HomeMy WebLinkAboutAgenda Report - April 6, 1988 (55)THE CITY COUNCIL
=ROM: THE CITY MANAGER'S OFFICE
"7UNCIL COMMUNICATI 1.
DATE: NO.
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,UBJECT: AMENDMENT TO LOD. HOUSING REHABILITATION GUIDELINES INCLUSION OF INTEREST
FOR .DEFERRED PAYMENT LOANS
RECOMMENDED ACTIO`: That the City of Lodi shall amend the City's
Single -Family Housing Rehab Program to include a
statement of no interest charges on deferred
payment loans;. and
that, in accordance with the Property Rehabilitation Loan Agreement
between the City of Lodi and the Bank of America, the City shall notify the
Bank of the rates and terms for the City's Deferred Payment Loans
(0% interest).
BACKGROUND INFORMATION: Upon adopting the City's Single Family Housing
Rehabilitation. Guidelines, City Council
expressed interest in the possibility of
including interest rates for deferred interest loans. Inasmuch as the
Rehab Guidelines specifically excluded. charging interest on deferred loans
(Op), the Guidelines were adopted omitting the 0% interest rate, pending
further investigation by City Staff.
After a period of research, the Contingent Deferred Interest concept, as
developed by the City of Chula Vista, appeared to be the most equitable way
to charge interest on deferred loans:
Upon the sale of the property, the principle sum plus contingent
interest equal to the percentage of the value of the increase in
the fair market value of the property at th- time of sale over
the purchase price of the property shall be -paid. If no sale of
the property is made prior to 30 years, th � principal Olds' an
additional sum equal to the percentage of the value of the
increase in the appraised fair market of the property over the
purchase price of the property shall. be due and payable.
The Contingent Deferred Interest concept was developed primarily for
assistance to mobilehome parks conveting to resident ownership,
where, due to adverse market conditions, Chula Vista becomes a
participant in substantial risk, and for that reason, it was agreed
it should participate in equity gain as well.
However, Chula Vista does not use the Contingent Deferred Interest
for their standard single fancily rehab program for reasons common to
many communities:
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Deferred loans are tough to self, especially to the elderly, due to:
1. People's general distrust of government;
2. Houses owned "free and clear" should remain unencumbered f o r
heirs.
3. Interest charges makes deferred loans even less attractive,
especially if neighborhood property values are unstable.
CONCLUSION: Although the Contingent Deferred Interest
concept would be the most equitable way to
collect interest on deferred loans, it
,.+could not enhance the marketability of deferred loan programs. Since
deferred loans for single family rehab typically experience marketing
problems, charging interest rates is not recommended.
ES B. SCRROEDER
Community Development Ii re ct or
CC/1.1.4/TXTD.01B
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RESOLUTION APPROVING MEMORANDUM OF tt4)ERSLAT DM OF C1MVL14IY
BLOCK GRANT FUNDING HOUSING REHABIUTATION SERVICES
BE IT RESOLVED that the City Council of the City of Lodi does hereby approve
the Manomidun of Understanding dated October 21, 1987 between San Joaquin County
and the City of Lodi to establish an agreement between the County and City with
regard to the use of Block Grant funds for the City of Lou i ' s Housing
Rehabilitation Program, which is to be jointly administered and carried out by the
County of San Joaquin and the City of Lodi, a copy of which is attached Marked
Exhibit A, and hereby made a part hereof.
Dated: October 21, 1987
I hereby certify that Resolution No. 87-146 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held October 21, 1987
by the following vote:
Ayes: Councilmembers - Hinchman, Pinkerton, Reid, Snider, and
Olson (Mayor)
Noes : Councilmembers - None
Absent: Councilmembers - None
i
Alice M. P,e�mche
City Clerk
MEMORANDUM OF UNDERSTANDING
HOLTIM REHABILITATION SERVICES
?NTRODUC !ON
The purpose of this memorandum dated October 21, 1987, betereen San Joaquin
County and the City of Lodi is to establish an agreement between the County and City
with regard to the use of Block Grant funds for the City of Codi's Housing
Rehabilitation Program, which is to be jointly administered and carried out by the
County of San Joaquin and the City of Lodi .
WORK PROGRAM
The Countv agrees to carry out those activities specified as County activities
under the scene r:f services (Attachment A) in implementing the City's Housing
Rehabilitation ?� ogram.
BUDGET AMOUIJT
The City of Lodi has allocated $157,000 of Block Grant funds for this
activity. The 'County agrees to incur costs, not to exceed the allocated amount and
for service rendered sunder Scope of Services, under Appendix A. The county shall be
entitled to receive reimbursement not to exceed $23,550.
TV,, f1F FTiNnC
Use of Funds pursuant to this Agreement shall be ir accordance with the
requirements of the Housing and Community Development Act of 1974 (as amended), 24
CFR Part 570; other regulations governing the Block Grant Program, and any amendments
or policy revisions thereto which shall become effective during the term of this
agreement. Community Development Block Grant regulations are incorporated herein by
reference. In addition, the City and County agree to comply with other applicable
laws, including Section 504 of the Rehabilitation Act of 1973, the Age Discrimination
Act of 1975 and Executive Order ;11063 .
��Jhe housing rehabilitation activity must be designed, or so located, as to
assist lower income persons, eliminate slums or blighted conditions on a spot basis,
or meet an urgent community development need, health or safety condition.
PERIOD OF AGREEMENT
This agreement shall be in force until all the funds allocated for this
activity have been expended; or until 12 months have elapsed from the signing of the
agreement, or whichever shall occur first; or within 30 days notice, by either party,
of its intent to cancel the agreement.
SUOPE OF SERVICES
The City and County agree to carry out all those activities specified in
Appendix A, and in accordance with the goals, policies, and guidelines specified in
Appendix B.
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REIMBURSEMENT FOR SERVICES RENDERED
San Joaquin County will be reimbursed for services rendered consistent with
allowable activities under the Scope of Services. All costs incurred must be for
eligible Housing Rehabilitation Block Grant activities. Reimbursement for
administrative services will be made monthly and claim forms will be supported by
primary source documentation to be submitted to the City for its approval.
REIMBURSEMENT FOP. POUSiNG REHABILITATION WORK
The County shall be responsible for receiving and processing claims from
contractors for work performed. The City shall have final approval of all progress
and final claims for payment.
A DtiS I NISTRATIVE AND MANAGEMENT RESPONSIBILITIES
The administrative responsibilities for implementing the Scope of Services
contain -;n Appendix A jointly rest with the City and County. I t shall be the
responsibility of the Deputy Director of the Department of Planning and Building
Inspection to ensure that the program is carried out in compliance with applicable
(Federal or State) regulatory or statutory requirements and/or supplemental guidance
issued by the funding agency or department. The City shall jointly be responsible
for certifying the eligibility and appropriateness of costs incurred and shall
acknowledge such certification in the submittal and approval of claims for
reimbursement.
MONITORING/EVALUATION
The City shall have the right to review program records at any time after 5
days notice has been given to the County.
EQUAL OPPORTUNITY IN PARTICIPATION
Under the terms of Section 109 of the Housing and Corrimunity Development Act of
1974, and in conformance with all requirements imposed by or pursuant to the
Regulations of the Department of Housing and Urban Development (24 CFR Part 570.601)
issued pursuant to this Section, no person in the United States shall on the ground
of race, color, religion, sex, age, handicap, national origin or any other basis
prohibited by applicable law be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under, any program or activity funded
in whole or in part with the community development funds.
Specific (not exclusive) Discriminatory Actions Prohibited:
The Agency may not directly or through contractual or other arrangements, on the
ground of race, color, religion, national origin, age handicap, sex or any other
basis prohibited by applicable law:
a. Deny any facilities, services, financial aid, or other
benefits provided under the program or activity.
b. Provide any facilities, services, financial aid, or other
benefits which are different, or are provided in a different form
from that provided to others under the program or activity.
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C . Subject to segregated or seaarate treatment in any facility
in, or in any matter or r -r ocess related to receipt of any
service or benefit under the program of activity.
d. Restrict in any way a;.cess to, or in the enjoyment of any
advantage or privilege enjoyed_by others in connection with
facilities, set -vices, f i nanc f i i aid or other benefits under
the program c r a c -t i v i ty .
BUSINESS AND EMPLOYMEPIT OPPORM-1ITIES FOR LOWER INCOME RESIDENTS
The City and County will conform with 'the rules and regulations set forth under
Section 3 of the Housing and Urban Development Act of 1968, (12 USC 1701u), as
amended, and the HUD regulations issued pursuant thereto at 24 CFR Part 135. This
act requires that to the greatest extent feas-.ble, opportunities for training and
employment be given to lower income resiaents o° the project area, and contracts for
work in connection with the project be awarded to business concerns which are located
in, or owned in substantiai part by, persons residing in the area of the project. In
all solicitation for bids, the contractor must, before signing the contract, provide
a preliminary statement of the work force needs an.1 plans for possible training and
employment of lower income persons. When the City and County utilize the bidding
procedure to let a bid, the invitation or solicitation for bids shall advise
prospective contractors of the requirements of Section 3 of the Housing and Urban
Development Act of 1968, as amended, and the clause shall be inserted as a component
part of any contract or subcontract. If the City and County solicits or requests an
invitation for bids, every effort feasible will be made to contact minority
organizations for a response to the solicitation or invitation for bidders.
NONDISCRIMINATION IN FEDERALLY -ASSISTED PROGRAM
In accordance with Title VI of the Civil Rights Act of 1964 (P.L. 88-352) in
the sale, lease or other transfer of land acquired, leased or improved with
assistance provided under this Agreement, the deed or lease for such transfer shall
contain a covenant prohibiting discrimination upon the basis of race, color,
religion, sex or national origin, in the sale, lease or rental, or in the use or
occupancy of such land or any improvements erected or to be erected thereon. The
Agency will comply with Title VIII of the Civil Rights Act of 1968 (P.L. 90-284) as
amended and will administer all programs and activities related to housing and
community development in a manner to affirmatively further fair housing.
PROVISION OF THE HATCH ACT
Neither the City program nor the funds provided therefore, nor the personnel
employed in the administration of the program, shall be in any way or to any extent
engaged in the conduct of political activities in contravention of Chapter 15 of
Title 5, United States Code.
LEAD BASE PAINT
Any grants or loans made by the city for the rehabilitation of residential
structures with assistance provided under this Agreement shall be made subject to the
provisions for the elimination of lead base paint hazards under 24 CFR Part 35, as
smended.
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I;! WITNESS WHEREOF, the parties hereto have executed this agreement the day and year
first hereinabove written.
ATTEST: JCFMA J. HAYDE
Clerk of the Board of Supervisors
of the County of San Joaquin,
State of California
BY (SEAL)
Deputy Clerk
APPROVAL RECOMMENDED
County Dept. of Administration
By
County Administrator
APPROVED AS TO FORM:
JOHN F. CHEADLE, County Counsel
By
Sandra Michael Affonso
Deputy County Counsel
COUNTY OF SAN JOAQUIN,
a political subdivision of the
State of California
GEORGE L. BARBER, Chairman
Board of Supervisors
San Joaquin County
CITY OF IM
By
EVELYN Mme. Olson, Mayor
City of Lodi
ATTEST�1!a �n1 r, _ �'• •i r I k
A E M. R..ITNICHE
City Clerk
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OR
APPENDIX A
SCOPE OF SERVICES
1his city and counts' agree that the following activities as specified below are the
respcnsibility of each party to this Agreement.
County Activities
1. initial Application Intake
2. Loan Applicant Eligibility Determination
3. Preliminary Housing Rehabilitation cost Estimate
4. Bank Application Processing
5. Hcusing Rehahi l itati on Work Write-up
6. Formal Bid/Review Process
7. Notice of Award
8. Notice to Proceed
9. Processing of Progress Payments
10. Request for Contractor Lien Release
11. Contractor Final Payment
12. Notice of Completion
City Activities
1. Final Loan Underwriting Decisions
2. Progress Inspections - Building Code
3. Authorization of Progress Payments
4. Authorization of Final Payment
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APPENDIX B
HOUSING REHABILITATION GOAL
The City of Lodi will attempt to encourage the rehabilitation of all
eligible residential structures 'located within the east side target area
(refer to map Attachment A) through the following types of activities
and assistance:
1. Informational Qutreach
Display advertisements will be published periodically in local
papers of general circulation.
2. Inspection of Property
Upon request of the owner, individual housing unit inspections will
be made, and deficiencies pursuant to the Uniform Housing Code will
be noted. An inspection summary will be prepared for use as a
guide for corrective action.
3. financial and T -e -clinical Assistance
Financial and technical assistance will be offered to
owner -residents to encourage the rehabilitation of units to Uniform
Housing Code Standards to eliminate code violations.
Pnl ir'ipq
To encourage the rehabi l i taticn of owner occupied single-family
resic'ential structures co a 1F.z consistent with Uniform Housing
Code Standards, to ensure ne elimination of health and safety
violations, and to protect th- general public.
To provide a level of Fina cial anal technical assistance to low and
moderate income residents vqithin the east side target area of Lodi ,
in a manner consistent with the availability of program resources,
types of loans, and loan limitations.
To ensure the confidential treatment of applicant information
consistent with Federal and State laws and regulations.
To ensure that policies and procedural guidelines are consistent
with Federal and State program requirements.
El -;nibl e Rehabilitation 'Work Activities
1. Immediate Hazards to Life & Safety (EmervencK)
The following list list of rep< i rs are those which are deemed
necessary by the inspector to eliminate an immediate threat to 1 i f e
and safety of an individual. Such repairs may include, but not be
limited to:
a. Repairs to correct failing structural components of the
building.
b. Electrical repairs to correct conditions which are likely to
result in a fire or threaten life.
C. Plumbing repairs which involve exposed sewage, unsafe
drinking water and water heaters.
d. Mechanical system repairs.which involve conditions
likely to
result in a fire or leakage of gas which may result in
death.
e. Other repairs needed to correct conditions which
could be
life threatening.
2. General Housing Code and Health and Safety Code Items
The following list of repairs are those which are necessary
to
eliminate inadequate or improperly installed electrical,
plumbing,
heating fixtures and structural conditions which, though
not life
threatening, represent deteriorated and/or inadequate
housing.
Such repairs may include, but not be limited to:
a. Repairs necessary to eliminate Uniform Housing
Code and
Health and Safety Code deficiencies.
b. Repairs necessary to correct electrical defects,
plumbing
defects, and heating system defects.
C. Repair or replacement of poor structural conditions.
d. Additions or alterations to reduce overcrowding or eliminate
barriers to elderly/handicapped persons.
e. Installation of fixed fire detection devices and other
devices which prevent or minimize hazardous conditions or
situations.
3. General Have Improvements
a. Have security improvements including, but not limited to
deadbolts, window i ocl,s and alarm systems.
b. Energy conservation, weatherization improvements.
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4. Order of Priority
Priority is established by oraer of owner request. Applications
will be date stamped and numbered in the order received by San
Joaquin county. In consultation with the City Building Official,
the County Building Official nay amend the application order if the
applicant fails to complete the application process after two
notifications, or i f the City or County Building Officials receive
documented health or safety violations
5. Other Administrative Procedures
Loan Dispute and Reconciliation
The City of Lodi Co.i nuni ty Development Director, City of Lodi
Building Official, Program Manager of the Grants Management, Office
of San Joaquin County and the Deputy Director of Buildings of San
Joaquin County, will review all disputes associated with the loan
and rehabilitation activities. The decision of the program
administrators is final, with no further recourse at the tity or
County level. A loan applicant may appeal the administrator's
decision to the appropriate funding agency.
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HOUSING REHABILITATION
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RESOLUTION NO. 88-48
RESOLUTICY TO AKEND THE CITY OF LODI HOLENG REHABILITATION GUIDELINES
THEREBY MODIFYING THE CITY'S SINQ rFAMIL,Y HOUSING REHABILITATION PROGRAM
TO INCLUDE A STATEMENT OF KO INTEREST CHARGES ON DEFERRED PAYMENT LOANS
RESOLVED, that the City Council of the City of Lodi does hereby amend the City
of Lodi Housing Rehabilitation Guidelines thereby modifying the City's
Single -Family ifousing Rehabilitation Program to include a statement of no
interest charges on deferred payment loans; and that in accordance with the
Property Rehabilitation Loan Agreement between the City of Lodi and the Bank of
America, the Ci Ly shall notify the bank of the rates and terms for the City's
Deferred Payment Loans (0 interest)
Dated: April 5, 1988
I hereby certify that Resolution No. 88-48 was passed and adopted by the City
Council of the Ci L_y of Lodi in a regular meeting held April 6, 1988 by the
following vote:
Ayes : Council Members - Hinchman, Pinkerton, Reid, Snider and Olson (Mayor)
Noes : Council Members - None
Absent: Council Members - None
Alice M. Reimche
City Clerk
RESOLUTION NO. 88-38
RESOLUTION TO AMEND THE CITY OF LODI HOUSING REHABILITATIOW GUMELINFS
THEREBY MODIFYING THE CITY'S SINGLE-FAMILY HOUSING REHAEILITATION PROGRAM
TO INCLUGE A STAIRVIEN17 OF NO INTEREST CHARGES ON DEFERREC PAYMENT LOANS
RESOLVED, that the City Council of the City of Lodi does hereby amend the City
of Lodi Housing Rehabilitation Guidelines thereby modifying the City's
Single -Family Housing Rehabilitation Program to include a statement of no
interest charges on deferred payment loans; and that i n accordance with the
Property Rehabilitation Loan Agreement between the City of Lodi and the Bank of
America, the City shall notify the bank of the rates and terms for the City's
Deferred Payment Loans (0% interest)
Dated: March 16, 1988
I hereby certify that Resolution No. 88-38 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held March 16, 1983 by the
following vote:
Ayes : Council Members - Hinchman, Pinkerton, Reid, Snider and Olson (Mayor)
Noes : Council Members - None
Absent: Council Members - None
Alice M. Reimche
City Clerk