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Home My WebLink AboutAgenda Report - May 3, 2006 E-11ACsiENNA ITEM Ew" CITY OF LOIDI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution authorizing the transfer of $202,200 in CDBG funds from Project 02-07 Housing Assistance Programs to Project 05-02 LOEL Senior Housing Acquisition Project. MEETING DATE: May 3, 2006 PREPARED BY: Community Improvement Manager RECONNENDEO ACTION: Adopt a Resolution authorizing the transfer of $202,200 in CDBG funds from Project LOD 02-07 Housing Assistance Programs, to Project LOD 05-02 LOEL Senior Housing Acquisition Project. BACKGROUND INFORMATION: The Council has authorized allocations of CDBG/HOME funding to the LOEL Foundation for the acquisition of 303 E. Oak Street, to provide affordable senior housing, from both fiscal year(FY) 2005/06 ($71,500) and FY 2006107 ($278,391). The 20015/06 funding must be held back until the 2006107 funds are available, which holds up the LOEL Foundation's acquisition of the property and increases the City's CDBG carry-over balance from one year to the next. There has been a continuing effort from the County and all participating jurisdictions to reduce the overall County -wide carry-over balance to within the allowed ratio of 1.5 times our annual allocation in order to avoid penalties from the Department of Housing and Urban Development (HUD). It is also the City's desire to expedite the LOEL Foundation's acquisition of the property to limit the additional expense that LOEL is incurring in the way of property taxes. Until the ownership of the property is transferred to the LOEL Foundation, which is a non-profit organization, they continue to pay property taxes. The CDBG Program Administrators with the County have proposed this transfer of funds that will address both of these issues of reducing our current balance and allowing for the acquisition to be completed now rather than in July or August. We are seeking Council authorization to transfer the current balance of $202,200 from our 2002 Housing Assistance Program funding, which provides low-interest loans to qualifying low-income persons for housing rehabilitation and down -payment assistance. There will be no interruption in these loan programs as there is a sufficient balance of program income to continue to fund the assistance programs during the transfer of funds. Once the 2006/07 funding is available, the County will backfill our Housing Assistance Program funding as a new 2006/07 activity, with the funds that were allocated to the LOEL Foundation's acquisition of 303 E. Oak. In addition to the transfer of funds, we also plan to administratively reallocate $4,691 from our balance of Program Administration funding (Project 03-10) to complete the $278,391 necessary for the acquisition. The County has the authority to permit the administrative transfer of funds, without Council action, as long as the amount of the transfer/reallocation does not exceed 50% of the allocated amount. APPROVED: Blair KLngXity Manager FISCAL. IMPACT: Transfer of funds is done at the County level, so there would be no funds dispersed through the Finance Department as a result of this transfer. FUNDMNIG AVAILABLE_ Project LO❑ 02-07 — Housing Assistance Programs - $202,200 available Project LOD 03-10 — Program Administration - $41,091 available Ruby Pa e, Interim Finance Director f Jos ph Wood Concurred Randy Hatch Cohimunity lmpr nt Manager Community Development Director cc: Finance Director Karon Stevens, SJ County LOEL Founda*M LOEL Time Table Previous Funding Allocations 1996 — LOEL Foundation Building Rehab $ 45,000 — Reallocated to 1998 1997 — LOEL Foundation $ 60,000 — Reallocated to 1998 1998 — LOEL Foundation — Building Rehab Project $105,000 — Completed 1999 — LOEL Foundation — Interior/Exterior Renovation $ 75,000 — Completed 2000 — LOEL Foundation — Sidewalk/Streetscape Project $ 40,000 — Completed 2000 — LOEL Senior Center Program 2002 — LOEL Foundation — Parking Lot Project 2003 — LOEL Foundation — Minor Interior Rehab 2004 — LOEL Senior Housing — Buy -down 301 E. Oak 2004 — LOEL Senior Housing — Buy -down 301 E. Oak 2005 — LOEL Senior Housing — Acquisition 301 E. Oak 2005 — LOEL Senior Housing — Buy -down 303 E. Oak 2006 — LOEL Senior Housing — Acquisition 303 E. Oak $ 10,000 — Deemed Ineligible - Reallocated to 2005 $ 72,199 — Completed $ 22,908 — Not yet started $202,681 (HOME Funds) —Completed $100,109 (CDBG Funds) — Completed $128,319 — In Escrow $171,609 — In Escrow $278,391 Of those allocations listed above, only the following funding allocations are outstanding: 2003 — LOEL Senior Center Rehab $ 22,908 Status: Labor Standards packet was provided to LOEL Admin to accommodate bids/quotes for work that will be done. Awaiting follow up from LOEL. Funds cannot be released to previous contractor because of signed agreement between LOEL and contractor releasing liability for work performed. Aside from the fact that the agreement exists, there are no labor standards documentation from that contractor. 2005 — LOEL Senior Housing — Acquisition 301 E. Oak $128,319 Status: Necessary loan docs have been prepared, signed and forwarded to County. Funds placed in escrow and release is pending. 2005 — LOEL Senior Housing — Buy -down 303 E. Oak $171,609 Status: Necessary loan docs have been prepared, signed and forwarded to County. Funds normally held until balance of funds for acquisition allocated in 2006/07 have been released in July/August. Proposed transfer will expedite that release of funds. RESOLUTION NO. 2006-77 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE TRANSFER OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FROM PROJECT 02-07 HOUSING ASSISTANCE PROGRAMS TO PROJECT 05-02 LOEL SENIOR HOUSING ACQUISITION PROJECT NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi does hereby approve the transfer of $202,200 in Community Development Block Grant funds from Project 02-07 Housing Assistance Programs to Project 05-02 LOEL Senior Housing Acquisition Project in order to expedite the LOEL Foundation acquisition of 303 E. Oak Street to provide affordable senior housing; and BE IT FURTHER RESOLVED that the City Council further approves the administrative reallocation of $4,691 from the City's balance of Program Administration funding (Project 03-10) to complete the funds for the acquisition. Dated: May 3, 2006 I hereby certify that Resolution No. 2006-77 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 3, 2006, by the following vote: AYES: COUNCIL MEMBERS — Beckman, Hansen, Johnson, Mounce, and Mayor Hitchcock NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS -- None -:: -- �� - V<:: � �-� SUSAN J. BLA KSTON City Clerk 2006-77