SR-407-002 (2)
RMD:HOUSING:JMM:JM:F:\MERL\SHARE\Residential Repair Program\Staff Reports\CHS 12903 final.doc
Council Meeting: December 9, 2003 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Agreement with Comprehensive Housing Services to Administer the
Residential Repair Program through June 30, 2004.
Introduction
This staff report recommends that the City Council authorize the City Manager to execute
an agreement with Comprehensive Housing Services (CHS) to administer $300,000 of
Low Income Residential Repair Program (RRP) funds with a maximum of $60,000 in
administrative fees to CHS through June 30, 2004. At least 80% of the RRP funds are
expended on eligible residential properties and up to 20% can be spent on administrative
costs per Community Development Block Grant (CDBG) Program requirements.
Background
The RRP began in 1996 as a pilot program and was administered by Willdan Associates
through 1999 using CDBG funds. The priorities of the RRP are to: (i) assist owners who
are currently housing Section 8 tenants to address potential lead-based paint hazards in
their Section 8 assisted units; and (ii) offer rehabilitation grants to residential property
owners when the property owner is low-income or a public entity and at least 51% of the
tenants qualify as low-income or moderate-income. Low-income is defined as 50% or less
of the Los Angeles area median income (AMI) as defined by the Department of Housing
and Urban Development (HUD), and moderate-income is defined as 80% or less of the Los
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Angeles AMI. The priorities for this year’s RRP funds will be to continue to remediate lead-
based paint in Section 8 units and begin health and safety repairs at the City-owned
property at 1614-16 Ocean Avenue.
On November 28, 2000, the City Council authorized the City Manager to execute a
contract with Comprehensive Housing Services (CHS) to administer $500,000 of RRP
funds following a competitive selection process. An additional $600,000 was allotted to
the program in the annual City budgets for the fiscal years 2001-2002 and 2002-2003.
During this period CHS has worked closely with the Housing and Redevelopment Division
to administer the program. Attachment A summarizes the annual and cumulative program
budgets approved by the City Council and the use of funds by program component.
Over this time span, RRP funds have been targeted to 178 housing units for a variety of
services, including Section 8 lead-based paint testing and remediation, and conventional
home repairs such as plumbing, roofing, and electrical repairs.
Discussion
Staff recommends CHS as the administrator of the RRP because it is the most qualified firm
to implement the balance of this year's RRP. CHS has operated the program for the last
several years and has specific expertise and unique knowledge on several RRP projects that
are currently in progress. A competitive selection process at this time would cause
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unnecessary expense and delay in completing these rehabilitation projects. Staff will
pursue a competitive process for the administration of the RRP for the 2004-05 fiscal year.
The Housing and Redevelopment Division has had a very favorable experience with CHS
over the last several years. The quality and experience of staff that will be dedicated to the
RRP is very good, and the average administrative cost of 11.6 % per year is considerably
less than the allowable 20% maximum. Staff considers CHS administrative costs
competitive and its continued administration of RRP activities this year is an important
program consideration.
Financial/Budgetary Impacts
The approved FY 03/04 Budget includes funding of $300,000 in CDBG funds for this
program in account number 01264.572150.
Recommendations
Staff recommends that the City Council authorize the City Manager to execute an agreement
with Comprehensive Housing Services for the administration of Low Income Residential
Repair Program funds and administrative fees up to $60,000 (20%) through June 30, 2004.
Prepared by: Jeff Mathieu, Director of Resource Management
Bob Moncrief, Housing and Redevelopment Manager
Ron Barefield, Housing Administrator
Mike Strader, Senior Administrative Analyst
Attachments: Attachment A - Use of Residential Repair Program Funds,
FY 2000-01 through 2002-03
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Attachment A
Use of Residential Repair Program Funds,
FY 2000-01 through 2002-03
The City Council approved $500,000 in FY 2000-01, $300,000 in FY 2001-02 and
$300,000 in FY 2002-03 for the Low-Income Residential Repair Program. The
approved annual budgets include all program activities and administration.
Number of Properties and Housing Units Served
Table I shows the program dollars committed and number of housing units served
under each of the program’s components for the prior three fiscal years.
Table 1
Residential Repair Program
FY 2000-01 through 2002-03
2000-01 2001-02 2002-03
Allocation Allocation Allocation
$500,000 $300,000 $300,000
PROGRAM
COMPONENT TOTALS
HUS/A
OUSING NITS ERVED DMINISTRATION
Lead Based Paint (LBP)
66 33 5 104
Testing Only
Rehabilitation Only 2 19 37 58
LBP Mitigation and
1 7 8 16
Rehabilitation
TOTAL UNITS SERVED 69 59 50 178
CHS Administration 12.8% 12.2% 8.7% 11.6%
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