HomeMy WebLinkAboutAGENDA REPORT 1996 0117 CC REG ITEM 07K..- _........ .
ITEM-Z. �
AGENDA REPORT
CITY OF MOORPARK
TO: Honorable City Council
FROM: Martin R. Cole, Management Analyst
Department of Administrative Services
DATE: January 9, 1996 (CC Meeting of January 17, 1996)
J
/74,
SUBJECT: Consider City Application for 1996 -1997 HOME Funds in Support of the
Redevelopment Agency's Housing Rehabilitation Program
BACKGROUND
The County of Ventura has announced the application period for project funding under the
Federal Home Investment Partnership Program (HOME) for Project Year 1996 -1997, a part of
the Federal Community Development Block Grant (CDBG). However, unlike the City's
entitlement amount under CDBG, HOME funds are allocated competitively. Any HOME funds
awarded through the competitive process would be in addition to the City's CDBG entitlement.
DISCUSSION
Under HOME guidelines, HOME funds can be used for the following three types of housing
programs for very low and low income households:
Home Ownership - This category includes developing and supporting of home
ownership affordability through the acquisition, new construction, reconstruction,
and /or rehabilitation of single family or multi - family housing meant to be owner -
occupied by qualified households;
Rental Housing - Using strategies similar to those of the Home Ownership
category, HOME funds may be utilized to support affordable rental housing for
qualified tenants; and,
Tenant -Based Rental Assistance - HOME funds may also assist qualified tenants
with rental subsidies and security deposit grants/loans.
Based upon the above qualifying categories, HOME funds could be used for tenant -based rental
assistance. However, such use would be a substantial change in the City's existing Housing
Rehabilitation and Loan Program and, because of additional HOME program screening and
monitoring requirements, would generate additional administrative costs. Since the County
specifically exempts administrative costs from eligible reimbursable costs, these potential
administrative costs would have to be borne by the City (or Redevelopment Agency, dependent
upon the location of the eligible project).
00011.3
Memo. to the Honorable City Council
1996 -1997 HOME Program Application Authorization
January 9, 1996
Page two
DISCUSSION (Continued)
Under the single family rehabilitation eligibility, staff considers HOME a potential funding source
to augment the grants and loans awarded under the City's existing Housing Rehabilitation and
Loan Program (currently funded exclusively by the Redevelopment Agency). While HOME funds
are still restricted to households qualifying as Very Low or Low Income, they are not restricted to
use within the Redevelopment Area. This provides the potential of expanding the Housing
Rehabilitation and Loan Program to projects located outside of the Redevelopment Area without
significantly increasing the administrative costs of the Program.
HOME funds generally require 25% in local contribution. However, due to a waiver issued to the
County of Ventura resulting from the January, 1994 earthquake and 1995 floods, any HOME
funds expended prior to September 30, 1996 are not subject to local match.
Staff proposes submitting an application for $50,000 ($12,500 potential local match). If
successful, funds could be available on July 1, 1996. If we cannot spend the funds by September
30, 1996, staff would recommend using City Housing Fund monies as the local match.
RECOMMENDATION
That the City Council authorize the City Manager to prepare and submit an application for 1996-
1997 HOME Program Funds in the amount of $50,000 to augment and potentially expand the
City's existing Housing Rehabilitation and Loan Program outside of the Redevelopment Area.
Attachment: Proposed Resolution Authorizing the City Manager to Prepare and Submit a 1996-
1997 HOME Program Application in the amount of $50,000