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SR-407-004-01 (4) -- e !/tFj----t')p!/ _~ / Santa Monica, California, February 28, 1979 TO: Mayor and City Council loft FROM. City Staff MAR 1 3 1979 SUBJECT Housing Rehabilitation Program Proposed Policy Changes Introduction This report transmits the Housing Commission's proposed policy changes to the Housing Rehabil itation Program, and recommends that City Council approve the requested changes. Backg round The City1s Housing Rehabilitation Program became operational a year ago January with two primary objectives. (1) to assist low and moderate income homeowners in the process of upkeep and maintenance of their homes; and (2) to enhance the character of eXisting neighborhoods through improvement to the City's housing stock. Based on this past year's experience, and with these two stated objectives in mind, this report discusses conclusions to date and makes recommendations for program improvement. Discussion Program activity has progressed at a steady and moderate pace, with the commitment of $37,000 in a combination of rehabilitation loans, Handywomen activity, and emergency grants The benefits to each recipient household have been Important, not only in the dollar amount of financial assistance, but in the total range of services provided in the course of the rehabilitation process. A number of program policies were established because of an original concern about the best use of limited funds in helping the greatest number of households. Since program experience has eliminated the need for this concern. it would appear beneficial to change those It) f) MAR 1 3 1979 ~ . - Mayor and City Council -2- February 28. 1979 policies which in the end restrict the rehabilitation activity of some participants. Three program areas are recommended for modification. o It is recommended that the rehabilitation loan limit be raised to 515,000. While most participants do not need this amount as a maximum loan, those who do must be restrIcted in their rehabilitation efforts. About 15 percent of program participants need more than the present limit of $10,000 for work on their homes. o It is recommended that Deferred Loan limits be raised to $8,000 from the present amount of $3,000. More stringent controls would stIll apply to these loans. including income requirements and adherence to the qualification of health and safety items only. o It is recommended that materials-only grants, which ~rork mainly in conjunction with the Handywomen Program, be raised to a maximum of $2.000. The cost of materials has risen substantially over the past year, and the present limit of $500 acts as a constricting factor In more than 50 percent of the cases handled. One additional program policy change recommended by the Housing Commission is to expand Housing RehabilItation to owner-occupied apartment complexes which contain no more than six units. Specific criteria for this program modification are stIll under study by staff and the Commission, and will be presented to Council at a tater date. Recommendation Housing Rehabilitation has become one means of assisting low and moderate income homeowners in properly maintaIning their houses, as well as improving the housing stock of the community, In order to better meet the needs of those who do participate In the Rehabilitation Prograw. the Housing Commission recommends the following program policy changes. 1. It is recommended that the regular Rehabilitation Loan limit be raised to $15.000. 2. It is recommended that the Deferred Loan limit be raised to $8,000. ~ -. It Mayor and City Council -3- February 28, 1979 3. It is proposed that the materials-only grants limit be raised to $2,000. Prepared by: Carol DeLay CD.mh