, the amount expended from that fund to date.
The City's share of the cost of each loan is approximately
thirteen hundred dollars ($1,300). This is partially offset by
the service delivery fee the City receives, which is five
percent (5 %) of each loan.
STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED)
1. Authorize the provision of a second loan to borrowers who
previously obtained a CalHome loan to make repairs to their
mobilehome, such loan and the original loan to be subject
to a combined maximum loan amount of $20,000, and subject
to the same costs, terms and eligibility requirements as
those in effect at this time.
2. Adopt Resolution No. 2003 - approving a line item
transfer of a total of $40,000 from City Housing
Rehabilitation Loans to City Housing Rehabilitation Loan
Costs ($23,259.16), and the Housing Setaside Fund
($16,740.84).
i ti 1 •.
RESOLUTION NO. 2003-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING THE FY 2003/2004
BUDGET BY REALLOCATING $40,000 FROM CITY
REHABILITATION LOANS TO CITY REHABILITATION LOAN
COSTS ($23,259.16) AND REIMBURSING $16,740.84 TO
HOUSING SETASIDE FUND
WHEREAS, on June 18, 2003, the City Council adopted the
budget for Fiscal Year 2003/2004; and
WHEREAS, at a duly noticed City Council meeting on October
15, 2003, a staff report was presented to said Council,
requesting a budget amendment transferring $23,259.16 from the
City Housing Fund Rehabilitation Loans to Rehabilitation Loan
Costs and $16,740.84 from City Housing Fund Rehabilitation Loans
to Housing Setaside Funds; and
WHEREAS, Exhibit "A" hereof describes said budget amendment
and its resultant impacts to the budget line item(s).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. A budget amendment transferring $23,259.16
from the City Housing Fund Rehabilitation Loans to
Rehabilitation Loan Costs and $16,740.84 from City Housing Fund
Rehabilitation Loans to Housing Setaside Funds as more
particularly described in Exhibit "A" attached hereto is hereby
approved.
SECTION 2. The City Clerk shall certify to the adoption
of this resolution and shall cause a certified resolution to be
filed in the book of original Resolutions.
PASSED AND ADOPTED this 15th day of October, 2003.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
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EXHIBIT A
BUDGET AMENDMENT FOR
CITY HOUSING FUND
FY 2003 -04
DISTRIBUTION OF APPROPRIATION TO EXPENSE ACCOUNTS:
Account Number
Current Budget
Revision
Revision
Amended Budget
2201 - 2430 - 2004 -9820
$ -
$
16,740.84
$
16,740.84
2201 - 2430 - 2004 -9282
$ 100,000.00
$
(23,259.16)
$
76,740.84
2201 - 2430 - 0000 -9283
$ 800.00
$
23,259.16
$
24,059.16
Total
$ 100,800.00
1 $
16,740.84
$
117,540.84
DISTRIBUTION OF APPROPRIATION TO REVENUE ACCOUNTS:
Account Number
Current Budget
Revision
Amended Budget
2901 -3720
$ -
$ 16,740.84
$ 16,740.84
Total
$ -
$ 16,740.84
$ 16,740.84
Approved as to Form: 4� —
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