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Home My WebLink AboutAGENDA REPORT 1994 0427 CC ADJ ITEM 11ETO: FROM: DATE: City of Moorpark Agenda Report The Honorable City Council Richard Hare, Deputy City Steven G. Hayes, Economic A IT 7 Manager g �- DevelopmeX Manager April 14, 1994 (CC Mtg. 4/20/94) SUBJECT: Consider Funding and Criteria for Low and Moderate Income Housing Rehabilitation Programs Discussion In accordance with Section 33334.2 of the California Community Redevelopment Law (CCRL) , "Not less than 20 percent of all taxes which are allocated to the Agency pursuant to Section 33670 shall be used by the Agency for the purpose of increasing, improving, and preserving the community's supply of low and moderate income housing available at affordable housing costs ". This 20 percent housing set aside requirement applies to all Agency Bond Proceeds. In response to the requirements of the CCRL, City /Agency staff recommend that a housing program be established for the City of Moorpark. Available Funds The first step in the establishment of such a program is to identify the funds available. At present, the total combined funds for housing programs is approximately $673,000, (MRA $500,000, City Housing Fund $150,000, and CDBG $23,000). The attached (Table 1) spreadsheet shows MRA Funds, (Tax Increment Revenue and Bond Proceeds) received to date, and projected revenues at 20 percent to the year 2000. Housing Programs In addition to the construction of new affordable housing, there are other housing rehabilitation programs which can be made available. Staff reviewed these programs along with the available funding with the Budget and Finance Committee on April 14, 1994. The Committee outlined some guidelines for both types of programs which are presented for the Council's consideration. Moorpark Redevelopment Agency housing funds ($500,000) are currently designated for the Gisler Affordable Housing Project as reserve, but a portion of these funds could be allocated to other housing programs at the Agency's discretion. It is the Committee and staff's recommendation that Community Development Block Grant (CDBG) funding be used for construction related expenditures or grants and not be used for loans. Using these funds for loans would needlessly increase the administrative cost of any loan program. • Specifically, current CDBG and Affordable Housing (Fund 22) monies which are repayments of loans from the Villa Campesina Project ($115,000), should be applied to the Gisler Affordable Housing Project. • Griffin Homes ($166,000) and other sources such as the MRA should be used for generic housing programs (eg. first time home buyer programs). • Housing rehabilitation programs can consist of loans or grants for very low (50% of median income) and low income (80% of median income) owner /residents of housing in the redevelopment project area and loans for moderate income (120% of median income) owner /residents. (see attached Table) • Loans to be limited to $10,000 and grants to $5,000 for very low and low income with a $15,000 combined cap and loans limited to $15,000 for moderate income. • Loans to be for a term of 10 years or less, with monthly amortization, interest to be set at 80% of the Long Bond (30 year Treasury). • Annual review of the loan terms and interest rate applied for new loans and annual reporting to the City Council. Recommendation The Budget and Finance Committee and staff recommend Council adoption of the guidelines proposed above and direct staff to prepare a plan for implementation of a housing rehabilitation program along the proposed guidelines. C: \WPWIN60 \CC.REP \LOANPRGM.WPD TABLE 1 20 PERCENT HOUSING SET -ASIDE FUNDS BASE YEAR 1988/1989 TO 1999/2000 INCREASE IN ENTRY FISCAL ASSESSED ASSESSED VALUATION TAX INCREMENT HOUSING FUNDS NO. YEAR VALUATION OVER BASE YEAR REVENUES AT 1% 20$ HOUSING FUNDS CUMULATIVE 1. 1988/1989 $260,645,252 $0 $0 $0 $0 2.* 1989/1990 $295,844,170 $35,198,918 $0 $0 $0 3. 1990/1991 $325,020,649 $64,375,397 $157,085 $31,417 $31,417 4. 1991/1992 $365,839,369 $105,194,117 $256,431 $51,286 $82,703 5. 1992/1993 $386,703,674 $126,058,422 $1,311,826 $262,365 $345,068 6. 1993/1994 $379,419,965 $118,774,713 $1,187,747 $237,549 $582,618 7. 1994/1995 $398,390,963 $137,745,711 $1,377,457 $275,491 $858,109 8. 1995/1996 $418,310,511 $157,665,259 $1,576,653 $315,331 $1,173,440 9. 1996/1997 $439,226,037 $178,580,785 $1,785,808 $357,162 $1,530,601 10. 1997/1998 $461,187,339 $200,542,087 $2,005,421 $401,084 $1,931,686 11. 1998/1999 $484,246,706 $223,601,454 $2,236,015 $447,203 $2,378,888 12. 1999/2000 $508,459,041 $247,813,789 $2,478,138 $495,628 $2,874,516 1. ( *) PLAN ADOPTION FY 1989/1990 BASED ON 21.88196525 % RATIG ------ - - - - -- OF MOORPARK TOTAL ASSESSED VALUE OF $1,352,000,000. 2. 1990/1991 TO 1992/1993 SHOWS ACTUAL FUNDS RECEIVED BY COUNTY 3. 1993/1994 TO 1999/2000 ARE PROJECTED FUNDS TO BE RECEIVED AT 5.00% WHCIH IS THE PERCENT OF INCREASE PROJECTED FOR THE LIFE OF THE PLAN. ---- - - - - -- TAX ALLOCATION BOND HOUSING FUNDS: ----------------------------- .____..------------------------------____-- $1,784,860 TAX INCREMENT HOUSING FUNDS RECEIVED: -------------------------- ------------------------------------ - - - - -- $345,068 SUB TOTAL FY 1993/94: ------------------------------------------ ------------------------------------ - - - - -- $2,129,928 PROJECTED TAX INCREMENT HOUSING FUNDS: ------------------- - - - - -- .----------------------------------- - - - - -- $2,529,448 ----- - - - - -- TOTAL HOUSING FUNDS TO BE RECEIVED BY AGENCY FY 1999/2000: ------------------------------------ - - - - -- $4,659,376 (lj INCOME --------------- VERY LOW (50 %) LOW (80 %) MEDIAN MODERATE (120 %) PERSONS IN FAMILY 1 2 5 6 7 8 19325 22075 243�--,0 29800 32025 34225 36425 30920 35320 39766 4416('i 47680 51240 54760 58280 38650 44150 49 70( 1-)`,20(1 59600 64050 68450 72850 46380 52980 59-,4( r; +- 24( '71520 76860 82140 87420