HomeMy Public PortalAboutA 1999-07-07 - CDBG.' ,
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AGENDA
COMMUNITY DEVEt,OPMENT BLOCK GRANT ~~ ~ ~;~ ~ ^ Z?`~_
ADVISORY BOARD COMMISSION '`~ " `~
REGULAR MEETING, CRY OI I,YNW000
WEDNESDAY, JULY 7, 1999 CITY Cl FRKS OFFICE
JUl b i tqo~
6:00 P.11•t. ~ PY
LYNWOOD CITY HALL COUNCIL CHAMBERS ~t~t~~i1211~213141$i6
11330 BULLIS ROAD, LYNWOOD, CA 90262 ~
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DONALD PRLM141ER YOLANDA L.E~I'IS
COMMIS'S10NER COMMISSIONER
CONSTANCE FRANKLIN LAMES GREEN
COMMISSIONER COMMISSIONER
VETA BANKS JOANETTE GUTIERREZ
COMMISSIONER COMMISSIONER
OPENING CEREMONIES:
A. CALL TO ORDER:
B. FLAG SALUTE
C. ROLL CALL
D. CERTIFICATION OF AGENDA POSTING
E. APPROVAL OF MINUTES:
MINUTES OF APRIL l4, 1999
F. PUBLIC ORALS:
G. NEW BUSINESS: (ITEhIS ON AGENDA ONLY)
1. INDUCTION OF NEW MEMBER(JUAN BRIGHT)
2. INFORMATIONAL ITEM: HOUSING REHAB. STATUS REPORT '
H. STAFF ORALS
I. BOARD ORALS
J. ADJOURNMENT ~~
Adjourn to the nest rcgularh• scheduled meeting at 6:00 p.m. in the Council Chambers of L~~rj~~ood
Cit.~'Flall, l 1330 Bullis Road, L.~n~~~ood. CA. .
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MINUTES OF A SPECIAL MEETING OF
THE. COMMUNITY DEVELOPMENT BLOCK '
GRANT ADVISORY BOARD COMMISSION
WEDNESDAY, MAY 12, 1999
A. CALL TO ORDER:
Commissioner Primmer called the CDBGAB Commission meeting to order at
6:10. p.m. on the above captioned date. ` ;
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B. FILAG SALUTE:
Commissioner Lewis led the flag salute. All those present participated.
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C. ROLL CALL:
. 1...~ Y~\\'. `\~\..Yti ~~t~tt~t~~.. \....th ;~:~al~. ~.\;~ ;i ~~is..tf~.\\'tt~.~.tttt ...
..•....•.... \.........:t.lY.\Y.\YtftYl\ t \ \ \\ \ YY 1 \ .... ..:::::::: ':::.
Commissioner Primmer Commissioner Green.
Commissioner Lewis
Commissioner Franklin '
Commissioner Gutierrez
Commissioner Banks ;
D. CERTIFICATION OF AGENDA POSTING:
Staff informed the Commission that the Agenda was posted per the Brown Act.
E. APPROVAL OF MINUTES:
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Commissioner Franklin made a motion to approve the Minutes of April 14, 1999.
Motion was seconded by Commissioner Primmer, motion carried unanimously.
F. PUBLIC ORALS:
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Patricia Carr, Lynwood resident and former CDBGAB Commissioner, spoke
during public orals, regarding her concerns of the City's housing program. ; Ms.
Carr shared a letter she'd written (Exhibit A), addressed to the City Manager.
The Letter entailed housing staffs disregard of the CDBGAB Commission/Loan
Review Committee relevant to housing loans and grants in addition to the overall
performance of the program. ~ i
' Ms. Garr stated that the Community Development Department, specifically. Don.
Adams, is processing Rehabilitation Loans and Grants without approval or review
by the Commission. Her concern is that the CD Department is undermining the
Commission's authority.
Ms. Carr also stated that the Commission is required to review all aspects of the
CDBG and HOME program and recommends approval of funding for these
programs annually. However at no time has the Commission .been provided, with
information on the use of HOME funds, or a status report. on the program:: As
part of the Commissions responsibilities, the allocation for HOME and CDBG ~is
approved annually, therefore if any amendments are requested, this information
should be submitted to the Commission for review and recommendation to
Council. This.has not happened in the case of the new housing programs. ~ i
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As a result of the public oral discussion the Commission requested that
Community Development Department, housing program provide the following:
1. A status report on the HOME program to include the fund balance, use
funds and a list of projects completed during FY 1998-99.
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2. Status report on CDBG rehabilitation funds allocated this fiscal year, i.e. 1
amount spent to date and the number of projects completed.
3. Program rules and regulations on the new HOME program.
G. STAFF ORALS:
Staff informed the Commission that their concerns would be forwarded to the
Community Development Director and the City Manager and the requested
information will be submitted upon receipt.
H. ADJOURNMENT:
Motion to adjourn to the next regularly scheduled meeting was made by
Commissioner Primmer, seconded by Commissioner Green. Motion carried
unanimously. Meeting adjourned at 7:30 p.m. ~,~ f
Chairperson
Annette Potts, Project Manager
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May 17. 1999
To: Interim Cit. !Manager i
Ralph 1t". Davis III
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Fte: Fluusing Rehabilitation Program ~
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•I~his curr~5pondc~:e is a formal request, calling for a review of the CI)l3G Advisory Commission
Prexedure~s. Hhich address Residential home Improvement Loan policies. In the past, l.ynwoal
City [:m~luycti, l)on}ea Adams, .has failed to perform his required duty of submitting these .loan
appliwtiuns to they committee for approval. Subsequently, htr. Adams, had begun making loan
detcnninatiun based on his own decisions, without the approval from the CD13(i Advisory ,' 1
Cununissiun, and basexf solely un his oHn conclusions. It ilex's nut matter if the fundinb sourceii
('UF3G ur Ilome, all loans should be subject to the same review and approval by the: Ch13G~ ~
Ael~ isur)~ Commission. ~
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Ilis act~uns nee in complete disregard and disrespcxt, not only to the commissioners, hw also to;the
1.ym«xx1 ta~payinb r~idrnts as HrIL The purpose of the CO13C; Advisory cunurrission is to niake
these determination and recomendations to staff Is I`tr. Adams above the authority of the (`ity
Council, Cit} Atanaber, Community Development Director and IFl1D C;uidelines?
I am r~~uexting your .immediate response within ten days.
Patricia ('are
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3812 l.eSage
Ly n--~exxl, Ca. 90262
cc:
City Attorney ~ j
City Council `
Annette Putts ~
IIUI) In~p~~tur (;cneral
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1~u: Interim City 1`lanagcr,
Ralph ~'. t)avis, 111
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Re: Redevrlopmcnt Agency 1`teeting
December 22, 1998 ;
E3ruw~n Act Violations and Compliance '
~•ith the regulation regarding public
llcaring and Citilcn participation ~
'I his Icttrr is to address the L}~nwood Redevelopment Agency mcctinF of 1)cccmtx:r'22~,
Ie)y8, aeaiuns ~tirrc illegally talon un itcnu which, by Stag and I•cdrral la~V rcyUlrc ~ ~
public hcarinb.
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"I~hc 13ru«~t Act advertising specifically states that the items ofthis type: and nature rcyuire
due pu,ting, advertising and notice ofa public hcarinb. 'I~he city also shoulJ liavc had a
public hearing to amend the 1998-1999 consolidated plan prier to allocating ~~(1,U(lp {
dollars in llumc funds fur the first time home Buyers Program. ~ ~
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Therefore, at this time, I am requesting that all actions be dc;clared invalid and that
Rcdcvclupnx:nt Agency correea all illegalities.
1 am. at this time, requestinb clarification within 1U days, to aeldress the: concerns I hav j
stated in this letter. .
Patricia Carr ~
3832 l_eSage
LywouJ, Ca 90262 ~ '
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City Attorney
City Council
Annellt' Putts
HUI) lnspcctor General
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DA•I~E
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June 10, 1999
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1lUNURABLE CHAIRPERSON AND AUVISURY I30ARU
t`fE:~1HERS
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(~ Ru~l: Gar}• [). Chicots, Community De~•elopment Director
Dun}ea Adams, [lousing Project I•fanager
SUliJla' l~: t'I)l3U AI)viS(.)R1' HUAKI) ltl:(1U[:~ I~
'fhe fullu~~ing report is in response to the specific items that ~rere addressed at the: j
Cummunit} Development Block Grant Advisor}• Hoard meeting of Rfa}• 13, 1999..
regarding l lousing Rehabilitation.
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Status Report R~~r~ dine [ Ise Of HOI~tE Program Funds
Since Januar}•, 1999 the Community Development Department has been in the process of
implementing a new Affordable Flousing Program. The primary purpose for this riew
program is w address the Cit}•'s housing goals and strategies and expand housing j
orportunities tier lu~~ and moderate income families. Although this program is ~~~ell I
intrntuncd, the !lousing Division statTregrets not pro~~iding the Ad~~isur}• Huard.~ti•itfi the
program infonnatiun for review. Due to this oversight, a complete infurn~ational ~ac~et
regarding the HOME Program is being presented fur the Board's revie~~• and reference.
Additionally, staff will continue to submit regular status reports on a quarterly basis of
upon request and, in the future, any amendments to the NOh~1E Program will be ~ 1
submitted to the Huard fur re~ ie~~ and recommendations to City Council. i
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[.uau Revie~~ s
7~he Advison• Board acts as the Review Committee for Cl)HG funded loans and grants.
"fhe Lity's Atlurdable Housing Programs are funded with HO1\1E funds and ~
Redevelopment Agency set aside funds. The program guidelines provide financial:
assistance in the form of loans and grants to homeowners, lirst time homebuyers, ! ~
Community l lousing Development Organizations and for batik-owned property. ~ {
The lending mechanisms for the three new programs require approval by the LRA
The Advisory Board will be provided status reports for not only housing rehabilitation
but all program cumlwnents. j
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Ef01\tE ProLram Fund Balance ~ ~
Attached tilt the Advisor}• Board's reference is attached the Fiscal Year 1999-300
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CDRG:~l3 Status Report
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Junr Il-.I')y9
1lU~tE Program Budget listing the total amount of funds, projected use of funds and~list
of propose .projects.
'1'o datc no grants ~r loans funded «~ith CDBG funds ha~•e been appm~~ed by staff ~~•ithout
the appro~~al of the CDE3G~8. Four grants ha~•e been funded «~ith F10NlE Program J~w~ds
and t~~u ha~~e been cumpl~tcd and t~~o are under construction. ~ f
~Wt_~~ lts;j~~-rt ~~u t~L)LL Itchabilitation l~un~is
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At this time, there are no C DE3G funds allocated for housing rehabilitation. ! lowe~~er,
there are ?8 acti~~e caws to be .funded «ith }~OI`lE funds. The status of these cases are:
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- :application appro~~al process 10 ~ ~
- Propert}' Inspections 5 `. j
- «'ork «'rite Ups 3 :'
-Preparing 13id Documents 1
- Out to E3id 3
-Under Construction 3
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- Cumplet~d 3 i
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7~he tflousing Dirision stafTrespecti~•ely submits this report to the CDBG Advisur}~ 131oard
an~i ~~--ill be a~ailabl~ to pro~~ide an}~ additional infurtnatiu~t ar~d clarification. ~
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PRU(:1tA~1 U£SCRIPTIUti F.l'.1999-00 . .
`I he pity of l.ym~uod is allocated funds by the Department of housing and Urban Develo[mcnt
to participate in the HO!~]E In~esunent Partnership Program fur the purpose of strengthening
public-prig ate .partnership to pros ide affordable housing to residents in the community: The City
has participated in the ROME Program since F.l'. 1991-1992 and received the folluwinb a~ nual
allocations ul lunding : ~
• F.l'. 1:992 5750.000.00
• f=.l'. 1993 5376,1100.00 ~
• F.l'. 199 Saaa,000AO
• F.l'. 199 5~81,OU0.00
• F.l'. 1996 5568,000.00
• F.1'. 1997 S556,00Q.OU ~
• I~:.1'. 1998 S58a,000,0U i
• F.Y. 1999 S630,000.00 ~
The City may use the H0~1E funds to carr}~ out multiyear housing strategy through acquisiition,
rehabilitation. and nes- construction of housing . The City is able to provide assistance` ui a
number of eligible .forms, including loans, advances, equity imestrnent, interest subsidies, and
other fornts of investments that the City considers solvent and are within the established
guiJelin~s of the IIUD regulations.
1'RUG1tA,11 U13.1Ef:'I'1~'ES
. To expand the suppl}~ of decent,. safe, sanitary and affordable housing within the City of
I:y n~~ oud.
2. Mobilize and strengthen for-profit and not-for-profit developers to design and implement ~
strate~ties fur achieving an adryuate supply of decent, safe, sanitar}~, and affordable huusiri g.
3. Proe~iJe to the cumrnunity on a coordinated basis various types ofassistance including ca[ital
invrsUncnts, mortgage assistance, rental assistance, and other federal assistance ncedref lu
A. To make new construction, rehabilitation, substantial rehabilitation, and. '
acquisition of such housing feasible. ~
B. To.promote the development of partnership among private industry and non
profit organizations able to utilize effectively all available resources to provide
more of such housing.
C. To develop and refine on an ongoing basis a selection of model programs
incorporating the most effective method for providing affordable housing arid
accelerate the application of such method where appropriate to meet the Cit:}~'s
housing needs while utilizing the HOME funds to the maximum extent feasible.
D. To expand the capacit}• of nonprofit community housing development
urganiratiuns to de~elup and manage decent sate and affordable housing
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• ~ t roduces housin ~ stork that is a~•~il~~hle
t o utsurc that the. F ublrc s rm•estmen s p !~ ,
and atl~rdahle to lu~~ income families 1'ur the properties remaining useful tile, is
appropriate to the neighborhood surroundings, and, wherever appropriate, is
mired income housing.
To assist ~ crv lo~~ income and low• income families to ohtain the skills. and
knu~~ ledge necrssar~ to become responsible humeu~~ Hers and tenants.
O~'ER~'1E~ti' AhU ACTIVITIES
The City's Communit}~ Development Department is pursuing the development of several
projects utilizing the llUl\tE furids in each project. These projects vary in scope and size bui, are
all Jc~iLncJ to increase, improve, repair demolish and develop the affordable housing stock in
the C.'it} of t_ym~ood, as identified in the City's approved Consolidated Plan. 1-he I)enartinent
makes all reasonahle effort to maximize participation by the private sector including nanprafit
urganiaatiems and I~~r profit entities in the implementation of affi~rdahle homeo~.•ncrship ~thri~ugh
the acyui~iriun, ne~~ cunstnrctiun, rccunstructiun, ur moderate ur suhstantiat rehahilitntiun of
nun-iu~ur} housing ~~ ith suitable amenities, including real properties acyuisitiun, ( site
impru~entents, cumersiuns, and demolition's.
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L PR )tECTSiPROGR_AMS
The City's housing activities imoh~e development projects and programs that reflecting a broad
range of concerns relative to the elimination of blight, and the enhancement of the City's
residential communities by .providing decent, safe, sanitary and new affordable housing. The
categories are broken do~~n into t~~o areas Noosing Development Projects, and Affordable
P (causing Programs.
1~he Noosing 1)evelupment 1'rojrcts pursued during the 1999-00 l~.Y. are as such:
Project-6~ zero lot line homes to be constructed on Atlantic Aye between Macmillan
and Orlanda Street.
Goal- Complete construction of the units, sell the NUME units to low or moderate
income families
$enior Housiae Proposal
Project-Tlte development of a 60-70 unit senior citizen housing rental project.
Goal- •To negotiate ~~ ith a developer a proposal to build and manage the site as a senior
housing complex.
S_urn• Temnte Community Det•elopment Corp: 11420 Stafe Street
Project-One three bedroom t~~o bath 1550 square feet single Famil}~ Dwelling.
Goal- 1-u sell the site to a lu~~ income famil~•.
Resource ~fanag~ment AlTiliate GrouR- 12416 l.Qng Beach Blvd.
I'ruject-•1•he dee~elopment of a 72 unit mix use housing site consisting of owner occupied
units and rental units.
Goal- \Yurk ~~ith Resource Management Afrliate Group to negotiate the. terms of the
development.
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Wctt Coact united - L~•nhood Koad !Fir
Project-8 single family d~~ellines ranging in size from 1300 to 1500 sq.ft 3 and 4
bedrot~m units to be s~~l~ to lu~~ income first time homebuyrs.
Goal- Complete ~~~nstnr~tiun of the units and sell the ne~~ homes to low or moderate
in~~~nrr tamilics.
~@F't t it ~LL)U De~~elonment Co - EdgebrooklPhillins
Project-~l~hc de~elupment of 18 single family d~~ellings approximately 1500
sq.tt 3 bedroom 2 bath to be sold to low income fiat time homebuyer
Goal- T~o start construction of the development.
~~Ih~'ieK Terrace - 35~01<lartie Lather King
Project- The Rehabilitation of a 88 unit elderly care facility
Goal- ~l~u monitor the facility fur compliance with hUU regulations.
~~~lL~inplc.~.amlh.liQ~int:.Yrs~~st=Atlantic & Carlin
i'roject - '1'u e)r~rl~~p 40-~0 Alli~rJahlc Single Tamil} [)~«Ilings utilizing various City
anJ 5tatc I~unJ suur~~s.
access Compl!•oii)' ~Nou+ing - Jo+enhine & 1st Street
Project. -The Ue~elopment of tau single family d~~elling
Goal - To complete negotiations µ ith the developer, execute a UUA, start construction.
~r~theast Los Aneele~ Counik Community yecelonment Ccr>2oration ~)EL.AC- CUC- ~.
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]1433 S. atlantic ~
Project -The Rehabilitation of a three unit rental property ~
Goal - ~Tu complete the loan agreements and start ~~ork on the building
The Affordable housing Programs pursued during the 1999-00 F.Y. are as such:
tte•id~:ntial r;nei ~llulti-~atnil2 lluu~iug KehaL-ilitatiun - F.l' 1998-99 budget $71-t,fiUO
Funding Source 100°."o hOR1E
The. residential rehabilitation program will be targeted to the low and moderate homeowners and
will offer financial and technical assistance to repair code violations and basic housing repairs.
The City will offer a deferred loan amount up to 530,000 for and a grant amount up to 55,00'0 for
single 'family dwellings. The mullet-family loan program will offer a deferred loan in the amount
of 545,000 to assist. in needed repairs such as code violations, health and safety issued and
cosmetic repairs to the large population of rental properties. i
Dollars available for Single Family
Uelerred Loans.
l)ullars available tier Single Family Grants
Dollars available for C`fullet-Family Rehear
5240,000 - 8 Loans at a max. loan amount of
530,000 per applicant 1'
5 75,000 - I5 l~rants at a max. grant anwurit of
SS,000 per application
5360,000 - 8 Loans at a max. loan amount of
545,000 per applicant
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Purchase an~.,I3th;tlrilitation P.~~m - FY 1999-00 Program Budget $700,000 :."
Funding Source 100% HOtifE •
1•he prugcam has been established to enable the City to purchase and rehabilitate properties
abandoned and currently o~~ned b} the Department of Housing and Urban Development (ItUD)
and uther bank•Real Eatate O~.ned (ROE) properties that are located in the Cit}•. Prgpert;ies once
purchased ~~ill be rehabilitated and made mailable for immediate resale to eligible lu~~•. rneome
huuselwlds making 6t easier fur the bu}er to qualify for a ne~~~ first loan.
Prc~cceds fmm the sale of the properties ~~ill be used to replenish the program costr and to
purchase anuther propert}•. It is anticipated that the IIUU homes will be purchased at a iiiscuunt
of 10 - 30°.0. Uther bank Roe's «-ill be purchased at the lo~~est negotiated price. (See Flo~~~chart
"B"). The total program budget for the Purchase and Rehabilitation program for Fti' 1998-~ 9 is
as such:
I)ullars a~•ailable for property acquisition $x60,000 - a houses at 51 15,000 per house
Uullars a~•ailablc fur rehabilitation $215,00 -Total cost per house $53,750
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First -Time tiomebu~jjl$ rogram F. Y. 1999-00 Budget $450.000
Funding Source 100°~o HOh1E
"the F THH program has been developed to provide first time homebuyers with the financial
assistance necessary for homeo~~nership and to create an opportunity for low/moderate income
families to u«n there o~~n home. The loan is in the form of a deferred payment second mortgage
~~ith a dollar amount up to $20,000. The FTHB program is designed to assist qual~i(ied
households ~~ith du~~n payment, closing cost, and any additional costs for the purchase ~of a
home in the City of L.}•n~~ood. (See flo~~•chart "C"). The total program budget fur the First-Time
i lumebuy ing I'rugram 1'ur F.l'. 1998-99 is as such:
vollars available for deferred loans $460,000 - 23 loans at a rnax. loan amount of $20,
per applicant.
11. l~he following is provided as an overview of the HOh1E Investment Partnership Pry
Funding Allocations and existing contractual activities:
h.~'. 19.92- T'utal alla:atiun 5750,000.00
5562.Um0:00 Emerald Village Project/L}~nwood Redevelopment Agency ,'
bI 1.2,500.00 Contract with Habitat for Elumaniq• ~ j
S 75,000.00 Administration
F.Y. 1993 Total allocation 5376,000.00
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$282,000.00 flealthvie«• Rehab/Lynwood Redevelopment Agency
56,400:00 Contract with Curry Temple
$ 37.600.00 Administration t
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F.ti'. (y94 "l~utal Allocation Saa4,000.00
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5333.nt)0.00 Health~•ie~~ . ~~'est Cost Unites/l:.}m~oud Rede~~elopment Agency .
$ 66,6UU_UO Cuntra~t ~~ith Ct,rr~ ~I•cmple
$ ~ta,JUU:UU Administration ,_
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F.}'. 1995 ~
Total Allocation S-181,000.00 '~
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$360,0'00:00 Affordable Housing Programs~Lym~ood Rede~~elopment Agcncy,
$ 7'_.10.00 Contract ~~ith Humana Economic Group
S a8,lU0.U0 Administration ~'
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F.Y 19.96 1`otal Allocation S568,000.00
Sa39,500A0 Affordable Flouring Programs/ Lym~~ood Redevelopment Agency
$ 87,ytIU.UU -$39,O~U .\Ilucated to Curr~~ Temple
-$J8.8iU A11~-catcJ to Access Cunununit~ I1~-usin~t '
S 58,611(LOU AJmini~tratiun
I~.}'.1997 'iutal Allocation 5556,000.00
5.117.OOU.00 Af3'ordabte Housing Programs/Lymaood Redevelopment Agency.
583,~30U.00 -55~,21a Allocated to Access Community Housing ~:
-$28,186 Allocated to SELAC CDC.
555,600.00 Administration ' ,
F.Y.1998 Total Allocation 5581,000.00
Sa38.p00.00 Affi~rdablc Housing Programs/I_yn~~~a~d Rcde~•elopmcnt Agrnc}~
587,6Uti.QO -S 16,8 t a ;~Ilucated to SI:I.AC CIX' ~'
$70,786 AVAILj1t3LE FOR CHUO
558,•3l)O.UO Administration
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F.}' 1999 ~fotal Allocation $630,000.00
Sa72,500 ~ Affordable Nousing Programs/ Lynwood redevelopment Agency:,
591,500 AVAILABLE FOR CNDO
$63,000 Administration
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111 HOME In~~estment Partnership Summary Tot>il
7~uta) I'rojrct and Program Allocation (92-99) 53,30x,000.00
'Total CHUO Contracts S •123,61.00
~Tutal Administrative Dollars S 365,500.00
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Totaf Uncommitted Project and Program Dollars S 0.00 ~
Total Uncommitted CIIDO S 165,286.00
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