HomeMy WebLinkAboutItem No. 10AGENDA COVER SHEET
MEETING OF
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CITY OF
LAKE e LSII' ORE
DREAM EXTREME
*x
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: GRANT YATES, CITY MANAGER
DATE: MARCH 26, 2013
SUBJECT: PILOT HOUSING REHABILITATION GRANT PROGRAM
Recommendations
That the City Council:
1) approve the Guidelines for the Pilot Housing Rehabilitation Grant
Program, direct the City Attorney and staff to prepare Program
documents, and allocate $50,000 to implement the Pilot Program, and
2) formally appoint a two- member City Council Affordable Housing
Subcommittee to review Program documents prior to implementation
and to assess Program effectiveness within the context of the City's
affordable housing goals and objectives in order to guide staff in future
recommended projects and programs.
Background
Councilman Manos suggested that the City develop a Pilot Program to provide
housing rehabilitation grants to low income homeowners who may have
insufficient funds to make necessary home repairs. The City has available funds
in the Affordable Housing In Lieu Fee Account established to assist the City's
efforts to increase, improve and preserve the community supply of affordable
housing and to meet the affordable housing goals of the City and the former
redevelopment agency.
Discussion
The proposed City of Lake Elsinore Housing Rehabilitation Grant Program will
provide grants up to $5,000 for roof repair or replacement, exterior painting and
other minor exterior repairs. The Program is designed to assist low income
homeowners whose gross household income does not exceed the qualifying limits
for Riverside County as published annually by the State Department of Housing
and Community Development and who own and occupy a single family detached
AGENDA ITEM NO. 10
Page 1 of 6
Pilot Housing Rehabilitation Grant Program
March 26, 2013
Page 2
home in the City. Income limits for 2013 are set forth in the attached Guidelines.
Program assistance may be provided as a standalone grant or in combination with
the homeowner's own funds to complete minor home repairs aimed at protecting
the livability, integrity and appearance of the City's residential neighborhoods.
So long as participating homeowners comply with Program requirements for 5
years, including the use of the property as the homeowner's principal residence
and maintenance of the property in good repair and free of any code violations,
public nuisance or criminal activity, there will be no repayment obligation.
However, violation of the Program terms and conditions or discovery of fraud or
deceit in the application process will trigger the homeowner's obligation to
immediately repay the full Grant amount. A hardship exception to the ongoing
owner occupancy requirement will allow for repayment terms.
Implementation of the Pilot Program will require preparation of Program
documents, including a Program Application and Grant Agreement. The Pilot
Program will be administered by the City Manager's office.
Fiscal Impact
The Pilot Program will be funded with $50,000 from the City's Affordable Housing
In -Lieu Fee Fund #106.
Prepared by: Barbara Leibold, City Attorney
Approved by: Grant Yates, City Manager G�
Attachment: Housing Rehabilitation Grant Program Guidelines
Page 2 of 6
PROGRAM GUIDELINES
CITY OF LAKE ELSINORE
HOUSING REHABILITATION GRANT PROGRAM
1. Program Overview
The City of Lake Elsinore is offering grants to qualifying low and very low income
homeowners to fund exterior repairs to single family residences located in the
City. The Housing Rehabilitation Grant Program is designed to preserve the
City's supply of decent, safe and sanitary housing affordable to low and very low
income households.
To qualify for a Program grant, both the homeowner and the property must satisfy
specific eligibility criteria.
2. Eligible Homeowners
■ Fee Title ° Homeowners must have fee title to eligible properties
• Owner - Occupied Homeowners must currently occupy and intend to
continue to occupy the property as their principal residence.
• Income Eligibility Program grants are available only to homeowners whose
gross household income does not exceed the qualifying limits for lower
income families in Riverside County published annually by the State
Department of Housing and Community Development. All persons living in
the property are considered household members for purposes of
determining income eligibility. For 2013, gross household income cannot
exceed the following:
2013 Income Limits
Household Size
Maximum Gross Income
1
$37,550
2
$42,900
3
$48,250
4
$53,600
5
$57,900
6
$62,200
7
$66,500
8
$70,800
■ Capacity Homeowners must be of legal age and must have the capacity to
enter into binding contracts.
130 South Main Street. Lake Elsinore. CA 92530 ♦ (951) 674 -3124 ♦ Fax (951)_ 674 -2392
City of Lake Elsinore Housing Rehabilitation Grant Program
Program Guidelines
Page 2 of 4
• No Conflicts No member of the City Council and no employee, official, or
consultant who exercises any policy decision - making function in
connection with the Program is eligible for Program grants.
3. Eligible Properties
• Location Program grants are available to properties located in the City of
Lake Elsinore.
• Single Family Residence The property must be a single family detached
residence.
• Condition The property cannot evidence Municipal Code or public
nuisance code enforcement violations visible from the exterior. No interior
inspection will be conducted.
• Insurance The property must be insured by a current homeowner's
insurance policy.
• No Tax Delinquency Liens or Foreclosure Proceedings Property title must
be free of mechanic's liens or tax liens. Property taxes and assessments
must be paid current and no notice of default or commencement of
foreclosure proceedings are recorded against the property by a secured
lender.
• No Criminal Activity Properties that have been the site of repeated or
ongoing drug - related arrests or other criminal activity as evidenced by
police records /reports will not be eligible for assistance unless and until the
property owner demonstrates that such activities have been fully abated.
4. Proqram Grants
• Grant Amount Program grants up to Five Thousand Dollars ($5,000.00)
are available to eligible homeowners to make eligible improvements.
• Number of Grants Eligible properties may not receive more than one
Program grant.
• Additional Costs Program grants can be offered as a standalone grant or
combined with the homeowner's own funds or other grant or loan proceeds
to pay for eligible improvements.
■ Repayment No repayment is required so long as the participating
homeowner complies with the terms and conditions of the Grant
Agreement. Repayment will be required if any of the following occur within
five years of the date of the grant: 1) homeowner fails to occupy the
130 South Main Street. Lake Elsinore. CA 92530 ♦ (951) 674 -3124 ♦ Fax (kf51) bt4 -23y2
City of Lake Elsinore Housing Rehabilitation Grant Program
Program Guidelines
Page 3 of 4
property as his /her principal residence; 2) homeowner fails to maintain the
property in good repair and free of any code violations, public nuisance or
criminal activity, or 3) any other violation of the Program terms and
conditions or discovery of fraud or deceit in the application process. In the
event of hardship such as illness, death, loss of employment or relocation
of employment, requiring that the homeowner no longer occupy the
property as his or her principal residence, the repayment of the Grant may
be made in installments.
5. Eligible Improvements
Eligible improvements must be physically attached to the property and be
permanent in nature. Eligible improvements include the following:
• roof repair or replacement,
• exterior siding,
• exterior painting,
• exterior access improvements and special safety features to aid the
physically disabled and the elderly,
• other exterior repairs designed to preserve and protect eligible single family
structures such as work required to (i) correct health and safety hazards,
(ii) repair damaged exterior surfaces, broken glass, damaged window
screens, uneven pavement, damaged block walls and wood fences, or (iii)
similar minor repair as deemed necessary or appropriate by the Program
Administrator, or his /her designee.
In order to be eligible for a Program grant, proposed improvements must be
approved by the Program Administrator, or his /her designee, following a property
inspection and Work Write -Up. All rehabilitation work must be completed by
qualified, licensed, and insured contractors.
6. Eligible Costs
Program grants may be used only for the actual reasonable costs of the materials
and labor necessary to complete the rehabilitation work approved by the Program
Administrator and set forth in the Work Write -Up.
7. Participation Priorities
Funding is based on first -come first served basis. All applications will be date
stamped and processed in that order. Incomplete applications will be suspended
until all requested information is submitted. Program assistance shall be denied
to any homeowner who submits false information. If discovery of false information
occurs after Program assistance is funded, the participating homeowner must
immediately repay the Grant.
674 -3124 ♦ Fax
City of Lake Elsinore Housing Rehabilitation Grant Program
Program Guidelines
Page 4 of 4
8. Terms and Conditions
• Program Documents Homeowners receiving Program assistance must
sign a Grant Agreement which sets forth the terms and conditions of the
Program Grant. Homeowners must also enter into a Rehabilitation
Agreement with the contractor or contractors completing the
improvements.
• Maintenance Requirements Homeowners must maintain their properties in
good repair and in a decent, safe, and sanitary condition consistent with
community standards. Homeowners shall not permit property
improvements to suffer deterioration or decline, or maintain, cause to be
maintained, or permit to be maintained any public or private nuisance on or
about the property.
• No Criminal Activity /Nuisance Participants shall not permit public nuisance
or criminal activities to occur on the Property.
■ Nondiscrimination There shall be no discrimination against or segregation
of any person or group of persons, on account of race, color, creed,
religion, sex, marital status, national origin, or ancestry, in the selection of
contractors to complete the rehabilitation work financed with Program
assistance, or in the sale, transfer, use, occupancy, tenure, or enjoyment of
assisted properties.
■ Records Homeowners shall keep such records as may be required with
respect to the rehabilitation work financed with Program grants, including
work orders, invoices, and receipts.
• Compliance With Program Guidelines Homeowners must comply with
Program Guidelines and Procedures.
City Hall Hours
Monday — Thursday: 8:00 a.m.— 5:00 p.m.
Friday: 8:00 a.m. — 4:00 p.m.
If you have questions please call the Housing Rehabilitation Grant Program
Administrator at (951) 674 -3124, ext. _
21
WA=N
130 South Main Street. Lake Elsinore, CA 92530 ♦ (951) 674 -3124 ♦ Fax (951) 674 -2392
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