HomeMy WebLinkAboutAgenda Report - August 21, 1991 (70)r Of
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CITY ®F LODI 00UNCEL OOM"MTM
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AGENDA TITLE: Consider Consortium Agreement with San Joaquin County
for HOME Program
NEEENG DATE: August 21, 1.991
PREPARED BY: Community Development Director
RECOMMENDED ACTION That the City Council consider entering into a
Cooperation Agreement with San Joaquin County, as
necessary to become eligible to receive funds under
HUD's HOME Program. This agreement shall be in force through the end of Federal
Fiscal Year 1993.
BACKGROUND P4i1 MATION Under the Housing and Community Development Act of 1974,
San Joaquin County as an urban county is potentially
eligible to receive HOME funds equal to or greater than
$750,000. This consortium agreement solicits the cooperation and co -participation
of Lodi and cities in the County for purposes of receiving HOME funds under the
National Affordable Housing Act and promoting affordable housing.
The primary intent of this agreement is to enable the County and the Cities to
cooperate in undertaking public-private partnerships to provide more affordable
housing within San Joaquin primarily to benefit low and very low income households.
FUNDM. Name Required.
aget9nHtyS&depment Director
unity Development Direr
Prepared by Eric W. Veerkamp, Community Development Block Grant Coordinator
JBS/EWV/cg
Attachment
APPROVED: —r & . a& _ +
THOMAS A. PETERSON �/�
City Manager recycled paper
cc -1
CCCD91.13/TXTD.01C
1.
{ HOME INVESTMENT PARTNERSHIPS ACT (HOME)
PROGRAM DESIGN/PURPOSE
• HOME is intended to be a locally designed and administered program which:
expands the supply of decent, safe, affordable and sanitary housing,
with primary attention to low income rental housing
strengthensthe abilities of statatlocal governments to design and Implement
affordable housing strategies
Provides both federal financial and technical assistance (including the development
of model programs and approaches)
s Federal restrictions on use d: funds and program requirements vary by the activity being
funded. In general. the legislation places requirements on:
Eligible uses of funds Per unit assistance limits
Program Benefit requirements Matching fund requirements
o me program is intended provide local jurisdictions with a source of funds which can be used
to implement locally designed housing programswhich best fit local needs. (it in essence
replaces variety of specialized federal housing rehabilitation programs including Rental
Rehabilitation, Section 312, Urban Homesteading, and S3ttim 8 New Construction,
Substantial Rehabilitation and Moderate Rehabilitation Programs, except for Moderate
Rehabilitation SROs).
I
ELIGIBLE ACTIVITIES
Funds may be
o Rehabilitation L< $25,000/DU)
• Substantial Rehabilitation ($25,000/DU or more)
• New Construction
• Acquisition
• Site Improvements
•
Conversion/Demolition
• Financing Costs/Relocatiori
o Tenant -based rental subsidies
and may be crovided in the form of:
• Loans of grants
• Equity
*Interest subsidies
o Other methods determined by HUD
REHABILITATION VS. NEW CONSTRUCTION
• Grantees must give preference to rehabliltstion unless it is not cost-effective or the grantee's
affordable housing needs cannot be met through rehabilitation
• New construction is only permitted when HUD determines that an inadequate Rousing supply
exists andlor there is a shortage of substandard housing suitable for rehabilitation as
affordable housing. (HUD's criteria must resutt in at least 30 percent aF grantees being
deemed eligible to undertake new construction.)
• However, grantees may undertake new construction if:
New construction is neededto facilitate neighborhood revitalization program "which
emphasizes rehabilitation in a grantee -designated area:
The housing is located in a low/mod neighborhood;
The number of units constructed doemlt exceed 20 percent d total units assisted
under the neighborhood revitalization program: (20%limit may be waived in cenain
circumstances)
The housing is producedby a community housing development organization or a
Pt"ic agcy.
o And, grantees may undertake new construction to meet the needs of special populations
(large fannties, persons with disabilities. homeless, other needs approved by HUD.) r "
1
0 10 percent of 1591 funds and 15 percent of 1992 funds will be dedicated to new construction
or substantial rehabilitation (to be used by grantees determined to quality).
PROHIBITED ACTIVITIES
Funds may not be
o For administrative costs •
For Public Housing Modernization
(c1AP)
o Fortenanl-based assistance
in conjunction with •
In conjunction with the Emergency
- Section 8 Existing subsidies
Low hicome Preservation Act of 1987
- Replacemern of demolished public housing
- Preserving federally assisted housing •
In conjunction with the Low Income
- Pr
Housing Preservation & Resident
- Displacement P
Homeowner Act d 1990
- Extending Section 8 housing assistance
• As a non•tederal match for other programs
o For annual contributionsfor public housing
3.
HOUSING STRATEGY/MODEL PROGRAMS
Each jurisdiction must develop a Comprehensive Housing Strategy for review and apprQval by
HUD.
• HUD must provide local govemmentswith technical assistance including model program
designs to assist them in implementing the HOME program.
o Mandated model programs include:
A rental housing production program in which up to 50% of development costs would
be provided at 3 percent interest. (Limitations on surplus cash are specified.)
A rental rehabilitation program similar to the Civat Rental Rehabilitation Program
A rehabilitation loan program similar to the current Section 312 ,,rogram.
Several sweat equity programs including:
o grants to nonprofit and community housing devetopmert organizations to
provide technical avid supervisory assistance to low income families
participating in a self-help housing program.
o a homeownership program inwhich eligible families exchange labor for
acquisitioh-of the property.
o a remat opportunities program in which tenant labor would be used as a
t. supptement cr in lieu of iutt payments by the tenant.
Home repair services grant program for older and disabled homeowners
Low income housing energy conservation and efficiency grant program.
Second mortgage assistance for first-time homebuyers
Rehabilitation of State and Local IN REM properties
SET ASIDES FOR COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS
• Nat less than 15pefcent of the funds allocated to a local jurisdiction must be reserved for use
by community housing development organizations for a period of 18 months.
• Monies in the sat aside are to used only for housing developed, sponsored or owned by
community housing development organizations.
• Community housing development organizations:
organized under state or local laws as non proths
dedicated to provision of affordable low/moderate income housing
maintain representation by and accountability to low income community residents
have a demonstrated capacity to cavy alt activities under HOME
have a history of serving the total community
o Community housing development organizations may use the funds tor:
any eligible HOME activity; and
Up to 10 percent of this amount may be used for technical assistance, site control
loans and seed money loans.
FUNDING
o Funding to be provided on a formula allocation basis ty
States (minimum allocation fir states = $3 million)
Cities/Counties/Consortia PV!ble to receive at least $750,000 by the allocation formula
Cities and counties that would receive a formula allocation of less than $750,000
where the state, locality or other funding source pledges to provide the gap.
Formula is need driven based primarily on housing needs, conditions, and affordability.
0 60/40 split of allocation between Ckiesfcounties and States
o One percent cf funding istaken 'off the top' for Indian Tribes
• Amounts specified for technical assistance many also be taken 'off tha top'
• 1 s percent of each grantee's asocation is set-aside for non-profit development entities
o Funds must be matched as follows:
25 percent for rehabilitation and tenant -based rental subsidies
33 pert.nt for substantial rehabilitation
50 percent for New construction
• Authorization
•
Total Authorization
Fund for Non profit
Technical Assistance
Fund for Other
Technical Assistance
Appropriations:
MAI 1992
$1 billion $2.086 billion
$14 million $14 million
$11 million $11 million
None to Date TBIJ
I.,
t
PROGRAM BENEFIT (income Targeting and Affordabitlty)
For rental assistance/rental units , ail units must be occupied by lower income families.
o Program participants to betaken from the Section 8 waiting list.
• At least 90 percent of funds must be used to assist units initially occupied by families whose
incomes do not exceed 60 percent of are8 median.
o Balance of funding must be used to assist units initially occupied by families whose incomes
do not exceed 80 percent of arcs median income.
• Rents may not exceed the lesser of the applicable Fair Market Rent or 30 percent of adjusted
family income of family at 65 percent of area median income. (HUD may establish higher or
lower fiirrits.)
• A minimum of 20 percent of units must be occupied by very low income occupants (50
percent of area median) paying no more than the lesser of 30 percent of adjusted income or
the gross rent for rent restricted units under a2(g)(2) of internal Revenue Code of 1986.
o Units trust remain affordable for remaining life of property (HUD determined) or fcre such
other period HUD determines is the longest feasible period of time, consistent with sound
economics. (Project rents may be adjusted by HUD if HUD finds this necessary for continued
financial feasibility.)
• Tenant income must be recertified annualty. Tenants no longer qualifying as tow income may
remain in property, but must pay 30% of adjusted income to rent.
For homeowner assistance
o Only first time homebuyers it whom this will be a principle residence are eligible
• 100 percent of funding mist benefit families at or below 80 percent of area median income.
• Purchase price may not exceed 95 percent of median purchase price for the area (adjusted
for size, type of structure, age of dwelling.)
• Properties may be resold onty to other low income families for use as a principle residents at a
price consistent with grantee guidelines which assure (1) the owner a fair return on investment
and (2) affordability for the new purchaser
GI
MATCHING REQUIREMENTS
e Depending upon the activity HOME funds require the following matching monies:
ACTIVITY MATCH
Rehabilitation 25%
Substantial Rehabilitation 33$
New Construction 50%
Rental Assistance 25%
o Matching funds may come from:
Non-federal cash contributions
CDSG cash contributions are not permitted as a match
Payment of administrative costs
Only 7% cE matching funds can be administrative costs
CDBG admirftuative contributions are allowed as a match
Value d: customary taxes, fees, or other charges that are waived cr foregone
Value ofland or other real property
Value d investment in on or oft silo infrastructure required for the assisted housing
s Under limited circumstances HUD may waive the matching requirements
HOMEOWNERSHIP AND OPPORTUNITY FOR PEOPLE EVERYWHERE (HOPE)
Appropriations
1991 None to date
1992 TBD
Eligible Applicants PHA. RMC. Resident
Councils. Non profits.
pubilc bodies
Eligible Homebuyers Public housing residents.
low income families.
families assisted under
HUD or FmIHA Programs
None to date None to date
TBD TBD
Same as Hope I Private nonprofits.
Cooperative associations.
public agencies in
cooperation with a private
non-profit .
Tenants of eligible
properties. low-income
families
Low-income families who are
first time homebuyers
Non -Federal Match 4:1 3:1 3:1
HOPE I
HOPE If
ROPE Ili
PROVISION/REQUIREMENT
Eligible Housing
Public & Indian Housing
Multifamily Properties
Single fm* properties
Stock except single
(5+units) owned/held by
owned/held 1-y HUD. RTC,
family scattered site
HUD. RTC, FmHA or state/
VA. and PHA scattered site
local government
units
Authorization
1991
$68 million
$51 mlliim
$36 million
1992
$380 million
$280 million
$195 million
Appropriations
1991 None to date
1992 TBD
Eligible Applicants PHA. RMC. Resident
Councils. Non profits.
pubilc bodies
Eligible Homebuyers Public housing residents.
low income families.
families assisted under
HUD or FmIHA Programs
None to date None to date
TBD TBD
Same as Hope I Private nonprofits.
Cooperative associations.
public agencies in
cooperation with a private
non-profit .
Tenants of eligible
properties. low-income
families
Low-income families who are
first time homebuyers
Non -Federal Match 4:1 3:1 3:1
HOMEOWNERSHIP AND OPPORTUNITY FOR PEOPLE EVERYWHERE
PROGRAM DESIGN
o Eligible applicants assess needs and prepare grant applications
o Grant applications competitivety reviewed and evaluated by HUD based on such things as:
qualifications of ?heapplicant
tenant interest in the development of a program
potential for a -successful program
appropriateness of housing Stock to a homeownership program
national geographic diversity
.ELIGIBLE ACTIVITIES
Plannino Grants no! to exceed $200,000 each m4y be used for:
o technical assistance Ior specific homeownership program
development,
o preliminary architectural and engineering work;
o tenant and homebuyer counseling and training;
o planningfor economic development activities that promote
economic sett sufficiency;
o feasibility studies of proposed homeownership programs;
• devetopment of security plans;
o preparation of implementation grants;
o development of RMCs and resident councils (Hope I and II
only)
Implementation Grants maybe used for:
• architectural and engineering work;
• acquisition and rehabilitation;
• homebuyer counseling and training;
• permanent and temporary relocation assistance;
o legal fees;
• ongoing training to carry out the program;
For HOPE I and it -- administrative costs which may not
exceed 150/od' assistance; operating costs and
implementationof replacement housing plans.
o Economic development activities to promote self-sufficiency
may not total more than $250,000 under both planning and
implementationgrants combined:
o Itoms covered under planning grants cannot also be covered
u ider implementation grants 2
PROGRAM REQUIREMENTS
Housing Strategy
Programs must be consistent with approved state
cr local housing strategy.
r
Affordability
Sales price must be set so that monthly PITI does not exceed 30 percent
of family's adjusted monthlyincome.
Housing Quality Standards
Prior to transfer units must be free of health/
safety defects and must, within 2 years. satisfy minimum housing
quality standards to be set by HUD
Participant Selectton
Current tenants have the first opportunity to participate; other low income tenants are eligible with preference to those who have participated
in an economic seEf-sufficiency program. For HOPE Ill, in addition to being low income, participants also must be first-time homebuyers (in
general. defined as persons who have not owned a home within the past three years)
Protection of Existing Tenants
No tenant may be evicted for. declining to participate.
HOPE guarantees nonparticipants who choose to move relocation assistance and, subject to availability of appropriations, a unit in another .
public housing project or Section 8 existing assistance.
For HOPE la relocation assistance must be provided and Section 8 assistance must be provided if appropriations are available'.
Tirhefy Homeownership
Programs must transfer properties to tenants in accordance with a specified, 'reasonable' time schedule.
Prior to sale property must be operated as rental housing according to written tenant setection policies approved by HUD.
3
Resale Restrictions
It ownership is transferred within 6years owners proceeds are limited to: personal equity contributionsto date + vatue of improvements made
by family + appreciated value measured by index agreed upon at time of purchase
If ownership is transferred between 6 and 20 years, the homeownership program must recapture the outstanding principle balance of any
note securing the difference betweenthe original market vafue df a property and the origii tat purchase price.
Program administrators may impose other restrictions such as caps on Owner proceeds
Administrators have the first right to purchase properties from homeowners at the same amount agreed to in a firm contract between the
Owner and prospective buyer.
Net resale proceeds are split (50/50) betweenthe homeownership program and HUD
4
__ ..........
RESOLUTION NO. 91-159
---------------------
---------------------
A RESIOIITHON OF THE IM CITY OOUTSM
APPROVING CHUM AGREEMENT WITH SAN JOAQUN COUNTY FOR
HOME INVESTMENT PARTNIRSHPS PROGRAM BIOME)
WET -A$, under the Housing and Community Development Act of 1974,
San Joaquin County as an urban County is potentially eligible to
receive Home Investment Partnerships Program (HOMES funds equal to or
greater than $750,000, for purposes of receiving HOME funds under the
National Affordable Housing Act and promoting affordable housing;
NOW, THEREFORE, BE IT RESCLUFD, that the Lodi City Council hereby
approves the execution of a Cooperation Agreement with San Joaquin
County, as necessary, to become eligible to receive funds'under Housing
and Urban Development's HOME Program, to be in force through the end of
Federal Fiscal Year 1993.
Dated: August 21, 1991
I hereby certify that Resolution No. 91-159 was passed and
adopted by the Lodi City Council in a regular meeting held August 21,
1991 by the following vote:
Ayes : Council Members - Pennino, Pinkerton, Sieglock, Snider
and Hinchman (Mayor)
Noes : Council Members - None
Absent: Council Members - None
J ni fer MV Perrin
Deputy City Clerk
for Alice M. Reimche
City Clerk
91-159
RES91159/TXTA.02J
COOPERATION AGREEMENT
THIS AGREEMENT, entered into this day of
1991, between the COUNTY OF SAN JOAQUIN, a
political subdivision of the State of California, hereinafter
referred to as "COUNTY", and the CITIES of Escalon, Lathrop,
Manteca, Ripon, Tracy, duly Incorporated Cities within the County
and the City of Lodi and Entitlement City, hereinafter referred
to as "CITY" when referring to a single city named above or
"CITIES" when to more than one of the cities named
above.
W I T H E S S ETH :
WHEREAS, the National Affordable Housing Act of 1990. Public
Law 101-625, enacted November 28, 1990, provides for the
distribution of federal funds through the HOME Investment
Partnerships Act to eligible public entities; and
WHEREAS, those public entitles which are eligible to receive
said funds are metropolitan cities, urban counties or consortia
whose Formula allocation for distribution of HOME funds is equal
to or greater than $750,000;
WHEREAS, the COUNTY, having heretofore qualified as an urban
county under the Housing and Community Development Act of 1974
and thus is eligible under the formula allocation to receive HOME
funds, solicits the cooperation and co -participation of public
entitles such as the CITIES in a Consortium for purposes of
receiving HOME funds under the National Affordable Housing Act
and promoting affordable housing; and
WHEREAS, the individual CITIES, not being eligible for a
formula allocation equal to or greater than $750,000, desire to
cooperate and co -participate with County in a Consortiurn for
purposes of receiving HOME funds and promoting affordable
housing; and
WHEREAS, a Cooperation Agreement by and between CITIES and
COUNTY establishes the formal relationship to cooperate and co -
participate as a Consortium and is specifically authorized under
the provisions of Government Code Section 6502 and 26227; and
WHEREAS, Federal regulations 24 CFR Part 92 governing the
Home Investment in Affordable Housing Program state that the
cooperation agreement must be completed and submitted by August
1, 1991; and
1
WHEREAS, CITIES now desire to enter into the instant
Cooperation Agreement with the COUNTY so that they may qualify,
under applicable provisions of the National Affordable Housing
Act and HUD regulations, as co -participants with county in
eligible activities under the Act:
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING, the
parties hereto agree as follows:
1. Purnose: This agreement is for the purpose of enabling
the COUNTY and the CITIES to cooperate in undertaking, or
assisting in undertaking, public-private partnerships to provide
more affordable housing within San Joaquin County through the use
of HOME funds to carry out multiyear housing strategies through
acquisition, rehabilitation, new construction of housing, tenant -
based rental assistance and financing of rental housing and
first-time homeowners programs, primarily to benefit low and very
low income households.
2. Term: The term of this agreement shall be for the
remainder of Federal fiscal year 1991 and for full Federal fiscal
years of 1992 and 1993, unless HUD earlier revokes the
Consortium's designation as a participating jurisdiction. CITIES
agree not to withdraw from the Consortium prior to the expiration
of Federal fiscal year 1993.
3. Consortium Reoresentati.ve: The COUNTY is authorized to
act in a representative capacity for all Consortium member units
of general local government for the purposes of the HOME program.
4. (a) Consortium Representative's Responsibility:
COUNTY, as designated representative of the Consortium, has the
ultimate and overall responsibility, under the Act, and in the
view of HUD, Cor ensuring that the Consortium's HOME program is
carried out in compliance with the requirements of 24 CFR Part
92, including tae submission of a Program Description for the Use
of HOME funds which has been mutually agreed upon by CITIES and
COUNTY, and for providing all assurances or certifications
required under 24 CFR Part 92. The Program Description sets
forth the Consortium's estimated use of HOME funds (consistent
with needs identified in its approved consolidated housing
strategy) within each of the eligible activity categories.
Therefore, COUNTY requires CITIES, and CITIES agree to strict
adherence to the Program Description as approved, and to all
assurances and certifications provided, including agreeing to
take all actions necessary to assure compliance with the County's
certifications under the Fair Housing Act; Executive Order 11063
(Equal Opportunity in Housing) and Title VI of the Civil Rights
Act of 1964; and the Uniform Relocation Assistance and Real
2
Property Acquisition Policies Act of 1970. COUNTY shall not
provide HOME funds for activities in, or in support of, any
cooperating CITIES that do not affirmatively further fair housing
within their own jurisdictions. Nor shall COUNTY provide HOME
funds for activities that impede the COUNTY'S actions to comply
with its fair housing certification. In addition, the COUNTY and
CITIES are responsible for taking all required actions to comply
with the provisions of the National Environmental Policy Act of
1969.
(b) City Subiect to Same Recruiramnts as Subrecioients -
Pursuant to 24 CFR 92.504 (a) , each CITY is subject to the same
requirements applicable to subrecipients, including the
requirement of a written agreement set forth in 24 CFR 92.504(b).
COUNTY, as Consortium representative, has the responsibility for
ensuring that HOME funds are used in accordance with all program
requirements, for determining the adequacy of pert rmance under
agreements and procurement contracts, and for taking appropriate
action when performance problems arise. Therefore, before
disbursing any HOME funds to CITIES or projects in the CITIES,
COUNTY will require CITIES, and CITIES agree to enter into a
written agreement for each individual project.
5. Affirmative Action: Under COUNTY'S ultimate
supervision and responsibility as Consortium representative, Each
CITY covenants and agrees that it will abide by and enforce all
applicable affirmative action requirements including, but not
limited to Executive Order 11246, the Equal Employment
Opportunities Act, the San Joaquin County Affirmative Action Plan
and local affirmative action plans.
6. County's Resoonsibility to Cities: In addition to the
foregoing obligations, COUNTY agrees:
a. As Consortium representative, COUNTY shall, in
preparing future plans under the National Affordable Housing Act,
solicit to the extent allowed by the Act and all HUD regulations,
CITIES' participation in the development of such future plans
which refer to CITIES' activities under the Act.
b. As Consortium representative, COUNTY agrees to
distribute funding it receives from the Consortium's current plan
application and in future plans, in accordance with the terms and
provisions therein contained, or in accordance with such terms
and conditions as required by the Act of HUD.
7. Cities Responsibilities to County: In addition to the
foregoing obligations:
a. Each CITY agrees to expend any funds received by virtue
of'any of the Consortium's plans only in accordance with the
terms and conditions stated therein, or as amended by HUD.
3
b. Each CITY agrees to cooperate with COUNTY as Consortium
representative in the development of future plan applications for
HOME funds under the Act, with regard to affordable housing
development activities to be continued or undertaken by each CITY
within its boundaries.
8. Local HOME Investment Trust Fund:
a. As Consortium representative, COUNTY must establish a
local HOME Investment Trust Fund account.
b. Any repayments of HOME funds and matching contributions
and any payment of interest or other return on the investment of
HOME funds and matching contributions must be placed in the local
HOME Investment Trust Fund account,
C. COUNTY has the responsibility for monitoring and
reporting to HUD on the use of any such local HOME Investment
Fund monies and COUNTY shall require appropriate recordkeeping
and reporting by each CITY as may be needed for this purpose; and
d. In the event of close-out or change in status of any
CITY or CITIES, any HOME program income that is on hand or
received subsequent to the close-out or change in status shall be
paid into the local HOME Investment Trust Fund administered by
the COUNTY as Consortium representative. A CITY may elect to
have its matching contribution, as available, returned to the
CITY or remain in the local HOME Investment Trust Fund for use
for other eligible projects.
9. Headinas: The headings in this document are merely for
the convenience of the parties, and do not form a material part
of this document. Headings shall not be considered in the
construction of this document.
10. Minor Amendments to the Asreement: Should it become
necessary to change the language of this agreement to meet HUD r,egu i rements
this Agreement may be amended in writing with the written consent
of both the City Manager of any affected CITY and the Chairman of
the San Joaquin County Board of Supervisors.
All remaining provisions of said agreement shall remain in
full force and effect for the term provided herein.
il. Counterparts to this Agreement shall be treated the
same as the original Agreement.
4
IN WITNESS WHEREOF, the parties hereto have executed this
agreement on the day and year first above written.
"COUNTY" 'CITIES"
By: By:
GEORGE L. BARBER, Chairman Mayor
Board of Supervisors City of Escalon
County of San Joaquin
ATTEST:
APPROVED AS TO FORM:
JOHN F. CHEADLE Count Counsel
By: �Z
ATTEST: JORETTA J. HAYDE
Clerk of the Board of
Supervisors of the County of
San Joaquin, State of California
By:
Deputy Clerk
"CITIES"
By.
�44r`)
1rL► .�______�
Mayor
City of Lodi
ATTEST:
CitY.Clerk
City of Lodi
BY:
Mayor
City of Manteca
ATTEST:
City Clerk
City of Manteca`
Approved a5 :o form 5
Bob McNatt
City Attomey
Date: - �.:•
City Clerk
City of Escalon
By-,
Mayor
city of Lathrop
ATTEST:
City Clerk
City of Lathrop
By:
Mayor
City of Ripon
ATTEST:
City Clerk
City of Ripon
BY:
Mayor
City of Tracy
ATTEST:
City Clerk
City of Tracy
t.
HOME INVESTMENT PARTNERSHIPS ACT (HOME)
PROGRAM DESIGN/PURPOSE
• HOME is intended to be a locally designed and administered program which:
expands the supply of decent, safe, affordable and sanitary housing,
with primary attention to low Income rental housing
strengthens the abitities of state/Iocal governments todealgn and implement
affordable housing strategies
Provides both federal financialand technical assistance (includingthe development
of model programs and approaches)
• Federal restrictions on use of funds and program requirements vary by the activity being
funned. In general, the legislation places requirements on:
Eligible uses d° funds
Program Benefit requirements
Per unit, assistance limits .
Matching fund requirements
• The program is intended provide local jurisdictions with a source d` funds which can be used
to implement locally designed housing programs which best ti focal needs, (it in essence
replaces a variety d• specialized federal housing rehabilitation programs including Rental
Rehabilitation, Section 312 Urban Homesteading, and mar 8 New Construction.
Substantial Rehabilitation and Moderate Rehabilitation Programs, except for Moderate
Rehabilitation SROs).
ELIGIBLE ACTIVITIES
Funds may be used for:
• Rehabilitation (< $25,000/DU)
• Substantial Rehabilitation ($25,000/DU or Yore)
• New Construction
• Acquisition
• Site improvements
• Conversion/Demolition
• Financing Costs/Relocation
• Tenant -based rental subsidies
and may be provided in the form of:
Loans or grants
e Equity
• interest subsidies
0 Other methods determined by HUD
I