SR-6-G (86)
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RMD HOUSING AND REDEVELOPMENT TR F \HOUSING\SHARE\WPFILES\STAFFRPTiRehabmldyearrpt wpd
Council Meeting June 22, 1999 Santa MOnlca, California
To Mayor and City CounCil
From City Staff
Su bJect Recommendation to Authorize the City Manager to Execute a Second
Modification to Agreement No 6581 (CCS) with Wllldan Associates to
Increase the Contract Amount by $500,000 to ContmueAdmlnlstratlon of the
Program Through Apnl 9, 2000
Introduction
This staff report recommends that the City CounCil authorize the City Manager to execute
a Second Modification to Agreement No 6581 with Wllldan Associates to mcrease the
contract amount by $500,000 to contmue administration of the program through April 9,
2000, to and to cover lead-based paint remedIation on spec!fled propertIes
Background
On December 17, 1996, the City CounCil authorized the City Manager to negotiate and
execute a contract WJth W,lIdan ASSOCIates to Implement the PIlot Low Income ResidentIal
Repair Program The program Included three components 1) lead based paint testmg and
remediation, 2) home security, and, 3) residential rehabilitation After successful
Implementation of the new program, on May 12, 1998 the City CounCil authorized the City
manager to execute a modIfIcation to the Agreement with Wllldan ASSOCIates to extend the
term of the Agreement by an additional year through June 30, 1999 and to Increase the
contract amount by $400,000
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The funding limits and eligibility cntena for thiS program are summarized In Attachment A.
Full grants are offered In cases where the property owner and at least 51 percent of the
tenants qualify as low-income or moderate-Income Low-Income IS defined as 50% or less
of the Los Angeles area median Income as defined by HUD, and moderate-mcome IS
defined as 80% or less of the Los Angeles area median Income Matching grants of 75
percent are offered In cases where 51 percent of the tenants qualify as low Income but the
property owner does not For the lead-based paint component, prlonty IS given to SectIon
8 households with children SIX years old and under For the home security component,
priority IS given to senior Citizen households
Discussion
Attachment B describes how the $400,000 budget approved by the CIty Council forthe FY
98/99 Program has been used. A total of 101 units In 15 properties have been served
under the FY 98/99 Program budget, for an average of $3,210 per Unit Most of the FY
98/99 Program funds have been used for conventional home repairs such as plumbing,
roofing, and electrical repairs
While only 2 percent of the FY 98/99 Program funds were spent on lead-based paint
testing and remediation, fifty (50) Units were tested for the presence of lead hazards Lead
hazards were found In 16 of these umts. Because FY 98/99 Program funds were fully
committed and no longer available for remediation, funding for remediation In these 16
Units IS bemg recommended as part of the FY 99/00 Program
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Approximately 2 percent of the FY 98/99 Program funds were used for home secunty
Improvements In 12 Units Low partIcIpatIon In the home security component of the
program IS probably the result of the Community Development Block Grant (CDBG)
requirement that at least 51 percent of the tenants In a bUilding Income-qualify In order to
repair even one unit In the bUilding Given the limited scope and cost of these types of
repaIrs, many property owners and tenants may not conSider It worth their while to prOVide
the required Income documentation
Program funds are available CitYWide Dunng FY 98/99, 45 percent of the units served
were located In the PIca neighborhood, 25 percent were located in Ocean Park. 17
percent were located In Sunset Park, 12 percent were located In the WIlshire/Montana
area, 2 percent were located In Mid-Cities, and none were located In the Downtown
Attachment C proVides before-and-after photographs of a sampling of projects served by
the program
Use of Additional Proqram Funds
As part of the City Proposed FY 99/00 Budget, 5500,000 In CDBG funds has been
recommended to continue adminIstration of the Low Income ReSidential Repair Program
ThIS amount represents an Increase of $200,000 over the FY 98/99 budget for the Low
Income ReSidential Repair Program The additional funds are available from MERL
Program Income and are recommended for several reasons The demand for the program
IS high Wllldan has a waltmg list of 22 properties containing 126 umts Dunng FY 98/99,
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the average repaIr subsidy was $3,300 per umt Based on this average, If all the properties
on the waiting list qualify, repair costs could reach $416,000
In addition, lead-based paint testing conducted as part of the FY 98/99 program
determined that 3 properties including a total of 16 Units required remediation The
estimated cost of thIS remediatIon IS $50,000
The following chart summarizes the estimated demand already known for FY 99/00
Type of Repairs Estimated Cost
Program Waiting List $416,000
Lead-based paint Remediation $ 50,000
TOTAL $466,000
Other FY 99/00 Program Features
A one-time seminar will be offered to property to proVide education about fead-based paint
hazards and to market the lead-testing and remediation component of the program
Program GUidelines will be changed to limit the number of contracts let to any single
contractor untIl work under the contract IS completed ThiS should prevent contractor
delays which were experienced on some projects dUring FY 98/99
Financial/Budgetary Impacts
The proposed FY 99/00 Budget Includes funding of $500,000 In CDBG funds for thiS
program Funds are available through the follOWing account 01-620-264-572150
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As reqUired by HUD, a separate recommendation will be presented to the City Council on
June 22, 1999 to approve the Proposed FY 99/00 One Year ActIon Plan to allocate
$500,000 In CDBG funds to the Low Income Residential Repair Program
Recommendations
Staff recommends that the City Council authonze the City Manager to execute a Second
Modification to Agreement No 6581 (CCS) with Wllldan Associates to Increase the
contract amount by $500,000 to continue administration of the Low Income ReSidential
Repair Program through April 9, 2000, contingent on passage of the proposed FY 99/00
Budget
Prepared by Jeff Mathieu, Director of Resource Management
Bob Moncnef, HOUSing Manager
Tad Read, HOUSing Coordinator
Attachments A- Program GUidelines Summary Table
B- Use of FY 98/99 Program Funds
c- Before-and-After Photographs of Properties Served by Low
Income ReSIdentIal RepaIr Program
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ATTACHMENT A
Attachment A
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ATTACHMENT B
Attachment B
Use of FY 98/99 Program Fu nds
This Attachment describes how the $400,000 budget approved by the City Council for this
program for Fiscal Year 1998/99 has been used
Number of Properties and Housing Units Served
Table I shows the program dollars committed and number of housing Units served under
each of the program's three components for FY 98/99
Table I
Status of Grants for FY 98/99 Budget of $400,000
as of 6/1 0/99
PROGRAM COMPONENT HOUSING UNITS SERVED 1
# Units $$ Committed
Lead Based Paint Testing 50 $5,550
Home Security $5,240
12
Rehabilitation $313,485
99
TOTAL N/A1 5324,275
Because many properties are undergOing repairs under more than one Program component, summing these numbers
would result In double-counting
The table shows approximately 2% of the FY 98/99 funds allocated for capital expenditures
have been used for lead-based paint testmg, approximately 2% of the funds have been
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used for home secunty, and, 97% have been used for conventIonal home repaIrs such as
plumbing, roofing, and electrical repairs A total of 101 units In 15 properties have been
served under this year's budget, for an average of $3,210 per unit ApproXimately 19
percent of the FY 1998/99 program budget of $400,000 has been used for administrative
costs HUD allows up to 20 percent of the funds to be used for administrative purposes
The disproportionate use of program funds for moderate rehablhtatlon--as opposed to lead-
based paint testmg/remedlatlon and home securltY--ls a result of a strong demand for
repairs of major bUilding systems such as roofing, plumbing, and electrical systems
While only 2 percent of the FY 98/99 Program funds were spent on lead-based paint
testing and remedIation, fifty unIts were tested for the presence of lead hazards Lead -
based paint hazards were found In 16 of these units Because FY 98/99 Program funds
were fully committed and no longer available for remedIation, funding for remediation In
these 16 units IS being recommended as part of the FY 99/00 Program
Low participatIon In the home security component of the program IS probably the result of
the Community Development Block Grant (CDBG) requirement that at least 51 percent of
the tenants In a bUlldmg be qualifying lOW-income households In order for even one umt
In the buddIng to receIve funds for home security Jmprovement or other repaIrs. Given the
limIted scope and cost of these types of repairs, many property owners and tenants may
not consider It worth their while to proVide the required Income documentation
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Geographic Distribution of Funds
With City Council approval of the Low Income Residential Repair Program In December,
1996, program funds were made available to quallfymg lOW-income households citYWide
Table II shows the number and percentage of properties served by the FY 98/99 program
by neighborhood
Table II
Geographic Distribution of Properties and Units Served
# Properties % of # Units % of Units
Properties
Downtown 0 0% 0 0%
Mid-Cities 1 6% 2 2%
Ocean Park 3 19% 25 25%
Pica 6 38% 45 45%
Sunset Park 3 19% 17 17%
Wlshre/Mont. 3 19% 12 12%
TOTAL 16 100% 101 100%
Demographic Profile of Properties and Units Served
Among the 101 households served by thiS year's fundmg, at least 63 households (62%)
qualify as lOW-Income It IS possible that more of the households served by thiS year's
program are low Income, but because HUD only requires that 51 percent of the Units In the
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property Income-qualify, and because some households are reluctant to report theIr
Income, thIs mformatlon IS not known
Among the 101 households served this year, 39% were reported female-headed and 11%
were reported elderly (62 years of age or older) In terms of race and ethnlclty, 33% were
reported African-American, 7% were reported ASian/PaCific Islanders, and 22% were
reported white Only 2% were reported "Hispanic", but this may not account fully for the
number of Latmo households served Since Latino households often self-report In another
category, such as white The percentages do not add up to 100% because the households
were asked, but not reqUired, to report on race/ethnlclty
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ATTACHMENT C
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BEFORE
Address:1702 1714 Michigan Avenue Type of Rehabilitation
Number of Units, 7 Lead-based paint remediatIon'
Grant Amount 513,059 Including replacmg all windows and
FY 97/98 encapsulating window frames.
Replace Roofing.
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1 - ~ ~ . ij( I Grant Amount" $34.868
i ~".!!;,~ .'~ \~I' FY 97/98
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Type of Rehabilitation:
General Rehabilitation.
Bathroom remodel
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1t..ddl'ess: ,\1'\7-'\'\ \C< \~c\ud\~9 'elllac,~g all "".,do'"
NUtt\ber of Un-its' 7 .",,"I"'u\.t\~g w\~d....I"''''''
Gral'\\ p..rt\oun-t', S~Q,730
f'( 97198 /
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Address "903 7th Street
Number of Units. 1 B
Grant Amount- $32,000
FY 97198
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Tvoe of Rehabilitation
Lead-based paint remediation;
Kitchen remodel. including replacmg
cabinets. counter tops. and flooring
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BEFORE
Address 903 7th Street Type of Rehabilitation:
Number of Units 18 General Rehabilitation:
Grant Amount. $29.960 Rewire entire bUild mg.
FY 97/98
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Address: 1809-1811 20th Street Type of Rehabilitation:
Number of Units: 3 Lead-based pamt remediation'
Grant Amount: $15,263 including replacing all windows,
FY 97/98 encapsulatmg wmdow frames and
painting house trim
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Address. 1809-1811 20th Street
Number of Umts' 3
Grant Amount 515,263
FY 97/98
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Type of Rehabilitation'
Lead-based paint remediation, t I
including replacing all windows, r - !
encapsulating window frames and r.
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painting house trim ,
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Address.iBiS 18th Street Type of Rehabilitation;
Number of Units: 3 Lead-based paint remediation:
Grant Amount: $23,628 Including replacing all wmdows and
FY 97/98 encapsulatmg window frames
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Address 1818 18th Street Type of Rehabilitation:
Number of Units' 3 lead-based pamt remediation'
Grant Amount: $23,628 including replacing all windows and
FY 97/98 encapsulating window frames
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Address.2323 14th Street Type of Rehabilitation:
Number of Umts 11 General Rehabilitation:
Grant Amount: 536,109 Replumb entire bUlldmg
FY 98/99
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Address 1925-1933 20th Street Type of Rehabilitation:
Number of Umts: 34 General Rehabilitation'
Grant Amount $78.150 Replumb entire bUilding,
FY 98/99 Replace dryrot wood on building.
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Address.2240 22th Street TVDe of Rehabilitation:
Number of Units: 1 General RehabilitatIon.
Grant Amount: $4,000 Repair plumbing in kItchen
FY 98/99 Repair leaking roof.
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