SR-300-003
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JAH 2 R 1986
C/ED:HSG:AS:wp
CIty CouncIl MeetIng 1/28/86
Santa MonIca, CalIfornIa
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TO: Mayor and CIty CouncIl
FROM: CIty Staff
SUBJECT: RecoIT.n.endatIon to Adopt a ResolutIon AuthorIZIng the
CIty Manager to Subn.It a prograrr, ElIgIbIlIty ApplIcatIon
and to Execute a Standard Agreenlent and Any An.endn.ents
Thereto or Other Docu~ents Necessary to Make Loans Under
the State of CalIfornIa Deferred Pay~ent RehabIlItatIon
Loan Prograp,
INTRODUCTION
ThIS
report
tranSIl.I ts
Infot'n.atIon
regardIng
the
State of
Call forn I a DepartIllent of Haus 1 ng and CalT,JT,un 1 ty Deve lopnlent
Deferred
Payrr.ent
RehabIlItatIon
Loan
Prog raIl..
The
report
recorr~~nds that the CIty CounCIl adopt a resolutIon authorIZIng
the Cl ty Manager to take the necessary legal actIons to subn,I t an
appllca tion and execute contrac ts WI th the DepartIT,ent of Haus Ing
and Cop.ll,unI ty Development to enable the CI ty to partiCIpate In
thIS progralll.
DISCUSSION
The Call forn 1 a Departrr.ent of Hous Ing and Corr.n.un 1 ty Deve loprr,ent
has recently Issued an InvI tatlon to local governIT,ent entI tIes to
SUbffiIt applIcatIons for the Deferred Pay~ent RehabIlItatIon Loan
Progra~ (DPRLP). The DPRLP progra~ gUIdelInes are sI~Ilar to the
local prograffi guidelines adopted by the CIty CounCil and
Redevelop~ent Agency for the PICO NeIghborhood HOUSIng Trust Fund
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6-p
JAN 2 oS 1986
and CItYWIde HO~ng AcqUISItIon and Rehab~tation prograTh. The
DPRLP progran, wIll n,ake deferred loans of up to thIrty years to
elIgIble borrowers for the rehabIlItatIon of rental property, In
conJunc tIon WI th the CIty' 5 prog ran,s. The rr,a X In,UIl. loan an,ount 1 S
$10,13130 per unit,
rehabIlItated wIth
or $200,000 per
DPRLP loans Thust
proJect. UnIts that are
be rented at affordable
levels to low and Thoderate InCOThe households.
The Departrrlent of HOUSIng and COlTIIT,UnI ty Developn,ent IS currently
seekIng PrograTh ElIgIbIlIty ApplIcatIons WhICh descrIbe the
current hOUSIng rehabIlItatIon progranLs, and have the capacity to
use addItIonal funds of each Interested localIty. Upon reVIew and
approval of these applIcatIons the Departnlent WIll execute
Standard Agreen,ents WI th each localI ty, and WIll then accept
loans for specifIC proJects as constructIon plans and private
flnancI ng arrangen,ents are con,pleted. Loans WIll be Iltade on a
"fIrst-corrIe, fIrst-served" baSIS untIl all funds have been used,
but no IT.ore than $2130,000 WIll be loaned In anyone CIty.
The DPRLP program funds can be used to stretch the CIty'S llIT.lted
hOUSIng trust funds to prOVIde addItIonal hOUSIng opportunItIes
for low and IT.odera te I ncoIT.e res Idents. The prograIt, underwr i tlng
and tenant occupancy requ lrerr,ents conforIt, to the Cl ty' s prograrrL
gUIdelInes.
ThIS conforn.Ity It,eans that leveragIng the CIty'S
funds WIth DPRLP WIll not be dIffIcult for staff or local lenders
who are currently work 1 ng WI th the eXl st i ng prog ran,s. Therefore,
It IS recon,PLended that the CIty CounCIl authorIze the CIty's
partICIpatIon In the Deferred Payn.ent RehabIlItatIon Loan
Prograrri.
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BUDGETARY / FIN~IAL IMPACT
.
If the CltylS prograu, ElIgIbIlIty ApplIcatIon IS approved, and
the Standard Agreement IS executed, the program loan funds WIll
be depOSIted wIth the CIty by the DepartIT,ent of HOUSIng and
COIT,n,Unl ty Developn,ent as specI fIC loans are approved and funds
are needed. The CIty WIll receIve and then dIsburse the funds, so
a revenue account and expendl ture approprIatIon n.ust be
establI shed. The rr,a XIIT,U[T1 aIT,ount that the Depar tn,ent WIll allocate
to the CI ty under the Standard AgreeIl,ent 1 S $200,000. Therefore,
It IS recorr,IT,ended that the CIty CounCIl dIrect staff to establIsh
a revenue account for Deferred Pay~ent RehabIlItatIon Loan
Prog raIT, Funds, and author I ze a budge t appropr I atIon of up to
$200,000 In progran. funds. These funds can be approprIated In the
CItYWIde HOUSIng AcqUISItIon and RehabIlItatIon Progran, for use
on elIgIble rehabIlItatIon proJects.
RECOMMENDATION
It IS recornIT,ended that the CIty CounCIl:
1. Adopt the attached resolutIon authorIzing the CIty Manager to
submIt a Deferred Payment RehabIlItatIon Loan Program
applicatIon, and to execute a Standard Agreement and other
docurr.ents as necessary to operate the PrograIT,.
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2.
If
funds
.
are approved
for
loans
In 'e
CIty
under
thIS
progran. :
A. AuthorIze staff to establIsh a revenue account for
Deferred Pay~ent RehabIlitatIon Loan Progra~ Funds; and
B. AuthorIze the expendIture of DPRLP funds by approprIatIng
$230,000 for use
In the CItYWIde HousIng AcqUIsItIon and
RehabIlItatIon Progra~, as descrIbed In thIS report.
Prepared By: Ann SewIll, HousIng Program Manager
DepartnLent of COItIIl.un I ty & ECOnOItLl c DevelopItLent
Attachn.ent: CIty CounCIl ResolutIon
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VOTE. AffirmatIve: (;-0
Jl ~egative:~_
~ Abstain~
:J
~ Absent.
~ ~ PROOF VOTE~ WI TH ANOTHER PERSO?-' BEFORE ANYTHING
DIS1KIBUTION~ uKIGI~AL ~Q De signeu, sealed and filed in Vault.
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ALL FOR CITY C~ERK'S ACTION
ORDINANCE #
.
BEFORE DISTRIBUTION CHECK CONTE~T OF
DISTRIBUTION OF RESOLUTION # ?r 5/
Council Meeting Date ~ 11)/ C:,
C-p ,
/Yu"
L
Introduced;
Agenda Item #
Was It amended?
Adopted~
AIJ'lAYS PUBLISH ADOPT.ill ORDlNANCFS*
*cross out Attorney's approval
NEWSPAPER PUBLICATION (Date:
)
)
Department orIgInating staff report (
Nanageflent Serv.~~e~Lynne Bazr~tte'.urdinances only
~--
Agency mentioned In document or staff report
(cert i fied 1)
Subject file (agenda packet) 1
Counter file 1
Others:
-
Airport
ParkIng Auth.
AudItorum
Personnel
Building Dept.
Planning
O':"uiut..1TU ty and Econamc Cev.
FInance
J
Police (en-
forcemen t?)
Purchasing
.
Fl.re
Recr/Parks
General Servo
Transportation
Ll.brary
Treasurer
Manager
SEND FOU~ COPIES OF ALL ORDINANCES TO:
CODfD SYSTEMS, Attn Peter Macl'earj,e
12_9 1,!ain rt.!'''et -
AV0~1 ~~w Jersey_077l7.
SEND FOUR COPIES OF ALL nRnTNANr._F.~ _TO:
D~l;l..rp. ~1yrlck
SANTA MONICA MUNICIPAL COURT
(.725 MAIN STREET, Room 118
SA~TA MONICA, CA 90401
*Check Code Sect10ns before sendmg.
TOTAL COPIES
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RESOLUTION NO.7151
(CCS)
(CITY COUNCIL SERIES)
I
i
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA AUTHORIZING THE SUBMITTAL OF A PROGRAM
ELIGIBILITY APPLICATIONt THE EXECUTION OF A STANDARD
AGREEMENT AND ANY AMENDMENTS THERETO, AND OTHER
DOCUHENTS NECESSARY TO MAKE LOANS UNDER THE STATE OF
CALIFORNIA DEFERRED PAYMENT REHABILITATION LOAN PROGRAM
WHEREASt the State of California Department of HousIng and
Corr.rr,unl ty DeveloplT,ent has Issued an Announcerr.ent of FundI ng
AvailabIlity under the Deferred Payrr,ent RehabilItatIon Loan
Pragran, "0pen WI ndow" fundi ng process; and
~
WHEREAS, _pursuant to Section 5066@-S0670 of the California
Heal th and Safety Code, the State of CalIfornIa DepartIT,ent of
HousIng and COIT"tET,llnl ty Developn.ent IS authorIzed to provide funds
for the rehabIlItatIon of housIng; and
WHEREAS, the CI ty of Sa nta .-1onI ca, here 1 nafter referred to
as the "Local Agency" IS a local publIC entIty organIzed under
the laws of the State of CalIfornIa and IS elIgIble to
partIc Ipa te 1 n the Deferred Pay;r,en t Rehab i 1 ita t Ion Loan prograIT,
(DPRLP); and
WHEREAS, the Local Agency oesIres to apply and, If accepted,
WIll package loans to be SU!J.[l,l tted to the Departrrlent of HOUSIng
and COIT,(T,llOI ty DeveloE){",ent.
The total a~ount of such loans
approved by the Depart~ent shall not exceed $200,000.
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NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1.
Should the CIty of Santa Monica's program
EligibilIty ApplicatIon for partIcIpatIon in the DPRLP be
accepced, the Local Agency hereby certIfIes that all uses of the
funds will be in compllance with DPRLP RegulatIons, the
GuidelInes thereto, and the Standard Agree~ent governIng the use
of programs funds.
SECTION 2.
The Clty Council of the CIty of Santa MonIca
authorIzes the CIty Manager or an authorIzed desIgnee Into a
Standard Agreerr,ent WI th the Depart!llent of Houslng and Con,ET,uni ty
Deve loprr,en t and execute other docurr,ents requ I red to cOnSUll,LT,a te
this transactIon and operate the DPRLP.
SECTION 3. The CIty Manager: 13 f'C.rther aU':;"orlzed to SUbITlIt
loan packages to the Depa:r tn.ent 0 f Hous 1 ng and Corr,rt,Unl ty
Developnlent for approval and to exeCl.:te all ::ocup,ents requIred to
{f,ake and record each Indl vIdual loan appro~led by the departrr.ent
under the DPRLP to Inclvld~al Gorrowers.
SECTION 4. The Clty Clerk snaIl certIfy to the adO?tlon of
thls resolutlon and thenceforth and thereafter the sa~e shall be
1n full force and effect.
Approved as to forn,:
~ ~. '---(r-
Robert M. Myers
CIty Attorney
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Adopted and approved this 28th day of January, 1986.
lk~ t ~
/ Mayor
I hereby certify that the foregoIng Resolution No. 7151(CCS)
was duly adopted by the City CouncIl of the CIty of Santa MonIca
at a meeting thereof held on January 28, 1986 by the folloWIng
CounCIl vote:
Ayes: Councilmembers: Conn, JennIngs, A. Katz, H. Ka t z ,
Zane and Mayor Reed
Noes: Councllmembers: EpsteIn
Abstain: Councilmembers: None
Absent: Councilmembers: None
ATTEST:
e~y
erk -
Asst. Cr