HomeMy WebLinkAboutAGENDA REPORT 2004 0901 CC REG ITEM 10RITEM 10. R .
CITY OF MOORPARK, CALIFORNIA
City Council Meeting
Of 9 -/ - 0300 Al
ACTION:
MOORPARK CITY COUNCIL Gl __
AGENDA REPORT a00 o�t03 P
BY:
To: Honorable City Council
From: Nancy Burns, Senior Management Analyst
Date: August 25, 2004 (CC Meeting of September 1, 2004)
Subject: Consider Resolution Authorizing Application for
CalHome Funds for Affordable Housing Development and
Authorizing City Manager to Execute All Documents
Required to Participate in Program
BACKGROUND
The California Department of Housing and Community Development
(HCD) is accepting applications for development loans for
homeownership units under the CalHome Program. Approximately
$30,000,000 is available for this purpose, First Time Home Buyer
down payment assistance and owner - occupied housing
rehabilitation.
DISCUSSION
Funds may be used for acquisition of real property, to pay
building permits and state and local fees, pre- development
costs, onsite improvements, environmental and engineering
studies, etc. Six percent interest (6 %) on the loan is
forgiven, to the extent that the number of low income households
proposed to be assisted are, in fact, assisted by the project,
within three (3) years.
Funds for development loans are to be drawn down for eligible
acquisition and pre- development costs, and then this money is to
be converted to deferred payment mortgage assistance loans to
eligible low income buyers within the assisted project (at 0 -3%
interest, as determined by the City). When the loans are
repaid, the funds return to a City- established housing reuse
000267
Honorable City Council
Date 08/25/04
Page 2
account. Staff recommends requesting $500,000, the maximum
amount for this purpose.
RECOMMENDATION
Approve Resolution No. 2004-
Attachment: Resolution No. 2004-
0& -0142!f ;8
RESOLUTION NO. 2004-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF MOORPARK, CALIFORNIA, AUTHORIZING
SUBMITTAL OF AN APPLICATION TO THE STATE OF
CALIFORNIA DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT (HCD) FOR FUNDING
UNDER THE CALHOME PROGRAM AND EXECUTION OF
THE STANDARD AGREEMENT, ANY AMENDMENTS
THERETO, AND ALL OTHER DOCUMENTS REQUIRED BY
HCD FOR PARTICIPATION
WHEREAS, the City of Moorpark, a municipal corporation,
wishes to apply for and receive an allocation of funds through
the CalHome Program; and
WHEREAS, the California Department of Housing and Community
Development (HCD) has issued a Notice of Funding Availability
(NOFA) for the CalHome program established by Chapter 84,
Statutes of 2000 (SB 1656 Alarcon), and codified in Chapter 6
(commencing with Section 59650) of Part 2 of Division 31 of the
Health and Safety Code (the `statute "). Pursuant to the
statute, HCD is authorized to approve funding allocations
utilizing monies made available by the State Legislature to the
CalHome program, subject to the terms and conditions of the
statute and the CalHome Program Regulations adopted by HCD on
August 15, 2003; and
WHEREAS, the City of Moorpark wishes to submit an
application to obtain from HCD an allocation of CalHome funds in
the amount of $500,000.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. In response to the Notice of Funding
Availability issued on July 15, 2004, the City of Moorpark shall
submit to HCD an application to participate in the CalHome
Program, requesting a funding allocation for any of the
following expenses related to the purchase of real property for
the purpose of developing said property with single family
housing upon the site, including certain units to be designated
as affordable housing for low income households: acquisition
costs; building permits and pre- development costs; onsite
improvements associated with said development; carrying costs
during the construction process; escrow, title insurance,
recording and other related expenses; costs for items to assure
Resolution No. 2004 -
Page 2
the completion of construction, such as contractor bond
premiums; environmental and engineering studies; and the payoff
of bridge loan financing for site acquisition, if necessary, in
the amount of $500,000.
SECTION 2. If the application for funding is approved, the
City of Moorpark hereby agrees to use the CalHome funds for
eligible activities in the manner presented in the application
as approved by HCD and in accordance with program regulations
herein referenced.
SECTION 3. The City of Moorpark authorizes the City
Manager to execute in the name of the City of Moorpark, the
application, the Standard Agreement, and all documents required
by HCD for participation in the CalHome Program, and any
amendments thereto.
SECTION 4. 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 1st day of September, 2004.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk