HomeMy WebLinkAboutAgenda Report - September 20, 2000 E-22CITY OF 1 COUNCIL COMMUNICATION
AGENDA TITLE: Reallocation of $60,800 in HOME Funds from the Housing Rehabilitation Program to
the Down Payment Assistance Program.
MEETING DATE: September 20, 2000
PREPARED BY: Community Development Director
RECOMMENDED ACTION: That the Council authorize the reallocation of $60,880 of our 2000-01
HOME Funds from the Housing Rehabilitation Program to the Down
Payment Assistance Program.
BACKGROUND INFORMATION: Each year, the City receives an allocation of HOME Funds from the
U.S. Department of Housing and Urban Development (HUD) for use
in providing housing assistance to a target population. Those funds
are usually split between Habitat for Humanity and the City of Lodi's
Housing Assistance Programs, which consist of a Low -Interest Housing Rehabilitation Loan Program for
owner -occupied and rental property rehabilitation, and a Low -Interest Down Payment Assistance Loan
Program for first-time homebuyers.
The Down Payment Assistance Program by far has been our best performer of the two programs. In the
past year and a half, we have provided funding for 22 first-time homebuyers and going into the 2000-01
Program year, there has been a list of 14 applicants waiting for the funding to come available. The
average loan amount for those 22 loans is $16,186.
For the 2000-01 Program year, we have allocated $75,000 toward the Down Payment Assistance
Program and $61,880 toward the Housing Rehabilitation Program, with the remaining $80,000 of our
HOME allocation going to Habitat for Humanity.
Unfortunately, the first four applicants on the waiting list have depleted that $75,000 allocation. As a
matter of fact, we have done an administrative reallocation to transfer $1000 from the Housing Rehab
Program to allow enough funding for the fourth applicant to complete their purchase.
In order to provide additional funding for as many of the remaining applicants on that list, we are asking
for Council Authorization to reallocate the remaining balance of $60,880 from our Housing Rehab
Program to the Down Payment Assistance Program.
APPROVED:
H. Dixon Flynn -- City Manager
HOME Fund reallocation SEPT2000.doc 08/30/00
We will still be able to fund Housing Rehabilitation projects for the remainder of the year through the
Community Development Block Grant (CDBG) Funds which have come back into the program as
income from previously funded Housing Rehabilitation projects. Currently, we have a balance of
$55,174.85 in that CDBG account and according to the County, who oversees our CDBG/HOME
Program, HUD requires that those funds be returned to use in the activity in which they were generated,
which is as stated earlier was Housing Rehabilitation.
FUNDING: 2000-01 HOME Funds
Konradt Bartlam
Community Development Director
Prepared by Joseph Wood, Community Improvement Manager
KBT1w
cc: Carrie Anderson, CDBG Program Coordinator
Jon Moore, S.J. County Community Development
HOME Fund reallocation SEPT2000.doc
RESOLUTION NO. 2000-170
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORZING
REALLOCATION OF 2000/2001 HOME FUNDS FROM THE
HOUSING REHABILITATION PROGRAM TO THE
DOWNTOWN PAYMENT ASSISTANCE PROGRAM
WHEREAS, each year the City receives an allocation of HOME Funds from the
U.S. Department of Housing and Urban Development (HUD) for use in providing housing
assistance to a target population; and
WHEREAS, those funds are usually split between Habitat for Humanity and the
City of Lodi's Housing Assistance Programs, which consist of a Low -Interest Housing
Rehabilitation Loan Program for owner -occupied and rental property rehabilitation, and a
Low -Interest Down Payment Assistance Loan Program for first-time homebuyers; and
WHEREAS, the Down Payment Assistance Program has been the better of the
two programs; and
WHEREAS, for the 2000-01 Program year, the City has allocated $75,000.00
toward the Down Payment Assistance Program and $61,880.00 toward the Housing
Rehabilitation Program, with the remaining $80,000.00 of our HOME allocation going to
Habitat for Humanity; and
WHEREAS, the $75,000.00 allocation has been depleted and staff recommends
reallocating the remaining balance of $60,880.00 from the Housing Rehabilitation Program
to the Down Payment Assistance Program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Lodi does hereby authorize the reallocation of $60,880.00 from the Housing Rehabilitation
Program to the Down Payment Assistance Program.
Dated: September 20, 2000
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I hereby certify that Resolution No. 2000-170 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held September 20, 2000, by the following
vote:
AYES: COUNCIL MEMBERS — Hitchcock, Land, Nakanishi, Pennino and
Mayor Mann
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2000-170