HomeMy WebLinkAboutAgenda Report - December 21, 1988 (97)TO:
FROM :
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C 0 b N C I L
THE CITY COUNCIL.
THE CITY MANAC ERS OFFICE
GO
COMMUNICAT.3N
COUNCIL MEETING DATE: DECEMBER 21, 1988
SUBJECT: TRANSFER OF RESPONSIBILITY FOR HOUSING REHABILITATION FROM THE CITY OF
LCC( TO SAN JWQUIN COUNTY
RECOMMENDED ACTION That the City of Lodi transfer the funds allocated to the
Loi Housing Rehabilitation Program to the San Joaquin County Housing
Rehabilitation Program and that the City Council authorize San Joaquin County to
perform housing rehabilitation in the City of Lodi on the City's behalf with the
funds the City contributes to the San Joaquin County Housing Rehabilitation
Program.
BACKGROUND PsTORMATION: The City of Lodi currently funds its Housing
Rehabilitation Program with Community Development Block Grant (CDBG) monies
provided by the U.S. Department of Housing and Urban Development (HUD). HUD gives
an annual grant directly to San Joaquin County. The County, in turn, allocates a
portion of that grant to each of the entities under its jurisdiction, including
Lodi, through an Urban County Agreement. San Joaquin County also uses CDBG money
to fund their own Housing Rehabilitation Program.
The "urban county" relationship between Lodi and San Joaquin County places both
entities under certain restrictions as set forth in the Housing and Community
Development Act of 1974. In this regard, HUD has recently stated their concern
with Lodi having a housing rehabilitation program in the presence of a
rehabilitation program at the County. Even though these two programs are
different, HUD's interpretation of Section 106(b) of the Act places the
responsibility of administering a comprehensive program of any type in an urban
county to the urban county (i.e. San Joaquin). Jimmy Prater, Program Manager with
the HUD Regional Office in San Francisco, in a recent letter to San Joaquin County
and the City o f Lodi says:
"... the urban county is considered to be a specially
constituted single entity, created by statute to receive one
entitlement grant, and that the county, as administrator of
the grant, must have full authority under state law or
cooperation agreements to carry out all essential,activities.
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The City Cound 1
December 21, 1988
Page Tvw
Therefore, because this matter has only recently come to light, ;IUD is requiring
Lodi to comply with this provision by transferring the approximately $318,000
currently allocated tc the Lodi Housing Rehabilitation Program to the San Joaquin
County Housing Rehabilitation Program. henceforth, San Joaquin County will be
responsible for providing rehabilitation loans for the City of Lodi from these
funds and whatever funds Lodi may allocate to this program in future fiscal years.
The Neighborhood Preservation Division of San Joaquin County has tentatively
agreed to assume the responsibility of providing rehabilitation lcans for the City
of Lodi. in fact, they have been handling the bulk of the administration and
processing for Lodi's program since its inception. From an administrative
standpoint, then, switching over to the San Joaquin program will not result in a
noticeable change for the City.
San Joaquin's program, however, differs somewhat from Lodi's. Their loan limits
are generally higher and their interest rates for amortized loans are lower. In
addition, their program -overs not only single-family owner -occupied homes, but
rental and multi -family ti,: •ing units as well, although the former type receives
the highest order of priority. Finally, the County's banker is Security Pacific,
whereas Lodi has worked with Bank of America.
CITY COUNCIL
JAMES W PINKERTON. Jr, Mayor
JOHN R. (Randy) SNIDER
Mayor Pro Tempore
DAVID M. HINCHMAN
EVELYN M- OLSON
FRED M. REID
December 6, 1988
THOMAS A. PETERSON
CITY OF LODI City`Manager
ALICE M �2EtnnC.fE
CITY HALL. 221 WEST PINE STREET City Clerk
CALL BOX 3006 BOB MCNATT
LODI, CALIFORNIA95241-1910 City Attorney
Mr. Roscoe Brownfi el d
Bank of America
31 South School Street
Lodi. California 95240
(209)334-3634
TELECOPIER : Ems) 333-6795
SUBJECT: LODI HOUSING REHABILITATION PROGRAM LOAN AGREEMENT
Dear Roscoe:
As a follow-up to our meeting yesterday, I am enclosing a copy of the
Council Communication that I will be sending to the City Manager for
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possible consideration by the City Council on Dec,mber 21, 1988. This
communication outlines the U.S. Department of Housing and Urban
Development's (HUD) mandate to us regarding the Lodi Housing
Rehabilitation Program. HUD is requiring all housing rehabilitation
activities within the Urban County to be coordinated and administered
through a -single program (in this case, the San Joaquin County Housing
Rehabilitation Program). Unfortunately, the City does not have any
descretion in this matter; Lodi must comply or risk losing future
federal funding., For these reasons, the City of Lodi will not renew -
its loan 'agreement with Bank of America when it expires December 10,
1988.
Let me say that we have been extremely pleased with the level of
service provided by your bank. The:action we must'..take is in no way
-reflective`Of-you or Bank of America. Jim Schroeder and myself.are
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truly appreciative of yours and Michele Plummer's willingness and
interest in our Program. When the Urban County Agreement expires. in
1991; the City may again 'consider: establishing :itsown" housing`
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rehabilitation program, in which case, -Bank of America will he given,,.
the highest of recommendations.
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If we may be` of any: service to. you in the future, .feel free to call'
e they Jim or myself at, (209).333-6711 Thanks again for your help'.
Sincerely,
NORMAN !. HOM
Community Development Block Grant Coordinator
enclosure
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