SR-6-E (37)
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P::B 11 '992
BS:CE:JG:can:homestf.mem Santa Monica, Californfa -
Council Meeting: February 11, 1992
To: Mayor and city council
From: City Staff
Subject: Recommendation to Adopt a Resolution and Authorize the
City Manager to Apply for Department of Housing and Urban
Development FY 1992 HOME Funds
INTRODUCTION
On January 13, 1992, the united States Department of Housing and
Urban Development notified the City of santa Monica that it is
eligible to receive $1,091,000 in federal HOME Funds for Federal FY
1992. In order to receive the funds the city must submit an
application by February 27, 1992. This staff report provides a
description of the HOME program, potential uses for the funds and
a recommendation that the city council authorize the city Manager
to apply for the funds.
BACKGROUND
The HOME Program was created under Title II of the National
Affordable Housing Act of 1990. The HOME program was created to
provide a new source of federal funds to expand the supply of
decent, affordable housing, particularly rental housing, for low
income households. On January 13, 1992, the united States
Department of Housing and Urban Development (HUD) announced the
allocation to all jurisdictions entitled to a formula allocation.
The City of Santa Monica is eligible for $1,091,000. b-E
~EB 11 1992
DISCUSSION
The National Affordable Housing Act of 1990 does not require that
the HOME funds be designated for any specific activity. Rather
each local jurisdiction is given a great deal of flexibility in
deciding what uses, whether new construction, rehabilitation,
substantial rehabilitation, they will permit. However, HOME funds
must be targeted to benefit lower income families. At least 90% of
the funds must be invested in units that are occupied by families
whose incomes do not exceed 60% of the median family income. The
remaining 10% must be invested in units occupied by families
earning below 80% of median. Additionally, rents cannot exceed 30%
of the income of a family earning 65% of the area median.
HOD also designates a fixed amount of each jurisdiction's formula
allocation which must be set aside for new construction or
substantial rehabilitation. Santa Monica, due to its tight housing
market, is required to set aside $734,000 for new construction and
substantial rehabilitation.
In order to receive these funds, the City of Santa Monica must have
an approved Comprehensive Housing Affordability Strategy (CRAS) and
must file an application that includes a general description of the
City'S intended use of the HOME program funds. In January, 1992,
HOD approved the City's Comprehensive Housing Affordability
strategy. Thus, the city has completed all the necessary
requirements for receipt of the funds except for the filing of the
application. It is anticipated that the funds will be received
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within 60 days after the filing of the application.
BUDGETARY IMPACT
It will be necessary to establish a new appropriation in the amount
of $1,091,000 to permit expenditure of the funds. These funds will
be deposited in Deferred Revenue Account #20-000-000-00000-9870-
04714. Expenditures will be made to the CIP account #20-720-264-
20092-8900-99344. Upon approval of a project, funds will be
transferred from the Deferred Revenue Account to Revenue Account
#20-200-264-00000-0495-10000.
RECOMMENDATION
It is recommended that the city council adopt a resolution and
authorize the City Manager to apply for Department of Housing and
Urban Development FY 1992 HOME funds and to further enact an
appropriation permitting expenditure of the funds when they are
received.
Prepared by: Barbara Stinchfield, Director
Chuck Elsesser, Housing Program Manager
Johanna GUllick, senior Development Analyst
community Development Department
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RESOLUTION NO. 8354{CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
APPROVING THE SUBMISSION OF AN APPLICATION FOR FY 1992 HOME
FUNDS.
WHEREAS, the Department of Housing and Urban Development is
currently accepting applications from qualified jurisdictions for
FY 1992 Home Funds which can be used for the construction or
rehabilitation of affordable housing, and
WHEREAS, the City of Santa Monica is a qualified jurisdiction
and proposes to apply for $1,091,000 in HOME Funds,
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
RESOLVES AS FOLLOWS:
SECTION 1. The City Council approves the submission of an
application for $1,091,000 in FY 1992 HOME Funds.
SECTION 2. The City Manager is authorized to submit an
application on behalf of the city of Santa Monica and to execute
the contract if the application is approved.
SECTION 3. The Secretary shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM
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Robert M. Myers
City Attorney
:resccs
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Adopted and approved this 11th day of February, 1992.
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Mayor 'ro Tempore
I hereby certify that the foregoing Resolution No. 8354 (CCS)
was duly adopted by the City council of the City of Santa Monica
at a meeting thereof held on February 11th, 1992 by the following
Council vote:
Ayes: Councilmembers: Holbrook, Katz, Olsen, Vazquez,
Zane, Abdo
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Genser
ATTEST:
j~ ~r;d
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......--- City Clerk /