SR-106-017-02 (3)
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Santa Monica, California, September 4, 1979
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TO:
Mayor and City Council
SEP 1 1 1979
FROM: City Staff
SUBJECT: Housing Commission Recommendation Concerning
Housing Rehabilitation Program
Introduct ion
This report transmits the Housing Commission's recommendation that the Single
Family Housing Rehabilitation Program be terminated so that the funds al10-
cated for rehabilitation can be used in another manner.
Backg round
1. Program Development. City Council approved the adoption of the Single
Family Housing Rehabilitation Program September 27, 1977, and the program be-
came operational in January, 1978. The purpose of the program has been to
assist low and moderate income homeowners in the repair and maintenance of
their housing, and to thereby enhance the character of existing neighborhoods
throughout the City.
Initial develop~ent of the program responded to a number of factors. After
Community Development Block Grant (CDBG) funds became available to the City,
Council allocated the first housing rehabilitation set-aside of $100,000 in
the 1976-1977 CDBG program year. The program was then developed around para-
meters established by the intent of the Housing and Co~munity Development
program which, in sumMary, focuses on assisting persons of low and moderate
incomes, and in aiding the prevention or elimination of slums or blight through
systematic and sustained actions. Goals and objectives raised in the City1s
Housing Element also speak to a rehabi 1 itation effort: "Encourage rehabi 1 i-
tat ion of existing housing to enhance the character of existing neighborhoods
lo~
SEP 1 1 197~
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TO: Mayor and City Council
-2-
September 4, 1979
throughout the City.11
The Program which was initiated has three major components.
o Below Market Interest Rate loans at six or seven percent.
o No interest, deferred loans in special circumstances.
o Materials-only grants if homeowners do the repair work themselves,
or if the Handywomen Program is utilized.
To be eligible, applicants must be single family or duplex owner-occupants,
and meet established income criteria.
2. Activit)', to Date. Eighteen formal applications have been submitted
to the City out of approximately 100 which have been either mailed out to
potential applicants who called in, or given out during publicity outreach
efforts. Of the 18, 8 housing rehabilitation jobs have been completed with
an expenditure of $38,144.62; 4 more applications are active (one is ready
to go to bid, one is in the prel iminary work order stage, and two were
recently submitted and accepted as eligible) with an anticipated expenditure
of $50,000; and, 6 are in a "drop/inel igible/indefinite hold" category.
Of the 12 active or completed applications, 6 fall within the lower income
category and 6 within the moderate category, meeting City policy which stlp-
ulates that half of the loans must be made to households falling into the
lower of the income categories. Additional demographic statistics indicate
the following'
o Four of the households (33%) are elderly;
o Two of the households (17%) are both minority and large families
of five or more members; and
o Seven of the households (58%) are female head of household or
single female households.