HomeMy WebLinkAboutAGENDA REPORT 2011 1207 CC REG ITEM 10CTO:
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BACKGROUND
ITEM
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MOORPARK CITY COUNCIL -
AGENDA REPORT -
Honorable City Council
David C. Moe II, Redevelopment Manager `Y
November 23, 2011 (CC Meeting of 1217/11)
Consider Revising Financial Contribution to the Ventura County
Housing Trust Fund
On July 6, 2011, the City Council considered a request from the Ventura County
Housing Trust Fund ( "VCHTF ") to provide a $150,000.00 funding commitment over the
next five years ($30,000.00 per year for five years) to be used as match to secure funds
from the Housing and Emergency Shelter Trust Fund Act of 2006 ( "HESTF ") dedicated
to the creation or preservation of affordable housing. Given the limited sources of
funding that can be utilized as matching funds and the current economy, the City
Council committed to a $50,000.00 funding contribution over the next five years
($10,000.00 per year) funded from the City's Affordable Housing Fund.
DISCUSSION
The VCHTF met with the State of California Housing and Community Development
Department ( "HCD ") for a page by page review of its HESTF application. HCD has
raised a few issues that conflict with the planned operation of the VCHTF and the City
Council's direction on July 6, 2011.
The first issue is the timing of the disbursement of the $50,000.00 matching funds to the
VCHTF. HCD clarified that it is not necessary to have the matching funds be spread
over five years. In fact, HCD has further stipulated that the VCHTF must disburse all of
the matching funds within 36 months from signing the HCD agreements. The VCHTF
would like to have Moorpark disburse the $50,000.00 in one lump sum, or front loaded
to the extent possible, with the remaining spread over a couple of years. Staff is
recommending disbursing $25,000.00 during the first year of their HCD agreement and
another $25,000.00 during the second year.
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Honorable City Council
December 7, 2011
Page 2
The second issue is related to program implementation. HCD has clarified that funding
coming from HCD cannot be used for program implementation. However, up to 15% of
the matching funds raised from other sources can be used for implementation. Staff
recognizes there is a cost associated with delivering services, but is reluctant to have
15% of Moorpark's contribution be used for administrative costs. Staff is recommending
no more than 10% ($5,000.00) of Moorpark's contribution be used solely for direct staff
time to implement VCHTF activities.
The third issue is the proposed housing production sharing model. The VCHTF has
been working to develop a housing production sharing model to be used as an incentive
for jurisdictions to participate financially with the VCHTF. Although the VCHTF received
preliminary support from HCD staff and the former HCD Director, current HCD
leadership has recently informed VCHTF that the regulations will not allow housing
production sharing. The VCHTF did not discuss their plan to develop a housing
production sharing model with City staff. Therefore, this issue does not affect
Moorpark's contribution to the VCHTF.
FISCAL IMPACT
If the VCHTF's application for funding is approved, staff will return to the City Council for
an allocation at that time or include an appropriation in FY 2012/13 proposed budget.
Staff is recommending utilizing City Affordable Housing Funds to fund this $50,000.00
commitment payable in two annual payments.
STAFF RECOMMENDATION
Approve disbursement of the City's $50,000.00 contribution to the VCHTF in two annual
payments and allow up to 10% of the contribution to be utilized solely for direct staff
time to implement VCHTF activities.
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