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HomeMy WebLinkAboutAGENDA REPORT 1992 0205 CC REG ITEM 11Et • ITEM � � • E MOORPARK 799 Moorpark Avenue Moorpark. Californi-a 93021 TO: Honorable City Council -` JL FROM: Richard Hare, Deputy City Manager C,,"" DATE: January 29, 1992 SUBJECT: Consider Housing Assistance Program Background (805) 529 -6864 Y' ccuncu McB ng v` r 1 99.�? AC71oN. GG ey ,�. California law does not allow an employer to require and employee to live within the boundaries of the City. This restriction can make it difficult to develop appropriate response times for employees who have emergency management or after hours response responsibilities and to encourage employees to live and shop in the City and participate in the community based organizations that are an important aspect of Moorpark's quality of life. Additionally, the housing market in southern California, especially Ventura County, makes relocation of new employees to this area extremely difficult. some cities have responded to this by developing programs which assist employees in relocating to the City. They thereby encourage home ownership, rapid response to after hours emergencies, and attempt to encourage longer retention of employees. This program has been reviewed with Simi Valley Bank. It was pointed out that a program of this type is consistent with the Community Reinvestment Act and the bank has expressed an interest in participating in the program. Each employee's circumstances and the needs of the City regarding . the employee's emergency response or other services will vary. Using the general model of the affordable housin g previously used by the City with the cooperation OfrSimi�Valley Bank and Griffin Homes, staff presented the following program to the Budget & Finance Committee. Housing Assistance Program 1. Thirty (30) year amortization 2. One 1 year adjustable rate or fixed rate 3. Minimum down payment of 10% 4• City may guarantee the 1st Trust Deed in lieu of PMI 5. City may carry a 2nd Trust Deed PAUL W. LAWRASON JR. Mayor JOHN E. WOZNIAK SCOTT MONTGOMERY c = cRNARC�O M = REZ ROY - y Mayor Pro Tern Counciimemter Courn;.ilme^cv_r E. 1,._EY JR. c--f- J 6. City participation not to exceed 75,000 per participant 7. 2nd Trust Deed to be due in five (5) years or within 90 days after separation whichever occurs first 8. 2nd Trust Deed rate to be a fixed rate based upon the previous sixty (60) month average of the Local Agency Investment Fund rate immediately preceding opening escrow 9. Employee to qualify under normal FNMA guidelines as to income and credit 10. Qualified employee to have emergency,after hours, supervisory, or managerial responsibilities whereby proximity to the City is of benefit to the City 11. To be limited to one employee in a household 12. City Manager authorized to execute the elements of the program with a purchase price of the home to not exceed 125% of the then county median value. 13. Aggregate limit of City participation for all eligible participants is $300,000.00 14. Detemination of eligibility for the program based upon date of employee written statement of interest 15. Program subject to change at any time by Council action 16. The source of funds would be undesignated general fund reserves 17. The residence must remain the employee's primary residence. These program parameters would be used to fit the circumstances in cases where voluntary relocation could be arranged and assistance from the City would provide an incentive to live within the City limits. The following positions would qualify for the program: Assistant to the City Manager, City Clerk, Community Development Director, Community Services Director, Deputy City Manager, and Public Works Director. This program would be a valuable recruitment tool and in some cases it could be a means for existing employees to move into the City. The financial situation of each eligible employee would have to be evaluated to determine need and benefit to the City. The City would use the same cash reserve for this program which otherwise would be invested in the Local Agency Investment Fund or a similar investment. In the event of default in cases where M � the City is guarantor, the City would temporarily acquire the property for resale. The property would have to be insured at full replacement value throughout the period of the loan. Recommendation Staff recommends approval of the program parameters as outlined and direction for the City Manager to implement the program as stated. The City Attorney would approve the documents as to form and may advise additional restrictions dependent upon the circumstances of the agreement.