HomeMy WebLinkAboutAGENDA REPORT 1992 1021 CC REG ITEM 08OITEM 8. D.
MOORPAIRKARK,
79 9 Moorpark Avenue Moorpark, California 93021
ey
TO: The Honorable City Council
FROM. Donald P. Reynolds Jr., Administrative Services Manager �jJ--
DATE. October 15, 1992, (CC Mtg. of October 21, 1992)
SUBJECT: Consider Extension of the Mobile Home Rent Subsidy
Program
Summary
The following report will
summarize the history y of the City's
mobile home rent subsidy g ( "Background and Program
overview"), and pursuant to the direction received by staff from
the Budget and Finance Committee, (Committee), recommend its
extension.
Background
In December, 19891 the City and the owners of Villa Del Arroyo
Mobile Home Park (Park) reached a settlement agreement whereby the
City would set aside $10,000 and offer rent subsidies to qualified
tenants between December 1989, and November, 1992. Page 4 of the
settlement agreement states that tenants qualify based upon the
following criteria:
"(a) At least 50% of the combined income of all persons
residing in the mobile home is used for space rent; and
(b) The combined income of all persons residing in the mobile
home does not exceed 80% of the Ventura County median
income for the size of the household, ( the median income
for a family of 4 is $48,400, and 80% of this is $38,600 -
source; Department of Housing and Community Development
Division of Policy Development New Income Limits, May
1992); and
(c) No person residing in the mobile home receive assistance
under Section 8 or any similar federal, state or local
program."
Rental assistance is based on the rent amount paid before December
1989, and the newly increased rent amounts charged after this date.
Approved rent increases have been implemented by the owner of the
Park each December, and the City subsidy has been adjusted each
year to reflect the new rent amount. Each January, for those who
have a fixed income, (i.e., social security or disability
PAUL W. LAWRASON JR.
Mayor
JOHN E. WOZNIAK
SCOTT MONTGOMERY
BERNARDO M PEREZ
ROY E. TALLEY JR.
Mayor Pro Tem
Councilmember
Councilmember
Councilmember
benefits), the subsidy amount is reduced by the cost of living
adjustment assigned by the governing agency, (if one is provided).
To date, no rent increases have been applied for by the owners
above the annual cost of living index figure, except for the
original 1989 increase. Therefore, for those receiving social
security or disability benefits, the net increase is essentially
the difference between the owner's increase and the cost of living
adjustment applied by federal or state government (approximately 1%
1992).
Pursuant to the terms of the settlement agreement, the last rent
subsidy payment from the City is scheduled to be approved at the
October 21, 1992, Council meeting (which is applicable to the month
of November).
Program Overview
Two households originally applied for the subsidy and were joined
by a third family in July, 1990. The City assisted the same three
families from July 1990, to the present date, providing a total of
between $1,250 and 1,450 to each household.
By helping these three families, the City used less then half of
the settlement agreements's set aside of $10,000, leaving a balance
of $5,975.60. This does not include staff time establishing the
program and conducting quarterly status reviews of each recipient.
Discussion
On Wednesday, October 14, 1992, staff met with the Budget and
Finance Committee, (Mayor Lawrason and Councilmember Montgomery) to
discuss the concept of extending this program.
It was presented to the Committee that if the program is continued
without change, that the three current recipients would use
approximately $1,070 between November and June 30, 1992. To
operate the program unchanged for fiscal year 1993/94 would cost
approximately $1,615. Qualified new recipients may be recieving
between $450 and $550 per household per year.
If the program is to be considered for continuation, it is
reasonable to apply a cap to the amount of funds used by the City.
Since there is already a $5,975 balance remaining from the original
stipulation of the settlement agreement, staff and the Committee
recommend this amount to be established as a cap.
The balance, if any, of the original $10,000 that remain at the end
of subsequent fiscal years can be considered for a continuance
allocation by the Council.
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10/15/92 2
Policy Guidelines
Cap
The Committee recommends that a cap be placed on the program for a
total cost to equal the original $10,000 set aside. Not knowing
how many applicants may apply, it is recommended that the entire
balance of $5,975 be appropriated for this purpose. If a balance
of funds occurs, it would be reconsidered for part of the next
year's budget.
Original Recipients
There is no change proposed to the current program for the original
recipients, assuming that they remain eligible. Staff will attempt
to avoid a reduction in benefits while staying within the cap.
New Applicants
Only residents of Villa Del Arroyo Mobile Home Park would be
eligible. Applicants have to be living in the Park as of the
termination date of the settlement agreement subsidy stipulation;
November 30, 1992.
As currently applies, there would be no retroactive reimbursements.
The Friday following the first City Council meeting of each month
is the last day of the month that a new application can be approved
for the upcoming month's rent. Completed and approved applications
received after this day would not be initiated until the following
month.
Recommendation
That the City Council extend the Mobile Home Rent Subsidy program
to the residents of Villa Del Arroyo Mobile Home Park as follows:
1) Appropriate $5,975 for the General Fund Reserve to line
item 001.04.117.641 for additional mobile home rent
subsidies, and;
2) Authorize staff to proceed with the implementation of the
program pursuant to the existing guidelines, and;
3) That the City receives new applications only from Villa
Del Arroyo Mobile Home Park residents residing at the
park on or before 11/30/92, and;
4 ) To direct the Budget and Finance Committee to revisit the
program on an as needed basis, (determined by the
anticipated balances available), and if needed while
developing appropriations for the 1993/94 Budget.
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