SR-407-004-01 (4)
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Santa Monica, California, February 28, 1979
TO:
Mayor and City Council
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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
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MAR 1 3 1979
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Mayor and City Council
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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.
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Mayor and City Council
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February 28, 1979
3. It is proposed that the materials-only grants limit be raised to $2,000.
Prepared by: Carol DeLay
CD.mh