SR-407-009 (8)
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Redevelopment Agency Meeting: 7/14/87
Santa Monica, California
TO:
Chairperson and Redevelopment Agency Members
FROM:
Agency Staff
SUBJECT:
Recommendation to Approve Earnest Money Contract
with Community Corporation of Santa Monica
INTRODUCTION
This report transmits for approval the standard contract for use
of "earnest money" funds from the City-wide Housing Acquisition
and Rehabilitation Program (CHARP) to Community Corporation of
Santa Monica (CCSM).
BACKGROUND
At the start of each fiscal year, in order to implement the CHARP
Program, it is necessary for the Agency to take certain actions,
including execution of a contract with Community corporation of
Santa Monica for the disbursal of $75,000 from CHARP to be used
as earnest money deposits. The following discusses the actions
which the Agency must take to implement CHARP for 1987-88.
DISCUSSION
In previous years it was necessary for the Redevelopment Agency
to adoption resolutions finding the allocation of tax-increment
funds appropriated for CHARP to be of benefit to the redevelop-
ment projects. However, in 1987-88 such resolutions are not re-
quired, as the funds appropriated for CHARP in this year are not
newly appropriated tax-increment funds, but represent funds which
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JUl 1 4 1987
have been returned to the Agency through loan repayments and the
return of earnest funds paid out in FY 86-87. Resolutions of
benefit were adopted for these funds in the fiscal year in which
they were originally appropriated.
Earnest Money Contract
It is necessary to approve and execute the standard grantee con-
tract with community Corporation of Santa Monica (CCSM) to use
the "Earnest Money" component of the City-wide Housing Acquisi-
tion and Rehabilitation Program. The contract amount is $75,000.
This contract is similar in form to the contract used in the Com-
munity Development Program. The contract permits CCSM to use the
funds for deposits on properties to be purchased for affordable
housing projects, and as a revolving fund for reimbursable
development expenses associated with projects which have received
prior written approval from the Agency, and that cannot be ob-
tained on a contingency basis. The contract includes all appro-
priate provisions of the state law applicable to redevelopment
agency activities, as well as the applicable federal and City
requirements including accounting procedures, political activi-
ties, and equal employment opportunity. The Earnest Fund monies
will be returned to the Agency at the end of the contract term.
CHARP Program Guidelines
The CHARP Program Guidelines adopted by the Agency in FY 86-87
will remain in place without changes. As in past years, the
Agency will publish a "Notice of Fund Availability" and eligible
borrowers may submit an application for CHARP funds for projects
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which meet the criteria in the CHARP Guidelines.
In 1986-87 a
total of $540,379 was disbursed to CCSM for six projects with a
total of forty-five units. Also $90,000 was committed to Retire-
ment Housing Foundation for seventy-two units to be developed
under the HUD section 202 loan program.
FINANCIAL/BUDGETARY IMPACTS
The Fiscal Year 1987-88 budget includes a total appropriation of
$440,753 for the City-wide Housing Acquisition and Rehabilitation
Program.
This appropriation is reflected in the following
accounts:
01-720-264-000-942
16-720-264-000-942
16-720-264-731-942
18-720-264-128-942
18-720-264-129-942
General Fund
Downtown Fund
vitale Gilpin
Ocean Park l(b)
Ocean Park l(a)
$128,500
$177,521
$ 97,232
$ 27,375
$ 10,125
The approval of the contract with CCSM will require the expendi-
ture of $75,000 from the following accounts:
16-720-264-000-942
18-720-264-128-942
18-720-264-129-942
$37,500
$27,375
$10,125
RECOMMENDATION
It is recommended that the Redevelopment Agency approve the ex-
ecution of the attached Contract by and between the Redevelopment
Agency and Community Corporation of Santa Monica for $75,000 in
CHARP funds.
Prepared By: Candy Rupp, Acting Housing Program Manager
Department of Community & Economic Development
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