HomeMy Public PortalAbout2009 CC RES 09-059RESOLUTION NO. 09-059
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON,
CALIFORNIA, AUTHORIZING AND APPROVING THE SUBMISSION OF AN
APPLICATION FOR FUNDING FROM THE STATE OF CALIFORNIA
NEIGHBORHOOD STABILIZATION PROGRAM (NSP), AND THE EXECUTION
OF A GRANT AGREEMENT WITH THE STATE AND A JOINT AGREEMENT
WITH THE CITY OF LYNWOOD AND TAKING OTHER ACTIONS IN
CONNECTION THEREWITH.
WHEREAS, in response to a nationwide housing foreclosure crisis and the negative effects
of these foreclosures on the stability of residential neighborhoods throughout the nation, the
United States Congress passed the Housing and Economic Recovery Act of 2008, which provided
a nationwide special allocation of $3.92 billion in Community Development Block Grant funding,
known as the Neighborhood Stabilization Program (NSP), to enable state and local jurisdictions to
finance, purchase, acquire, or redevelop abandoned and foreclosed homes, with the objective of
stabilizing residential neighborhoods and stemming the decline in residential property values as a
result of widespread foreclosures; and
WHEREAS, the United States Department of Housing and Urban Development has
provided $530 million in NSP funding for use throughout California; $385 million of that funding
was provided directly to selected city and county governments, and $145 million has been
provided to the California Department of Housing and Community Development ( "HCD ") for
distribution among the remaining California local jurisdictions; and
WHEREAS, the HCD has informed the City of Carson that the City qualifies for NSP
funds in the amount of $1,329,065.00; and
WHEREAS, the City of Carson is permitted to help other jurisdictions implement their
NSP funds to the extent said jurisdictions receive an amount less than $1,000,000.00; and
WHEREAS, the City of Carson desires to enter into the joint agreement with the City of
Lynwood in the form attached hereto as Exhibit A and by this reference incorporated herein (the
"Agreement ") to effectuate its administration and implementation of the Lynwood grant; and
WHEREAS, the City of Carson has held public hearings on April 2, 2009 and May 19,
2009, as well as an additional public meeting on April 30, 2009, to obtain input from the public
into the proposed program;
WHEREAS, the City of Carson has prepared an application to the State incorporating all
the requirements of the NSP program (the "Application ");
NOW, THEREFORE, the City Council of the City of Carson hereby finds and resolves:
Section 1. The City Council has reviewed and hereby approves the Application (and its
contents) for up to $1,329,065.00 for Carson and $916,161 for Lynwood for the following
activities:
Purchase and rehabilitation of homes and residential properties that have been abandoned and
foreclosed upon, in order to sell such homes to income - eligible purchasers. These activities are to
be performed throughout the geographic boundaries of the City of Carson and the City of
Lynwood.
If any additional NSP funding becomes available at a later date, the City of Carson is authorized to
apply for, and /or accept funding, up to the maximum amount available under the NSP allocation.
Any additional NSP funding will be used in accordance with funding requirements established by
the State of California Neighborhood Stabilization Program.
Section 2. The City Council hereby authorizes the City to submit a joint NSP application
in collaboration with the City of Lynwood, and accepts the role of Lead Agency for the activities
under this joint NSP Application. The City Council hereby approves the Agreement and
authorizes the City Manager or the Mayor to enter into and execute the Agreement for and on
behalf of the City.
Section 3. The City Council has determined that federal Citizen Participation
requirements were met during the development of this application.
Section 4. The City Council hereby approves the relocation plan attached hereto as
Exhibit "B" and by this reference incorporated herein which plan is required for the Application.
Section 5. The City Manager or the Economic Development General Manager is hereby
authorized and directed to act on the City's behalf in all matters pertaining to the Application,
including the execution of the State of California's Standard Agreement or other Agreement with
the State related to the funding.
Section 6. If the application is approved, the City Manager or the Economic Development
General Manager is authorized to enter into and sign the grant agreement, and any subsequent
amendments thereto, with the State of California for the purposes of this grant.
Section 7. If the application is approved, the City Manager, the Economic Development
General Manager, or the Housing and Neighborhood Development Manager are authorized to sign
Funds Requests and other required reporting forms.
Section 8. This action is not a "project" under the California Environmental Quality Act
( "CEQA ") Guideline 15378(b)(4) and the activities proposed under the Application are exempt
from CEQA pursuant to CEQA Guideline 15301.
2008.
Section 9. This Resolution supplements Resolution No. 08 -150 adopted on December 2,
Section 10. This Resolution shall be effective immediately upon its adoption.
PASSED, APPROVED, and ADOPTED this 16th day of June, 2009
Nt;1-4.})
ayor Jim Dear
ATTEST:
iuv
City Clerk Helen Kawagoe
APPROVED AS TO FORM:
City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF CARSON )
I, Helen S. Kawagoe, City Clerk of the City of Carson, California, do hereby certify that the whole
number of members of the City Council is five; that the foregoing resolution, being Resolution No.
09 -059 was duly and regularly adopted by said Council at a regular meeting duly and regularly held
on the 16th day of June, 2009, and that the same was passed and adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Mayor Dear, Davis - Holmes, Santarina, Gipson and Ruiz -Raber
None
None
None
Lt.
City Clerk Helen S. awagoe
JOINT COOPERATION AGREEMENT
THIS AGREEMENT (this "Agreement "), made and entered into by and between the
CITY OF CARSON, a municipal corporation ( "CARSON ") and the CITY OF LYNWOOD, a
municipal corporation ("PARTICIPATING JURISDICTION ").
WITNESSETH
WHEREAS, per the Housing and Economic Recovery Act of 2008, pursuant to Title III
of Division B ( "HERA "), under the heading Emergency Assistance for Redevelopment of
Abandoned and Foreclosed Homes, referred to henceforth as the Neighborhood Stabilization
Program (NSP), the U. S. Congress has allocated $3.92 billion for the NSP to States and units of
local government with the greatest needs based on three factors:
1) Number and percentage of home foreclosures;
2) Number and percentage of homes financed by a subprime mortgage related loan; and
3) Number and percentage of homes in default or delinquent;
WHEREAS, the State of California is anticipated to receive $529.6 million (13.5 percent)
of the $3.92 billion in available NSP funding;
WHEREAS, the State of California, as are all NSP grantees, is required to give priority
emphasis in targeting NSP funding to those metropolitan areas, metropolitan cities, urban areas,
rural areas, low- and moderate - income areas, and other areas with the greatest need based on
U.S. Department of Housing and Urban Developments Department's ( "HUD ") three factors;
WHEREAS, in CARSON and PARTICIPATING JURISDICTION abandoned and
foreclosed homes have had an adverse impact to varying degrees. Specifically, those
jurisdictions have been burdened with a correlated rise in blight, vandalism, illegal occupancy,
code enforcement violations and declining land values as a result of abandoned and foreclosed
homes and the declining housing market;
WHEREAS, CARSON and PARTICIPATING JURISDICTION are located within Los
Angeles County;
WHEREAS, based on HUD projections, this matter is only forecasted to worsen due to
relaxed underwriting standards, in the recent past, for mortgages that are due to have variable
interest rates reset in the near future, thus producing an increase in mortgage defaults and
eventual foreclosures; and
WHEREAS, pursuant to the guidelines and requirements for obtaining and implementing
NSP funding (the "NSP Guidelines ") provided by the California Department of Housing and
Community Development ("HCD"), if a potential individual recipient is eligible for an allocation
of less than $1,000,000 from NSP funding, then that recipient can combine with one or more
other potential recipients who is eligible for an allocation of $1,000,000 or more from NSP
funding so the joint allocation would exceed that $1,000,000 threshold;
Exhibit A
01007/0005/67518.05
WHEREAS, CARSON is eligible for an allocation of $1,329,065 from NSP funding and
Lynwood is eligible for an allocation of $916,161 and each is eligible under Tier 1 or 2 (the
"NSP Grants "); and
WHEREAS, CARSON and PARTICIPATING JURISDICTION desire to coordinate the
receipt of the NSP funding to which each is eligible to ensure each receives their allocation for
use as provided in the NSP Guidelines and to provide for CARSON as the lead agency to
implement the NSP Grants and is permitted to do so pursuant to a joint agreement; and
WHEREAS, this agreement covers State of California NSP requirements; and
WHEREAS, CARSON and PARTICIPATING JURISDICTION have each held two
public hearings prior to adoption of this Agreement; and
WHEREAS, on June 16, 2009, the City Council of CARSON authorized and approved
this Agreement and on June 2, 2009, the City Council of Lynwood authorized and approved this
Agreement.
NOW, THEREFORE, in consideration of the mutual benefits to be derived by CARSON
and PARTICIPATING JURISDICTION and of the promises herein contained, it is hereby
agreed as follows:
1. Lead Agency: CARSON is hereby designated as the lead entity for purposes of
this Agreement, the application for NSP Grants, administration and implementation of NSP
Grants and, as required by the NSP Guidelines, and shall be the direct grant recipient for the NSP
Grants. CARSON shall administer and implement the portion of the NSP Grants related to
PARTICIPATING JURISDICTION and, as such, PARTICIPATING JURISDICTION hereby
appoints CARSON as administrator and agent for PARTICIPATING JURISDICTION with
respect to the NSP Grant of PARTICIPATING JURISDICTION, as permitted and approved by
governing body of PARTICIPATING JURISDICTION.
2. Grant Application. CARSON will complete and execute the State's NSP grant
agreement by way of a joint application to be accompanied by an executed copy of this
Agreement. All parties hereby agree to provide to CARSON in a timely manner any and all
information related to their jurisdiction that is necessary to complete the joint application.
3. Responsibilities of Carson: Consistent with HUD regulations and rules, Carson
assumes responsibility for administering and implementing the NSP Grants on behalf of both
CARSON and PARTICIPATING JURISDICTION in compliance with applicable program
requirements and the law, including but not limited to compliance with program income and rent
affordability after close out of the NSP Grant. PARTICIPATING JURISDICTION hereby
delegates to the extent required under the NSP program the authority to CARSON to undertake
such activities. In such connection, the parties agree as follows:
a. Carson shall be responsible for administering and implementing the NSP
Grants and activities in accordance with NSP Guidelines. CARSON shall retain the NSP
Grants and shall apply them in accordance with this Agreement, any subrecipient
01007/0005/6751 8
agreement, if any, the NSP requirements and any agreement entered into with the State of
California relating to the NSP Grants.
b. Carson shall use diligent efforts to expend NSP Grants related to
PARTICIPATING JURISDICTION on NSP activities in accordance with NSP
Guidelines; provided, however that CARSON shall not incur any liability to the extent it
is unable or fails to expend all or part of the NSP Grants related to PARTICIPATING
JURISDICTION.
c. Each party has designated a Program Administrator under Section 10
hereof, which person shall be the contact person for CARSON'S Program Administrator
to coordinate with from each PARTICIPATING JURISDICTION in carrying out its
duties hereunder. CARSON, as the lead agency, shall be entitled to rely on the direction
and decisions of the Program Administrator of PARTICIPATING JURISDICTION. The
parties hereto shall comply with Section 8(c) hereof in implementing the NSP Grants.
d. CARSON shall acquire, rehabilitate and resell foreclosed homes and
undertake such other permitted activities and work under the NSP Guidelines and
requirements within CARSON and PARTICIPATING JURISDICTION pursuant to the
application filed with the State. Carson shall obtain all required approvals and permits
for the work as requested by the Program Administrator for the applicable
PARTICIPATING JURISDICTION.
e. CARSON shall monitor compliance with the NSP requirements and may
request information from PARTICIPATING JURISDICTION as necessary to effectuate
its responsibilities under the NSP Grants.
f. CARSON may engage the services of qualified consultants to assist with
any portion of the administration. The selection of a consultant will follow the normal
solicitation, hiring and /or bidding procedures of the City of Carson.
g. CARSON shall allocate and administrate any additional funds received
under the NSP program with respect to CARSON and PARTICIPATING
JURISDICTION.
4. Responsibilities of all Parties. CARSON and PARTICIPATING
JURISDICTION agree:
a. To comply with the State of California NSP Guidelines, HUD regulations
and HERA.
b. To undertake or assist in undertaking activities which further the
redevelopment of abandoned and foreclosed homes and residential properties, principally
for persons of low and moderate income activities that may include: (i) Establishment of
financing mechanisms for the purchase and redevelopment of foreclosed upon homes and
residential properties, including such mechanisms as soft seconds, loan loss reserves, and
shared - equity loans for low and moderate - income homebuyers; (ii) Purchase and
rehabilitation of homes to sell, rent or redevelop, (iii) Establishment of land banks for
01007/0005/67518
five percent (5 %) of the amount of its allocations for its administration of the NSP
Grants.
homes that have been foreclosed upon; (iv) Demolition of blighted structures; or (iv)
Redevelopment of demolished or vacant properties, funded from NSP Grants and from
any program income generated from the expenditure of such funds.
c. To undertake appropriate State and /or Federal environmental review with
respect to use of NSP Grants for projects, including the National Environmental
Protection Act ( "NEPA ") and /or the California Environmental Quality Act ( "CEQA ").
For each project assisted with NSP Funds, CARSON shall be the lead entity for
compliance purposes with NEPA and CEQA unless otherwise requested by
PARTICIPATING JURISDICTION'S Program Administrator or unless otherwise
requested by CARSON of PARTICIPATING JURISDICTION.
d. To provide for citizen participation where appropriate and as required by
the NSP Guidelines and /or the U.S. Department of Housing and Urban Development in
their respective jurisdictions, including public noticing and public hearings as permitted
by HCD.
e. To account for and provide appropriate records relating to approval and
use of funds pursuant to NSP Guidelines, HUD regulations and HERA.
f. To only use the NSP Grants for the benefit of low, moderate and middle
income individuals and families pursuant to NSP Guidelines and HUD regulations.
g. Each party is obligated to take all actions necessary to assure compliance
with the certification required by section 104(b) of Title I of the Housing and Community
Development Act of 1974, as amended, including Title VI of the Civil Rights Act of
1964, the Fair Housing Act, section 109 of Title I of the Housing and Community
Development Act of 1974, and other applicable laws.
h. Each party is prohibited from using any portion of the NSP Grant for any
activity in, or in support of, any action or program that does not affirmatively further fair
housing within its own jurisdictions or any of the jurisdictions or that impedes
CARSON'S actions to comply with its fair housing certification.
i. To enter into subrecipient agreements as required by NSP Guidelines, if
necessary. The City Manager of PARTICIPATING JURISDICTION and CARSON or
the officer authorized to enter into this Agreement is hereby authorized to enter into and
execute any subrecipient agreement with CARSON with respect to the NSP Grants.
j. Each party agrees to comply with all Federal, State and local laws,
ordinances, rules and regulations governing NSP.
5. Program Costs.
8. Additional Compliance. The parties hereto agree as follows.
a. This Agreement shall remain in effect until the NSP Grant funds and
program income received are expended and the funded activities completed.
b. This Agreement cannot be terminated and neither CARSON nor
PARTICIPATING JURISDICTION and no party may withdraw from it while it remains
in effect.
c. None of the parties hereto has authority to veto or otherwise restrict
obstruct the implementation of the approved State NSP application during the period
covered by either party's NSP agreement with the State.
d. Pursuant to 24 CFR 570.501(b), each party is subject to the same
requirements applicable to subrecipients, including the requirement of a written
agreement as described in 24 CFR 570.503.
9. Amendment. This Agreement may be amended or modified only by mutual
written consent of PARTICIPATING JURISDICTION and CARSON and only if such
amendment and modification is consistent with the requirements of the NSP. Modifications
clarifying NSP program requirements may be entered into by the Program Administrators of
CARSON and each PARTICIPATING JURISDICTION without the requirement of action of the
applicable city council on the modification.
10. Notices and Program Administrator. Any correspondence,
communication, or contact concerning this Agreement shall be directed to the Program
Administrator at each party at following addresses:
LYNWOOD
Roger Haley, Program Administrator
City of Lynwood
11330 Bullis Road
Lynwood, CA 90262
Phone: 310/603-0220 Ext. 200
Email: rhaley @lynwood.ca.us
CARSON:
Jerome G. Groomes, Program Administrator
City of Carson
1 Civic Plaza Drive, Suite 500
Carson, CA 90745
Phone: 310/952 -1729
Email: jgroomes @carson.ca.us
01007/0005/67518
11. Indemnification. CARSON and PARTICIPATING JURISDICTION agree as
follows:
a. CARSON and its officers or employees or agents shall not be responsible
for any damage or liability occurring by reason of any acts or omissions on the part of
PARTICIPATING JURISDICTION or each of their officers or employees or Agents
under or in connection with this Agreement. It is also understood and agreed, pursuant to
Government Code, Section 895.4, PARTICIPATING JURISDICTION, and each of
them, shall fully indemnify, defend, and hold CARSON harmless from any liability
imposed for injury (as defined by Government Code, Section 810.8) occurring by reason
of any acts or omissions on the part of PARTICIPATING JURISDICTION under or in
connection with any work, authority, or jurisdiction delegated to or determined to be the
responsibility of PARTICIPATING JURISDICTION under this Agreement.
b. PARTICIPATING JURISDICTION, with respect to each of their portion
of the NSP Grants, and each jurisdictions officers or employees or agents shall not be
responsible for any damage or liability occurring by reason of any acts or omissions on
the part of CARSON or its officers or employees under or in connection with this
Agreement. It is also understood and agreed that, pursuant to Government Code, Section
895.4, CARSON shall fully indemnify, defend, and hold PARTICIPATING
JURISDICTION harmless from any liability imposed for injury (as defined by
Government Code, Section 810.8) occurring by reason of any acts or omissions on the
part of CARSON under or in connection with any work, authority, or jurisdiction
delegated to or determined to be the responsibility of CARSON under this Agreement.
12. Governing Law. This Agreement shall be governed by the laws of the State of
California.
13. Counterparts. This Agreement may be executed in counterparts.
01007/0005/67518
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective officers, duly authorized, by the CITY OF CARSON on June 16, 2009, and
by the CITY OF LYNWOOD on June 9, 2009.
CITY OF CARSON
By:
Jim Dear, Mayor
ATTEST:
Helen Kawagoe, City Clerk
APPROVED AS TO FORM:
By:
City Attorney
CITY OF LYNWOOD
By:
Roger Haley, City Manager
ATTEST:
Maria Quinonez, City Clerk
APPROVED AS TO FORM:
By:
City Attorney
01007/0005/67518.05
ALESHIRE
WYNDER, LLP
ATTORNEYS AT LAW
www.awattorneys.com
June 12, 2009
State of California
Department of Housing and Community Development
Division of Financial Assistance
Neighborhood Stabilization Program
1800 Third Street, Suite 330
Sacramento, CA 95811
Orange County Offices
18881 Von 'Carman Avenue
Suite 400
Irvine, California 92612
Phone 949.223.1170
Fax 949.223.1180
Los Angeles Office:
South Bay Centre
1515 West 190th Street
South Tower, Suite 565
Gardena, California 90248
Phone 310.527.6660
Fax 310.532.7395
Re: Joint Agreement with the cities of Lynwood and Carson for the
Neighborhood Stabilization Program ( "NSP ") Funding
To Whom It May Concern:
In my capacity as City Attorney of the City of Lynwood (the "City ") in connection with
the execution of the Joint Cooperation Agreement by and between the City and the City of
Carson related to the NSP program (the "Agreement "), I have examined the Agreement, the
guidelines for the NSP and a resolution adopted by the City Council of the City on June 2, 2009,
as supplemented by a resolution adopted on June 9, 2009. I have assumed, without independent
verification, the accurateness of all factual matters and assertions in the Agreement. Relying on
such examination, assumptions and pertinent law, and subject to the limitations and
qualifications hereinafter set forth, I am of the opinion that:
1. The City is a municipal corporation duly organized and validly existing under and
by virtue of the Constitution and laws of the State of California.
2. The City has all necessary power and authority to enter into and perform its duties
under the Agreement.
3. The Agreement has been duly authorized, executed and delivered by the City and,
assuming due authorization, execution and delivery thereof by the other parties thereto, the
Agreement constitutes legal, valid and binding obligation enforceable against the City in
accordance with the respective terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws
affecting the enforcement of creditors' rights generally and by the application of equitable
principles if sought and by the limitations on legal remedies imposed on actions against cities in
the State of California.
01095/0001/69220.01
State of California
June 12, 2009
Page 2
I am a member of the State Bar of California. I opine only as to the laws of the State of
California. This opinion is furnished to you solely to comply with the obligations of the NSP
program application. This opinion is not to be used, circulated, quoted or otherwise referred to
for any other purpose.
Very truly yours,
ALESHIRE & WYNDER, LLP
Fred Galante
City Attorney
01095/0001/69220.01
ALESHIRE
WYNDER, LLP
ATTORNEYS AT LAW
www.awattorneys.com
June 16, 2009
State of California
Department of Housing and Community Development
Division of Financial Assistance
Neighborhood Stabilization Program
1800 Third Street, Suite 330
Sacramento, CA 95811
Orange County Officet
18881 Von Karman Avenue
Suite 400
Irvine, California 92612
Phone 949.223.1170
Fax 949.223.1180
Los Angeles Office:
South Bay Centre
1515 West 190th Street
South Tower, Suitc 565
Gardena, California 90248
Phone 310.527.6660
Fax 310.532.7395
Re: Joint Agreement with the cities of Carson and Lynwood for the
Neighborhood Stabilization Program ( "NSP ") Funding
To Whom It May Concern:
In my capacity as City Attorney of the City of Carson (the "City ") in connection with the
execution of the Joint Cooperation Agreement by and between the City and the City of Lynwood
related to the NSP program (the "Agreement "), I have examined the Agreement, the guidelines
for the NSP and a resolution adopted by the City Council of the City on June 16, 2009. I have
assumed, without independent verification, the accurateness of all factual matters and assertions
in the Agreement. Relying on such examination, assumptions and pertinent law, and subject to
the limitations and qualifications hereinafter set forth, I am of the opinion that:
1. The City is a municipal corporation duly organized and validly existing under and
by virtue of the Constitution and laws of the State of California.
2. The City has all necessary power and authority to enter into and perform its duties
under the Agreement.
3. The Agreement has been duly authorized, executed and delivered by the City and,
assuming due authorization, execution and delivery thereof by the other parties thereto, the
Agreement constitutes legal, valid and binding obligation enforceable against the City in
accordance with the respective terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws
affecting the enforcement of creditors' rights generally and by the application of equitable
principles if sought and by the limitations on legal remedies imposed on actions against cities in
the State of California.
01018/0005/69219.01
A&W
State of California
June 16, 2009
Page 2
I am a member of the State Bar of California. I opine only as to the laws of the State of
California. This opinion is furnished to you solely to comply with the obligations of the NSP
program application. This opinion is not to be used, circulated, quoted or otherwise referred to
for any other purpose.
Very truly yours,
ALESHIRE & WYNDER, LLP
Dawn C. Honeywell
Assistant City Attorney
01018/0005/69219.01
CITY OF CARSON
HOUSING REHABILITATION PROGRAM SINGLE FAMILY TEMPORARY RELOCATION PLAN
The Housing and Community Development Act of 1974, as amended, and the National
Affordable Housing Act of 1990, require all grantees of Community Development Block
Grant (CDBG) funds / Neighborhood Stabilization Program (NSP) funds to follow a
written Residential Anti - displacement and Relocation Assistance Plan (Plan) for any
activities which could lead to displacement of occupants whose property is receiving
funds from these or other federal funding source. Having been developed in response
to both aforesaid federal legislations, this Plan is intended to inform the public of the
compliance of the City of Carson with the requirements of federal regulations 24 CFR
570.606 under state recipient requirements and Section 104(d) of the Housing and
Community Development Act of 1974. The Plan will outline reasonable steps, which the
City will take to minimize displacement and ensure compliance with all applicable
federal and state relocation requirements. The City's governing body has adopted this
plan via a formal resolution.
This Plan will affect rehabilitation activities funded by the U.S. Department of Housing
and Urban Development (HUD) under the following program titles: CDBG, NSP and
such other grants as HUD may designate as applicable, which take place with in the
City limits.
The City of Carson will provide permanent relocation benefits to all eligible "displaced"
households either owner occupied or rental occupied units which are permanently
displaced by the housing rehabilitation program (See Section E below.). In addition,
the City will replace all eligible occupied and vacant occupiable low income group
dwelling units demolished or converted to a use other than low income group housing
as a direct result of rehabilitation activities. This applies to all units assisted with funds
provided under the Housing and Community Development Act of 1974, as amended,
and as described in the Federal Regulations 24 CFR 570.496(a), Relocation,
Displacement and Acquisition: Final Rule dated July 18, 1990 (Section 104(d)) and 49
CFR Part 24, Uniform Relocation Assistance (URA) and Real Property Acquisition
Regulations Final Rule and Notice (URA) dated March 2, 1989.
All City programs /projects will be implemented in ways consistent with the City's
commitment to Fair Housing. Participants will not be discriminated against on the basis
of race, color, religion, age, ancestry, national origin, sex, familial status, or handicap.
The City will provide equal relocation assistance available 1) to each targeted income
group household displaced by the demolition or rehabilitation of housing or by the
conversion of a targeted income group dwelling to another use as a direct result of
assisted activities; and 2) to each separate class of targeted income group persons
temporarily relocated as a direct result of activities funded by HUD programs.
A. Minimizing Permanent Displacement and Temporary Relocation Resulting from
Housing Rehabilitation or Reconstruction Activities: Consistent with the goals and
objectives of activities assisted under the Act, the City will take the following steps to
Exhibit B
minimize the displacement of persons from their homes during housing rehabilitation
or reconstruction funded by HUD programs:
1. Provide proper notices with counseling and referral services to all tenants so that
they understand their relocation rights and receive the proper benefits. When
necessary assist permanently displaced persons to find alternate housing in the
neighborhood.
2. Stage rehabilitation of assisted households to allow owner occupants and /or
tenants to remain during minor rehabilitation.
3. Encourage owner investors to temporarily relocate tenants to other available safe
and sanitary vacant units on the project site area during the course of
rehabilitation or pay expenses on behalf of replaced tenants.
4. Work with area landlords, real estate brokers, and /or hotel /motel managements
to locate vacancies for households facing temporary relocation.
5. When necessary, use public funds, such as CDBG funds, to pay moving costs
and provide relocation /displacement payments to households permanently
displaced by assisted activities.
B. Lead Based Paint Mitigation Which Causes Temporary Relocation: On
September 15, 2000, the Final Rule for Lead Based Paint Hazard Control (LHC)
went into effect. Among other things, it requires that federally- funded rehabilitation
must use safe work practices so that occupants and workers can be protected from
lead hazards. At no time should the tenant - occupant(s) be present in work
areas or designated adjacent areas while LHC activities are taking place in any
dwelling unit interior, common area, or exterior. As such, occupants may not be
allowed to remain in their units during the time that lead -based paint hazards are
being created or treated. Once work that causes lead hazards has been completed,
and the unit passes clearance, the occupants can return. The tenant - occupants
may not reoccupy a work area or adjacent area until post -lead hazard
reduction clearance standards have been achieved and verified with
laboratory results. The final rule allows for certain exceptions:
1. The work will not disturb lead -based paint, or create dust -lead or soil -lead
hazard; or
2. The work is on exterior only and openings are sealed to prevent dust from
entering the home, the work area is cleaned after the work is completed, and the
residents have alternative lead free entry; or
3. The interior work will be completed in one period of less than 8- daytime hours
and the work site is contained to prevent the release of dust into other areas of
the home; or
4. The interior work will be completed within five (5) calendar days, the work site is
contained to prevent the release of dust, the worksite and areas within 10 feet of
the worksite are cleaned at the end of each day to remove any visible dust and
debris, and the residents have safe access to kitchen and bath and bedrooms.
If temporary relocation benefits are not provided because the City believes that the
project meets one of the above criteria, then proper documentation must be provided
in the rehabilitation project file to show compliance. It is up to the City to ensure that
the owner occupant or tenant in the project does not get impacted by lead paint
mitigation efforts. In most cases where lead paint mitigation is taking place,
occupants (tenants or owners) will be strongly encouraged to relocate even for just a
few days until a final lead clearance can be issued by a certified lead based paint
assessor. Occupants who are temporarily relocated because of lead based paint
mitigation are entitled to the same relocation benefits as those who are relocated
because of substantial rehabilitation or reconstruction activities.
C. Temporary Relocation of Owner Occupants: Owner occupants are not allowed to
stay in units which are hazardous environments during lead based paint mitigation.
When their home is having lead based paint mitigation work done which will not
make it safe to live in, then they are eligible for temporary relocation benefits up to
$500, which will be provided as a grant. In the same way, a unit requiring
substantial rehabilitation (with or without lead based paint mitigation) which will not
allow the family to access a bath or kitchen facility, or if the unit is being demolished
and reconstructed, then the family will be eligible for temporary relocation benefits
up to $500, which will be provided as a grant. In no case shall the grant for
temporary relocation exceed $500 for any one owner occupant.
Owner occupants will be encouraged to move in with family or friends during the
course of rehabilitation, since they are voluntarily participating in the program. The
housing rehabilitation loan specialist and /or the rehabilitation construction specialist
will complete a temporary relocation benefits form to document that the owner
occupant understands that they must relocate during the course of construction and
what benefits they wish to be reimbursed for as part of their relocation.
D. Temporary Relocation of Residential Tenants: If continued occupancy during
rehabilitation is judged to constitute a substantial danger to health and safety of the
tenant or the public, or is otherwise undesirable because of the nature of the project,
the tenant may be required to relocate temporarily. The program administrator or
construction supervisor will make determination of the need for temporary relocation.
The temporary relocation period will not exceed 180 days. All conditions of
temporary relocation will be reasonable. Any tenant required to relocate temporarily
will be helped to find another place to live which is safe, sanitary and of comparable
value and they have the first right to move back into the original unit being
rehabilitated at the same rent or lower. He or she may move in with family and
friends and still receive full or partial temporary assistance based on eligible cost
incurred. The housing rehabilitation loan specialist and /or the rehabilitation
construction specialist will ensure that each tenant occupied unit under the program
will receive a General Information Notice (GIN) (as soon as possible after a loan
application is received) and the tenant will receive a Notice of Non - displacement
(after loan approval), and each tenant occupied unit will have a temporary relocation
benefits form completed for them. These notices will document that each tenant
understands what their relocation rights are, and if they must relocate during the
course of construction, that they receive the proper counseling and temporary
relocation benefits.
A tenant receiving temporary relocation shall receive the following:
1. Increased housing costs (e.g. rent increase, security deposits) and
2. Payment for moving and related expenses, as follows:
a. Transportation of the displaced persons and personal property within 50
miles, unless the grantee determines that farther relocation is justified;
b. Packing, crating, unpacking, and uncrating of personal property;
c. Storage of personal property, not to exceed 12 months, unless the grantee
determines that a longer period is necessary;
d. Disconnection, dismantling, removing, reassembling, and reinstalling
relocated household appliances and other personal property;
e. Insurance for the replacement value of personal property in connection with
the move and necessary storage;
f. The replacement value of property lost, stolen or damaged in the process of
moving (not through the fault of the displaced person, his or her agent, or
employee) where insurance covering such Toss, theft or damage is not
reasonably available;
g.
Reasonable and necessary costs of security deposits required to rent the
replacement dwelling;
h. Any costs of credit checks required to rent the replacement dwelling;
i. Other moving related expenses as the grantee determines to be reasonable
and necessary, except the following ineligible expenses:
1) Interest on a loan to cover moving expenses; or
2) Personal injury; or
3) Any legal fee or other cost for preparing a claim for a relocation
payment or for representing the claimant before the Grantee; or
4) Costs for storage of personal property on real property already owned
or leased by the displaced person before the initiation of negotiations.
E. Rehabilitation Activities Requiring Permanent Displacement: The City rehabilitation
program will not typically trigger permanent displacement and permanent
displacement activities fall outside of the scope of this plan. If a case of permanent
displacement is encountered, then the staff responsible for the rehabilitation
program will consult with City legal counsel to decide if they have the capacity to
conduct the permanent displacement activity. If local staff does not have the
capacity, then a professional relocation consultant will be hired to do the counseling
and benefit determination and implementation. If local staff does wish to do the
permanent displacement activity then they will consult and follow the HUD
Relocation Handbook 1378.
F. Record Keeping and Relocation Disclosures /Notifications: The City will maintain
records of occupants of Federally funded rehabilitated, reconstructed or demolished
property from the start to completion of the project to demonstrate compliance with
section 104(d), URA and applicable program regulations. Each rehabilitation
project, which dictates temporary or permanent or replacement activities, will have a
project description and documentation of assistance provided. (See sample forms in
HUD Relocation Handbook 1378, Chapter 1, Appendix 11, form HUD - 40054)
Appropriate advisory services will include reasonable advance written notice of (a)
the date and approximate duration of the temporary relocation; (b) the address of the
suitable, decent, safe, and sanitary dwelling to be made available for the temporary
period; (c) the terms and conditions under which the tenant may lease and occupy a
suitable, decent, safe, and sanitary dwelling.
Notices shall be written in plain, understandable primary language of the persons
involved. Persons who are unable to read and understand the notice (e.g. illiterate,
foreign language, or impaired vision or other disability) will be provided with
appropriate translation /communication. Each notice will indicate the name and
telephone number of a person who may be contacted for answers to questions or
other needed help. The notices and process below is only for temporary relocation.
If permanent relocation is involved then other sets of notice and noticing process
and relocation benefits must be applied (See HUD relocation handbook 1378 for
those forms and procedures) The Temporary Relocation Advisory Notices to be
provided are as follows:
1. General Information Notice: As soon as feasible when an owner investor is
applying for Federal financing for rehabilitation, reconstruction, or demolition, the
tenant of a housing unit will be mailed or hand delivered a General Information
Notice that the project has been proposed and that the tenant will be able to
occupy his or her present house upon completion of rehabilitation. The tenant
will be informed that the rent after rehabilitation will not exceed current rent or 30
percent of his or her average monthly gross household income. The tenant will
be informed that if he or she is required to move temporarily so that the
rehabilitation can be completed, suitable housing will be made available and he
or she will be reimbursed for all reasonable extra expenses. The tenant will be
cautioned that he or she will not be provided relocation assistance if he or she
decides to move for personal reasons.
2. Notice of Non Displacement: As soon as feasible when the rehabilitation
application has been approved, the tenant will be informed that they will not be
permanently displaced and that they are eligible for temporary relocation benefits
because of lead based paint mitigation or substantial rehabilitation, or
reconstruction of their unit. The tenant will also again be cautioned not to move
for personal reasons during rehabilitation, or risk losing relocation assistance.
3. Disclosure to Occupants of Temporary Relocation Benefits: This form is
completed to document that the City /County is following its adopted temporary
relocation plan for owner occupants and tenants.
4. Other Relocation /Displacement Notices: The above three notices are required
for temporary relocation. If the City /County is attempting to provide permanent
displacement benefits then there are a number of other forms which are required.
Staff will consult HUD's Relocation Handbook 1378 and ensure that all the
proper notices are provided for persons who are permanently displaced as a
result of housing rehabilitation activities funded by CDBG or other federal
programs.
City of Carson
Report to Mayor and City Council
June 16, 2009
Special Orders of the Day
SUBJECT: PUBLIC HEARING ON THE PROPOSED SUBMISSION OF AN APPLICATION TO
THE STATE OF - Fn ' ► IA FOR FUNDING UNDER THE NEIGHBORHOOD
STABILIZA 0 ' ' • G ' (NSP).
r/"
Submitted by C . Grave
Economic Development General Manager
Approded by Jerome G. Groo
City Manager
I.
SUMMARY
The requested actions relate to the submission by the city of Carson of an
application to the California Department of Housing and Community
Development (HCD) for Neighborhood Stabilization Program (NSP) funding.
NSP is a program through the U. S. Department of Housing and Urban
Development (HUD) providing a special allocation of Community Development
Block Grant (CDBG) funds to state and local governments to enable those
jurisdictions to take a number of permitted actions to combat the effects of
widespread housing foreclosures. HUD reserved $530 million for use
throughout California, distributing $385 million of it directly to selected local
governments, and allocating the remaining $145 million to HCD for distribution
throughout the remainder of the state. Carson was not one of the local
governments selected for this direct allocation from HUD, but is eligible for a
portion of the $145 million allocated to HCD. The application being submitted
by Carson involves a collaboration with the city of Lynwood, with Carson as the
lead agency, on a joint program of bulk purchases of abandoned foreclosed
homes in the two communities, rehabilitating those structures, and reselling them
to income - eligible purchasers. The joint application being submitted by the two
cities is for $2,245,226.00 ($1,329,065.00 for Carson and $916,161.00 for
Lynwood) .
II. RECOMMENDATION
TAKE the following actions:
1. OPEN the Public Hearing, TAKE public testimony, and CLOSE the Public
Hearing.
2. APPROVE the NSP Joint Cooperation Agreement with the city of Lynwood.
3. WAIVE further reading and ADOPT Resolution No. 09 -059, "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON,
CALIFORNIA, AUTHORIZING AND APPROVING THE SUBMISSION
City of Carson Report to Mayor and City Council
June 16, 2009
OF AN APPLICATION FOR FUNDING FROM THE STATE OF
CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM (NSP),
AND THE EXECUTION OF A GRANT AGREEMENT AND ANY
AMENDMENTS THERETO."
4. AUTHORIZE the City Manager to sign the grant agreement, and any
subsequent amendments thereto, with the State of California for the purposes
of this grant.
III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
In previous reports from staff over the past eight months, the City Council has
been apprised of the following developments:
• The passage by the United States Congress of the Housing and Economic
Recovery Act of 2008 (HERA), and the resulting authorization of the
NSP, a nationwide special allocation of $3.92 billion in CDBG funding to
enable state and local governments to finance, purchase, acquire, and
redevelop abandoned and foreclosed homes with the primary objective of
stabilizing residential neighborhoods and stemming the decline in
residential property values as a result of widespread foreclosures;
• The allocation by HUD of $530 million of that $3.92 billion nationwide
appropriation for use throughout California, and the distribution of $385
million directly to selected local governments, with the remaining $145
million being allocated for HCD for distribution throughout the remainder
of the state;
• The publication in November of 2008 by HCD of a Substantial
Amendment to its Annual Action Plan, which indicated that the city of
Carson was eligible for $925,366.00 of this NSP funding (which was
subsequently revised upward to $1,329,065.00).
It is worth noting that in that Substantial Amendment, HCD advised interested
local governments that it was requiring that submitted applications include a
formal resolution adopted by that juristiction's governing body. Having been so
advised, staff prepared Resolution No. 08 -150 (Exhibit No. 1), which Council
approved on December 2, 2008, authorizing submission of an application.
However, in guidance contained in the Notice of Funding Availability (NOFA)
that HCD released on April 30, 2009, HCD spelled out a number of provisions
2
City of Carson
Report to Mayor and City Council
June 16, 2009
REPLACEMENT PAGES FOR CC ITEM NO. 18
HCD's application guidelines require a minimum of two public hearings; one for
the Program Design phase, and one for the approval of the application submittal.
Hearings for the Program Design phase were held on April 2, 2009 and May 19,
2009. An additional opportunity for public input into the Program Design phase,
designated as a "public meeting ", was conducted on April 30, 2009 in conjunction
with an overall public workshop on the housing foreclosure issue. The public
hearing for approval of the application submittal will take place at this evening's
meeting. Public notices for the April 2 public hearing and April 30 public meeting
were published in both the Daily Breeze and Our Weekly. The public notice for
the May 19 public hearing was posted in English and Spanish at the customary
public places, including public libraries. The public notice for this evening's
public hearing was published in the Daily Breeze.
V. FISCAL IMPACT
No impact to the General Fund. Should the City be awarded NSP funds, it will
receive $1,329,065.00. While the NSP funds are considered a special allocation of
CDBG funds, program guidelines require that these funds be tracked and
accounted for separately from the "regular" CDBG program.
VI. EXHIBITS
1. Resolution No. 08 -150 (Approved December 2, 2008). (pgs. 6 -7).
6 -16 -2009 Revised Exhibits
2. Revised Resolution No. 09 -059. (pgs. 8 -10), including:
• Joint Cooperation Agreement between the city of Carson and the city of
Lynwood. (pgs. 11 -22); and
• City of Carson Housing Rehabilitation Program Single Family
Relocation Plan (pgs. 23 -28).
3. City of Carson Real Estate Owned Acquisition, Rehabilitation, and Resale
Program Guidelines (pgs. 29 -51).
Document Name
Prepared by: Keith Bennett, Housing & Neighborhood Development Division
Id.Rev1107
4
RESOLUTION NO. 08-150
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARSON, CALIFORNIA, AUTHORINZING
THE SUBMISSION OF AN APPLICATION TO THE
STATE OF CALIFORNIA DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT FOR
FUNDS MADE AVAILABLE TO CALIFORNIA UNDER
THE UNITED STATES DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT'S NEIGHBORHOOD
STABILIZATION PROGRAM.
WHEREAS, the current housing foreclosure crisis has been one of the primary
economic issues of 2008; and
WHEREAS, local governments throughout the nation have been concerned about
the negative effects of these foreclosures on the stability of their residential
neighborhoods; and
WHEREAS, in response to this crisis, the United States Congress passed the
Housing and Economic Recovery Act of 2008, which provided a nationwide special
allocation of $3.92 billion in Community Development . Block Grant Funding, known as
the Neighborhood Stabilization Program, to enable state and local jurisdictions to
finance, purchase, acquire, or redevelop abandoned and foreclosed homes, with the
objective of stabilizing residential neighborhoods and stem the decline in residential
property values as a result of widespread foreclosures; and
WHEREAS, the United States Department of Housing and Urban Development
has provided $530 million in Neighborhood Stabilization Program funding for use
throughout California; $385 million of that funding was provided directly to selected city
and county governments, and $145 million has been provided to the California
Department of Housing and Community Development for distribution among the
remaining California local jurisdictions; and
WHEREAS, the California Depai tinent of Housing and Community Development
has published a Substantial Amendment to its Annual Action Plan which indicates that
the City of Carson qualifies for Neighborhood Stabilization Program funds in the amount
of $925,366; and
NOW, THEREFORE, the City Council of the City of Carson hereby finds and resolves:
Section 1. As part of its plan to preserve and maintain the stability of its
residential neighborhoods and stem the decline in residential property values, the City
Council approves the submission of an application to the California Department of
Housing and Community Development for funds made available to California by the
EXHIBIT NO. 1
REVISED JUNE 16, 2009
RESOLUTION NO. 09-059
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON,
CALIFORNIA, AUTHORIZING AND APPROVING THE SUBMISSION OF AN
APPLICATION FOR FUNDING FROM THE STATE OF CALIFORNIA
NEIGHBORHOOD STABILIZATION PROGRAM (NSP), AND THE EXECUTION
OF A GRANT AGREEMENT WITH THE STATE AND A JOINT AGREEMENT
WITH THE CITY OF LYNWOOD AND TAKING OTHER ACTIONS IN
CONNECTION THEREWITH.
WHEREAS, in response to a nationwide housing foreclosure crisis and the negative effects
of these foreclosures on the stability of residential neighborhoods throughout the nation, the
United States Congress passed the Housing and Economic Recovery Act of 2008, which provided
a nationwide special allocation of $3.92 billion in Community Development Block Grant funding,
known as the Neighborhood Stabilization Program (NSP), to enable state and local jurisdictions to
finance, purchase, acquire, or redevelop abandoned and foreclosed homes, with the objective of
stabilizing residential neighborhoods and stemming the decline in residential property values as a
result of widespread foreclosures; and
WHEREAS, the United States Department of Housing and Urban Development has
provided $530 million in NSP funding for use throughout California; $385 million of that funding
was provided directly to selected city and county governments, and $145 million has been
provided to the California Department of Housing and Community Development ( "HCD ") for
distribution among the remaining California local jurisdictions; and
WHEREAS, the HCD has informed the City of Carson that the City qualifies for NSP
funds in the amount of $1,329,065.00; and
WHEREAS, the City of Carson is permitted to help other jurisdictions implement their
NSP funds to the extent said jurisdictions receive an amount less than $1,000,000.00; and
WHEREAS, the City of Carson desires to enter into the joint agreement with the City of
Lynwood in the form attached hereto as Exhibit A and by this reference incorporated herein (the
"Agreement ") to effectuate its administration and implementation of the Lynwood grant; and
WHEREAS, the City of Carson has held public hearings on April 2, 2009 and May 19,
2009, as well as an additional public meeting on April 30, 2009, to obtain input from the public
into the proposed program;
WHEREAS, the City of Carson has prepared an application to the State incorporating all
the requirements of the NSP program (the "Application ");
NOW, THEREFORE, the City Council of the City of Carson hereby finds and resolves:
Section 1. The City Council has reviewed and hereby approves the Application (and its
contents) for up to $1,329,065.00 for Carson and $916,161 for Lynwood for the following
activities:
COUNCIL ITEM NO. 18
EXHIBIT NO. 2
A -1
PASSED, APPROVED, and ADOPTED this 16th day of June, 2009
ATTEST:
City Clerk Helen Kawagoe
APPROVED AS TO FORM:
City Attorney
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF CARSON
ss.
Mayor Jim Dear
I, Helen S. Kawagoe, City Clerk of the City of Carson, California, do hereby certify that the whole
number of members of the City Council is five; that the foregoing resolution, being Resolution
No. 09 -059 was duly and regularly adopted by said Council at a regular meeting duly and
regularly held on the 3rd day of June, 2009, and that the same was passed and adopted by the
following vote:
AYES:
NOES:
ABSTAIN:
AB SENT:
A -3
City Clerk Helen S. Kawagoe
recipient can combine with one or more other potential recipients who is eligible for an
allocation of $1,000,000 or more from NSP funding so the joint allocation would exceed
that $1,000,000 threshold;
WHEREAS, CARSON is eligible for an allocation of $1,329,065 from NSP
funding and Lynwood is eligible for an allocation of $916,161 and each is eligible under
Tier 1 or 2 (the "NSP Grants "); and
WHEREAS, CARSON and PARTICIPATING JURISDICTION desire to
coordinate the receipt of the NSP funding to which each is eligible to ensure each
receives their allocation for use as provided in the NSP Guidelines and to provide for
CARSON as the lead agency to implement the NSP Grants and is permitted to do so
pursuant to a joint agreement;
WHEREAS, CARSON and PARTICIPATING JURISDICTION have each held two
public hearings prior to adoption of this Agreement; and
WHEREAS, on June 2, 2009, the City Council of CARSON authorized and
approved this Agreement, on June 16, 2009 and the City Council of Lynwood
authorized and approved this Agreement, on June 9, 2009.
NOW, THEREFORE, in consideration of the mutual benefits to be derived by
CARSON and PARTICIPATING JURISDICTION and of the promises herein contained,
it is hereby agreed as follows:
1. Lead Agency: CARSON is hereby designated as the lead entity for
purposes of this Agreement, the application for NSP Grants, administration and
implementation of NSP Grants and, as required by the NSP Guidelines, and shall be the
direct grant recipient for the NSP Grants. CARSON shall administer and implement the
portion of the NSP Grants related to PARTICIPATING JURISDICTION and, as such,
PARTICIPATING JURISDICTION hereby appoints CARSON as administrator and
agent for PARTICIPATING JURISDICTION with respect to the NSP Grant of
PARTICIPATING JURISDICTION, as permitted and approved by governing body of
PARTICIPATING JURISDICTION.
2. Grant Application. CARSON will complete and execute the State's NSP
grant agreement by way of a joint application to be accompanied by an executed copy
of this Agreement. All parties hereby agree to provide to CARSON in a timely manner
any and all information related to their jurisdiction that is necessary to complete the joint
application.
3. Responsibilities of Carson: Consistent with HUD regulations and rules,
Carson assumes responsibility for administering and implementing the NSP Grants on
behalf of both CARSON and PARTICIPATING JURISDICTION in compliance with
applicable program requirements and the law, including but not limited to compliance
with program income and rent affordability after close out of the NSP Grant.
PARTICIPATING JURISDICTION hereby delegates to the extent required under the
2
b. To undertake or assist in undertaking activities which further the
redevelopment of abandoned and foreclosed homes and residential properties,
principally for persons of low and moderate income activities that may include: (i)
Establishment of financing mechanisms for the purchase and redevelopment of
foreclosed upon homes and residential properties, including such mechanisms
as soft seconds, loan Toss reserves, and shared - equity loans for low and
moderate - income homebuyers; (ii) Purchase and rehabilitation of homes to sell,
rent or redevelop, (iii) Establishment of land banks for homes that have been
foreclosed upon; (iv) Demolition of blighted structures; or (iv) Redevelopment of
demolished or vacant properties, funded from NSP Grants and from any program
income generated from the expenditure of such funds.
c. To undertake appropriate State and /or Federal environmental
review with respect to use of NSP Grants for projects, including the National
Environmental Protection Act ( "NEPA ") and /or the California Environmental
Quality Act ( "CEQA "). For each project assisted with NSP Funds, CARSON shall
be the lead entity for compliance purposes with NEPA and CEQA unless
otherwise requested by PARTICIPATING JURISDICTION'S Program
Administrator or unless otherwise requested by CARSON of PARTICIPATING
JURISDICTION.
d. To provide for citizen participation where appropriate and as
required by the NSP Guidelines and /or the U.S. Department of Housing and
Urban Development in their respective jurisdictions, including public noticing and
public hearings as permitted by HCD.
e. To account for and provide appropriate records relating to approval
and use of funds pursuant to NSP Guidelines, HUD regulations and HERA.
f. To only use the NSP Grants for the benefit of low, moderate and
middle income individuals and families pursuant to NSP Guidelines and HUD
regulations.
g. Each party is obligated to take all actions necessary to assure
compliance with the certification required by section 104(b) of Title I of the
Housing and Community Development Act of 1974, as amended, including Title
VI of the Civil Rights Act of 1964, the Fair Housing Act, section 109 of Title I of
the Housing and Community Development Act of 1974, and other applicable
laws.
h. Each party is prohibited from using any portion of the NSP Grant for
any activity in, or in support of, any action or program that does not affirmatively
further fair housing within its own jurisdictions or any of the jurisdictions or that
impedes CARSON'S actions to comply with its fair housing certification.
i. To enter into subrecipient agreements as required by NSP
Guidelines, if necessary. The City Manager of PARTICIPATING
4
provisions of this Agreement are fully authorized under State of California and
local law and the person signing this Agreement has authority to do so on behalf
of such PARTICIPATING JURISDICTION.
c. Each party hereto has adopted and is enforcing:
i. A policy prohibiting the use of excessive force by law
enforcement agencies within its jurisdiction against any individuals
engaged in non- violent civil rights demonstrations; and
ii. A policy of enforcing applicable State and local laws against
physically barring entrance to or exit from a facility or location, which is the
subject of such non - violent civil rights demonstrations within jurisdictions.
8. Additional Compliance. The parties hereto agree as follows.
a. This Agreement shall remain in effect until the NSP Grant funds
and program income received are expended and the funded activities completed.
b. This Agreement cannot be terminated and neither CARSON nor
PARTICIPATING JURISDICTION and no party may withdraw from it while it
remains in effect.
c. None of the parties hereto has authority to veto or otherwise restrict
obstruct the implementation of the approved State NSP application during the
period covered by either party's NSP agreement with the State.
d. Pursuant to 24 CFR 570.501(b), each party is subject to the same
requirements applicable to subrecipients, including the requirement of a written
agreement as described in 24 CFR 570.503.
9. Amendment. This Agreement may be amended or modified only by
mutual written consent of PARTICIPATING JURISDICTION and CARSON and only if
such amendment and modification is consistent with the requirements of the NSP.
Modifications clarifying NSP program requirements may be entered into by the Program
Administrators of CARSON and each PARTICIPATING JURISDICTION without the
requirement of action of the applicable city council on the modification.
10. Notices and Program Administrator. Any correspondence,
communication, or contact concerning this Agreement shall be directed to the Program
Administrator at each party at following addresses:
LYNWOOD
Lorry Hempe, Program Administrator
City of Lynwood
11330 Bullis Road
Lynwood, CA 90262
6
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers, duly authorized, by the CITY OF CARSON
on June 16, 2009, and by the CITY OF LYNWOOD on June 9, 2009.
ATTEST:
Helen Kawagoe, City Clerk
APPROVED AS TO FORM:
By:
City Attorney
ATTEST:
Maria Quinonez, City Clerk
APPROVE
By:
S TO FORM-
Fred a alante, City Attorney
CITY OF CARSON
By:
Jerome G. es. City Manager
G. es, City Manager
CITY OF LYNWOOD
Aw
State of California
June 16, 2009
Page 2
I am a member of the State Bar of California. I opine only as to the laws of the State of
California. This opinion is furnished to you solely to comply with the obligations of the NSP
program application. This opinion is not to be used, circulated, quoted or otherwise referred to
for any other purpose.
Very truly yours,
ALESHIRE & WYNDER, LLP
Dawn C. Honeywell
Assistant City Attorney
01018/0005/69219.01
State of California
June 12, 2009
Page 2
I am a member of the State Bar of California. I opine only as to the laws of the State of
California. This opinion is furnished to you solely to comply with the obligations of the NSP
program application. This opinion is not to be used, circulated, quoted or otherwise referred to
for any other purpose.
Very truly yours,
ALESHIRE & WYNDER, LLP
Fred Galante
City Attorney
01095/0001/69220.01
minimize the displacement of persons from their homes during housing rehabilitation
or reconstruction funded by HUD programs:
1. Provide proper notices with counseling and referral services to all tenants so that
they understand their relocation rights and receive the proper benefits. When
necessary assist permanently displaced persons to find alternate housing in the
neighborhood.
2. Stage rehabilitation of assisted households to allow owner occupants and /or
tenants to remain during minor rehabilitation.
3. Encourage owner investors to temporarily relocate tenants to other available safe
and sanitary vacant units on the project site area during the course of
rehabilitation or pay expenses on behalf of replaced tenants.
4. Work with area landlords, real estate brokers, and /or hotel /motel managements
to locate vacancies for households facing temporary relocation.
5. When necessary, use public funds, such as CDBG funds, to pay moving costs
and provide relocation /displacement payments to households permanently
displaced by assisted activities.
B. Lead Based Paint Mitigation Which Causes Temporary Relocation: On
September 15, 2000, the Final Rule for Lead Based Paint Hazard Control (LHC)
went into effect. Among other things, it requires that federally- funded rehabilitation
must use safe work practices so that occupants and workers can be protected from
lead hazards. At no time should the tenant - occupant(s) be present in work
areas or designated adjacent areas while LHC activities are taking place in any
dwelling unit interior, common area, or exterior. As such, occupants may not be
allowed to remain in their units during the time that lead -based paint hazards are
being created or treated. Once work that causes lead hazards has been completed,
and the unit passes clearance, the occupants can return. The tenant - occupants
may not reoccupy a work area or adjacent area until post -lead hazard
reduction clearance standards have been achieved and verified with
laboratory results. The final rule allows for certain exceptions:
1. The work will not disturb lead -based paint, or create dust -lead or soil -lead
hazard; or
2. The work is on exterior only and openings are sealed to prevent dust from
entering the home, the work area is cleaned after the work is completed, and the
residents have alternative lead free entry; or
3. The interior work will be completed in one period of less than 8- daytime hours
and the work site is contained to prevent the release of dust into other areas of
the home; or
construction specialist will ensure that each tenant occupied unit under the program
will receive a General Information Notice (GIN) (as soon as possible after a loan
application is received) and the tenant will receive a Notice of Non - displacement
(after loan approval), and each tenant occupied unit will have a temporary relocation
benefits form completed for them. These notices will document that each tenant
understands what their relocation rights are, and if they must relocate during the
course of construction, that they receive the proper counseling and temporary
relocation benefits.
A tenant receiving temporary relocation shall receive the following:
1. Increased housing costs (e.g. rent increase, security deposits) and
2. Payment for moving and related expenses, as follows:
a. Transportation of the displaced persons and personal property within 50
miles, unless the grantee determines that farther relocation is justified;
b. Packing, crating, unpacking, and uncrating of personal property;
c. Storage of personal property, not to exceed 12 months, unless the grantee
determines that a longer period is necessary;
d. Disconnection, dismantling, removing, reassembling, and reinstalling
relocated household appliances and other personal property;
e. Insurance for the replacement value of personal property in connection with
the move and necessary storage;
f. The replacement value of property lost, stolen or damaged in the process of
moving (not through the fault of the displaced person, his or her agent, or
employee) where insurance covering such Toss, theft or damage is not
reasonably available;
g.
Reasonable and necessary costs of security deposits required to rent the
replacement dwelling;
h. Any costs of credit checks required to rent the replacement dwelling;
i. Other moving related expenses as the grantee determines to be reasonable
and necessary, except the following ineligible expenses:
1) Interest on a loan to cover moving expenses; or
2) Personal injury; or
3) Any legal fee or other cost for preparing a claim for a relocation
payment or for representing the claimant before the Grantee; or
4) Costs for storage of personal property on real property already owned
or leased by the displaced person before the initiation of negotiations.
or she will be reimbursed for all reasonable extra expenses. The tenant will be
cautioned that he or she will not be provided relocation assistance if he or she
decides to move for personal reasons.
2. Notice of Non Displacement: As soon as feasible when the rehabilitation
application has been approved, the tenant will be informed that they will not be
permanently displaced and that they are eligible for temporary relocation benefits
because of lead based paint mitigation or substantial rehabilitation, or
reconstruction of their unit. The tenant will also again be cautioned not to move
for personal reasons during rehabilitation, or risk losing relocation assistance.
3. Disclosure to Occupants of Temporary Relocation Benefits: This form is
completed to document that the City /County is following its adopted temporary
relocation plan for owner occupants and tenants.
4. Other Relocation /Displacement Notices: The above three notices are required
for temporary relocation. If the City /County is attempting to provide permanent
displacement benefits then there are a number of other forms which are required.
Staff will consult HUD's Relocation Handbook 1378 and ensure that all the
proper notices are provided for persons who are permanently displaced as a
result of housing rehabilitation activities funded by CDBG or other federal
programs.
DRAFT
Table of Content
Intent of the Program
Acquisition
Criteria For Property Aquisition
Single Family
Townhome
Condominium
Location
Target Area
Non Target Area
Price Determination
Ordering the Appraisal
Before rehabilitation Value
After rehabilitation Value
Letter of Intent
Due - Diligence Period
Check List
Condition of Property
RDA / NSP Determination
Making the Purchase Offer
Offer Forms
Counter Offer
Acceptance of Offer
Deposit
Escrow — Opening and Closing
Deposit
Escrow Instructions
Title - City / Agency
Grant Deed
DRAFT
Obtaining Building Permits
Inspections
Building Department Inspection
Housing Division Inspection
Other Agency's Inspection
Request for Payment
Authorization
Processing of Payment
Final Inspection
Job Walk
Notice of Completion
Retention Payment
Resale of House
Sale Price
Re- verify After Rehabilitation Value
Cost Analysis
Final Sales Price
Marketing of Home For -Sale
Marketing Budget
Selection of a Real Estate Broker
Broker Requirements
Type of Listing
Listing Period
Home Buyer Education Requirements
Selection of a Home Buyer Counselor
Certificate of Completion
Receiving a Purchase Offer
Form
Review of Offer
Acceptance of Offer
Resale Affordability Covenant
Intent of the Program
The effects of foreclosures often extend beyond the families who are displaced.
Foreclosed homes become vacant and abandoned — leading to numerous
problems that can decrease property values and destabilize communities.
Inadequately secured and maintained, foreclosed properties can lead to
increased crime, pest infestations, disorder and vandalism. Through the
implementation of an Acquisition, Rehabilitation and Resale (ARR) program, the
Cities is planning to bring stability to neighborhoods within their proposed target
areas. The overall objective of the program is to create decent, affordable
homes and rebuild the neighborhoods that have been affected by the foreclosure
crisis. This will be done by purchasing foreclosed properties at a discount rate,
rehabilitating the properties to meet the Cities' and HUD Housing Standards, and
selling the properties to low and middle- income families at a price based on the
applicant's income and ability to make payments.
Specifically, the City will use funds from the NSP to facilitate the acquisition,
rehabilitation and resale of abandoned or vacant and foreclosed single- family
homes. The City intends to purchase units individually and/or in bulk. The City
will negotiate with lenders and financial institutions to obtain a discount on the
purchase of foreclosed properties. In negotiating with the lenders and financial
institutions, the City of Carson will follow the required NSP purchase discount
requirement of a minimum of 15 percent (15 %).
All of the properties acquired through the program will be sold to households
eaming 120% of Area Median Income (AMI) or below. Homebuyers will be
required to own and occupy the property as their primary residence. The sale
price of the property, to the homebuyer, will be no greater than the total cost for
acquisition, rehabilitation, and holding costs. , Eligible homebuyers will be
required to attend a HUD certified, 8 -hour pre- acquisition home ownership class.
In addition, homebuyers will also be required to obtain a conventional mortgage
loan, at a fixed interest rate.
Homes purchased will be required to maintain a 15 -year affordability covenant. If
the home is sold within the 15 -year period, then the full loan amount will be
recaptured plus a declining equity share based upon the length of
homeownership.
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Page 1 of 17 City of Carson
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The LOI will also stipulate the city's access to the property to conduct further due
diligence.
The city will have 10 business days from receipt of the appraisal to decide to proceed
with the acquisition.
Price Determination
Ordering the Appraisal
Staff will initiate and request an appraisal of the property following the execution of the
LOI between the city and the lender
The purpose of the appraisal is to determine the value for the property, the city, utilizing
NSP funds will pay up to 85% of the appraised value for the property.
Before Rehab Value and After Rehab Value
The appraiser will establish, through analysis, the before rehabilitation value and the after
rehabilitation value. For the purposes of determining which funding source to use when
proceeding to the close of the transaction
A moderate acquisition and rehabilitation, means the value of which constitutes less than
25 % of the after rehabilitation value of the dwelling. For properties that, after analysis,
have been determined to meet less than the 25% after rehabilitation value test, NSP funds
will be expended
A substantial acquisition and rehabilitation, means the value of which constitutes 25% of
the after rehabilitation value of the dwelling. For properties that, after analysis, have been
determined to meet the 25% of after rehabilitation value, redevelopment agency housing
funds will be expended.
The appraisal process should be completed within 10 days of initiating the request for
appraisal.
Due - Diligence Period
Check List
During the 10 day LOI period the city's housing rehabilitation inspector will initiate and
complete a physical inspection of the property to determine the condition of the property.
Condition of Property
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City of Carson
DRAFT
Escrow Documents
The escrow holder will provide the necessary instructions for review and approval to both
purchase and seller. All documents should be returned to escrow agent within 5 business
days.
City staff will review the existing record of title to the property and will request a CLTA
policy to properly insuring the city of any defects in the existing title.
Grant Deed
A grant deed will be prepared by the escrow agent identifying the city or redevelopment
agency as the correct owner. The type of funding for the acquisition will determine the
grantee for the property. If the City uses NSP for the deposit and acquisition dollars for
the site the city will execute the escrow instructions and retain the grant deed. If the
redevelopment agency provides the funding, the Agency will execute and retain the grant
deed.
Close of Escrow
The escrow will close within 30 days from the date of the purchase agreement, unless
another date, sooner than 30 days, is stipulated in the purchase agreement
Securing the Site
Fencing
Once the escrow is closed the site will be secured by the city. The security may include a
temporary fence, boarding up, and or both.
Signage
A sign indicating the program name, city council members, and contact information will
be erected on the site in clear safe visibility. The purpose of the sign is to let the
community know that the city is continuing its efforts to support quality, decent, and safe
housing by rehabilitating this house and that the house will be resold to a qualified
family.
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Page 5 of 17 City of Carson
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Lead Base Paint Testing
Before the work description is completed by the housing inspector, the property will be
inspected by a licensed Lead -Base Paint Testing Service. The testing will comply with
the scope of work provided by the housing inspector and will include the following;
a) Conduct lead hazard inspection/evaluation. During the evaluation, lead inspector
shall determine weather lead -based paint or hazard exit in the unit and provide the
location.
b) Conduct paint testing of all surfaces to be disturbed during the rehabilitation
process
c) Provide a report indicating the findings of the paint testing
d) Prepare a risk assessment in conformance with the requirements under 24 CFR
Sec 35.930.
e) Conduct a final clearance inspection to ensure the dwelling is safe for resale to
new occupants. Clearance will include a visual assessment, dust sampling,
analysis, interpretation, and the preparation of a final report.
The scheduling of the lead inspection will be immediate upon receipt of the request from
the Housing Division. A written report will be available in approximately 4 business days
from the completion of the field inspection.
Environmental Requirements
NEPA and CEQA Clearance
Each property will undergo a National Environmental Protection Agency Clearance
(NEPA) checklist, a California Environmental Quality Act checklist, and if necessary a
SHPO clearance.
If through the check list process a property is determined to be exempt from further
review, the property will proceed to construction, if a further review is required, the
property will be pulled from the inventory and a further environmental study will
proceed.
Staff Cost Estimate
The housing inspector will prepare a staff cost estimate based on the physical inspection,
work description, interview with other divisions (building and or planning division), and
the lead -base paint report.
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Contractors will be have adequate time to efficiently review the job before returning the
bid. Bids that are not complete at the time the bids are due will have their bids denied. No
changes to the certified bid will be allowed.
Picking -Up and Turning a Bid -In
The bidding process will follow the existing bidding process utilized with the City of
Carson's Housing and Commercial Rehabilitation Guidelines. Contractors will be
encouraged to obtain a copy of the bidding requirements prior to picking up a bid. All
bids will be picked up and returned to the City of Carson's Clerks Office.
Staff Review of Contractor Bids
Following the receipt of the contractor bids a registry will be created, identifying each
bid, the contractor, and the amount of the bid. Staff will review the bids and will make a
determination of which bid is most responsive based on the contractors cost, references,
and historical performance of similar jobs.
Award of Contract to General Contractor
Notification
All the contractors who turned in a qualified bid will be notified of the winning bidder.
The review and determination of the selected contractor will be done within 10 business
days of the closing bid date.
Pre - Construction Conference
The selected contractor will be required to attend a preconstruction meeting with the
housing rehabilitation staff at the site. The purpose of the pre - construction meeting is to
review any and all work to be completed, meet the contractor's key staff employees or
sub - contractors, review the construction contract, and answer any questions the
contractor may have
Construction Contract Agreement
The City will provide the necessary construction contracts for the purpose of proceeding
with the construction of the property. The contractor will be required to review, approve,
and adhere to the various agreements, payment procedure, and project closing documents.
It is suggested that the contractor review all documents in advance of meeting with staff
to sign, this should lessen the number of general questions related to the contracts.
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Page 9 of 17 City of Carson
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responsibility's are separate and distinct. The contractor will not rely on any one agency
to cover the inspection responsibility for another agency.
Other Agency's Inspection
There may be other inspections related to the rehabilitation work from Federal and State
agencies.
Request for Payment
The contractor will process the request for payment following the inspection and sign -off
of the item inspected by the housing inspector. The contractor should, at the beginning of
the project, lay -out the payment schedule and coordinate the schedule with the inspector
to avoid delays in processing a payment request.
The payment structure for the contract will be on a reimbursement schedule, the
contractor will start the job, start and complete more than 50% of an item, per the
suggested payment schedule, and the contractor will be reimbursed, pending lien releases
and inspection approvals from agencies.
Authorization for Payment
Following the contractors request for payment and inspection approval from the various
agencies, authorization for payment will be provided to the contractor by the Economic
Development General Manager or his/her designee.
Processing of Contractor Payment
Following the submittal of the contractors approved invoice the housing division will
process the invoice for payment. The contractor will receive payment in accordance with
the City of Carson Vendor Payment Schedule.
Final Inspection
Job Walk
The contractor will notify the inspector of the completion of the job and will coordinate a
job walk of the property. The job walk will allow the inspector and contractor the
opportunity to identify any touch -up work, clarify any outstanding issues related to the
project, and set a project completion and rap -up date for the project. If there is a need to
schedule another job walk date, it will be determined at that time.
Notice of Completion
The contractor will provide the necessary lien releases, material warranties, stop notices,
and provide certifications of surety on any labor and material bond. The Housing
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Page 11 of 17 City of Carson
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Home Buyer Education Requirements
The selected home buyer will be required to attend and complete an 8 hour home buyer
educational course as part of the purchasing conditions.
Selection of a Home Buyer Counselor
The city will provide the buyer with a qualified counselor to complete the educational
requirements. The counselor provided will be well trained and versed in credit
counseling, mortgage lending, and the home buying process.
Resale Affordability Covenant
The City is providing the buyer with a potential home purchase below the market value
of the property and as such the buyer could resale or refinance the property for a profit.
This market driven opportunity creates a conflict with the intended goals of the
Acquisition and Resale Program. To ensure compliance with the program and continued
affordability, the city /agency will require the buyer to review and approve an
Affordability Covenant as part of the purchasing requirements.
The primary purpose of the affordability covenant is to insure the city, state, and federal
agencies that the future occupancy of the home will be maintained at an affordable value.
As part of the covenant conditions the buyer may be required to annually certify their
household income.
The affordability covenant will be prepared by Housing Division and delivered to the
buyer, for review, at the time an offer is presented. The buyer or the buyer representative
is encouraged to review the Affordability Covenant early on in the buying process.
Open of Escrow
Following the approval of the purchase and sale agreement by all parties the City will
open escrow, escrow officer will be determined by the City. The buyers deposit will be
required to open escrow. The purpose of the escrow is to formally close the sale
transaction between the city and the new homeowner, to ensure title is transferred
correctly, the buyers loan is closed and recorded properly, and the proceed from the sale
of the property are properly disbursed.
Escrow Documents
The escrow documents will be prepared and disseminated to all parties. The term of the
escrow will be determined during in the Purchase and Sale Agreement.
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f) Preference will be given to agents who live and work in the City of Carson
Following the receipt of the bids staff in the housing division will review the bids and
determine the most qualified respondents.
Type of Listing Agreement between the City and Agent
The City will use an agreement similar to the Exclusive Right To Sell Agreement. The
City will retain the right to alter, draft, and delete portions of the standard agreement to
comply with the City's contractual responsibilities.
Listing Agreement Period
The Agent will receive a Listing Agreement for a period of 90 days. If the property is not
sold in the 90 day period, the city will evaluate an extension or new agreement. The city
will retain the right to cancel the listing at any time if the agent representative violates
any portion of the representation on behalf of the city.
Receiving a Purchase Offer
The City will entertain offers for the purchase of the property through the agent
representative. The buyer will be required to submit any and all correspondence related to
the intent to purchase the property through the city's agent representative. Any and all
offers will require proof of financing, a copy of the buyers credit score, and a brief
description or biography of the buyers family.
Offer Form of Agreement
The offers submitted through the agent for purchasing consideration will be on the
standard CAR form and will be accompanied by the buyer's deposit. The City of Carson
will provide the final Purchase and Sale Agreement for the buyer to review and approve.
Review of Offer
The city will review those offers that are complete and are reflective of a qualified
transaction. The city, through the agent representative will review and respond to
qualified offers with a acceptable time period that will accommodate both parties.
Acceptance of Offer
The Agent representative will notify the buyer or the buyers agent of the city's
acceptance of the buyers offer. Following the acceptance the city will prepare the final
Purchase agreement which will incorporate the terms and conditions in the original offer
and all counter offers.
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will detail the proposed uses of NSP Program Income and will confirm the jurisdiction's
required compliance with state and federal regulations.
NSP Accounting
All NSP Program Income must be maintained in a separate account(s) from any other
federal funds (Le. CDBG /HOME).
1. NSP Monitoring Requirements
1. An eligible participant in the NSP program must:
• Be at or below middle- income; that is with an annual (gross) income that
does not exceed 120% of area median income; and
• Occupy the property as a principal residence.
Redevelopment Agency Reporting Requirements
An eligible participant in the RDA program must:
Must meet the income eligibility requirement, the gross household income cannot
exceed 120% of median income established by HCD
Certify that the units will be owner- occupied at all times;
NSP & RDA Monitoring Documentation:
• Description of source and application of funds.
• Description of site location (i.e. written description and map).
• Description of site (e.g. single- family residence; 2- bedroom; 1- bath).
• Documentation demonstrating compliance with property standards and
lead -based paint requirements.
• Documentation demonstrating compliance with maximum property value
and affordability requirement.
• On an annual basis, the City will send homeowners an Ownership Annual
Certification form to be filled out and returned to the City within 30 days of
receipt. Homeowners will affirm that they are occupying the home as their
principal residence. The homeowner will be required to submit copies of
two current utility bills as part of the annual recertification process.
REO Acquisition Guidelines Page 17 of 17 City of Carson