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HomeMy Public PortalAboutA2011-02-15LRA�4 °F LYry LYNWOOD REDEVELOPMENT AGENCY R GIPO4� 11330 BULLIS ROAD LYNWOOD, CALIFORNIA 90262 -3845 (310) 603 -0220 Aide Castro, Chair Jim Morton, Vice Chair Alfredo Flores, Member Ramon Rodriguez, Member Maria T. Santillan, Member This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. Materials related to an item on this Agenda submitted to the Agency Board after distribution of the Agenda packet are available for public inspection at the Agency Secretary's office at the above address during normal business hours. Any person who has a question concerning any of the agenda items may call the City Manager at (310) 603- 0220, ext. 200. AGENDA LYNWOOD REDEVELOPMENT AGENCY FEBRUARY 15, 2011 REGULAR MEETING 5:00 P.M. LYNWOOD CITY HALL 11330 BULLIS ROAD AIDE CASTRO CHAIR JIM MORTON VICE CHAIR RAMON RODRIGUEZ MEMBER ROGER L. HALEY EXECUTIVE DIRECTOR 7,✓ ,, ?osk RECEIVED FEB 10 2011 CITY OF LYNWOOD CITY CLERKS OFFICE G , +� clfrk b� l;.a ALFREDO FLORES MEMBER MARIA T. SANTILLAN MEMBER FRED GALANTE AGENCY COUNSEL OPENING CEREMONIES A. Call Meeting to Order B. Roll Call (FLORES- RODRIGUEZ- SANTILLAN- MORTON- CASTRO) C Certification of Agenda Posting by Secretary PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS CONSENT CALENDAR All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Agency or staff request specific items are removed from the consent calendar for separate action. 1 MINUTES OF THE PREVIOUS MEETING Regular Meeting of January 18, 2011 Regular Meeting of February 1, 2011 2. RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS 3. HOUSING REHABILITATION PROGRAM (HRP) GUIDELINES - CLARIFYING PROJECT ELIGIBILITY AND REVISED MAXIMUM ASSISTANCE Comments: An amended HRP- Program Guidelines is presented for Council consideration to address HOME statutory requirements which are not contained within the current guidelines and to provide greater clarity to the HRP's operating parameters and framework. The revised guidelines also expand the program by incorporating the potential use of Agency Low- and Moderate Income Housing Set -aside funds (LMIHF). Recommendation: Staff recommends that the City Council and the Agency adopt the attached resolution entitled: "A JOINT RESOLUTION THE CITY COUNCIL AND LYNWOOD REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD APPROVING AMENDMENTS TO THE HOUSING REHABILITATION PROGRAM GUIDELINES' CLOSED SESSION NONE ADJOURNMENT THE NEXT REGULAR MEETING WILL BE HELD ON MARCH 1, 2011 AT 5:00 P.M. AT THE COUNCIL CHAMBERS OF CITY HALL, 11330 BULLIS ROAD, LYNWOOD, CALIFORNIA. 0 AGENDA STAFF REPORT DATE. February 15, 2011 TO Honorable Chair and Members of the Agency APPROVED BY Roger L. Haley, Executive Directd_� PREPARED BY Maria Quinonez, Secretary Kristina Santana, Deputy City Cle I-5 SUBJECT Lynwood Redevelopment Agency Minutes Recommendation: Staff recommends that the Lynwood Redevelopment Agency approve the following minutes. • Regular Meeting —January 18, 2011 • Regular Meeting —February 1, 2011 Background: N/A Discussion & Analysis: N/A Fiscal Impact: N/A Coordinated With: N/A ITEM LYNWOOD REDEVELOPMENT AGENCY REGULAR MEETING January 18, 2011 The Lynwood Redevelopment Agency of the City of Lynwood met in a regular meeting in the Council Chambers, 11330 Bullis Road on the above date at 5:32 p.m. Chairman Castro presiding. Members Rodriguez, Santillan, Morton and Castro and were present. Member Flores was absent. Also present were Executive Director Haley, Agency Counsel Galante, Secretary Quinonez and Treasurer Alatorre. Secretary Quinonez announced that the Agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) l RIN PUBLIC ORAL COMMUNICATIONS NONE CONSENT CALENDAR It was moved by Member Rodriguez, seconded by Chair Castro, to approve the consent calendar and to receive and file staff reports. AYES MEMBERS, RODRIGUEZ, SANTILLAN, MORTON AND CASTRO NOES NONE ABSTAIN. NONE ABSENT MEMBER FLORES Item #1. MINUTES OF THE PREVIOUS MEETINGS. Regular Meeting of December 21, 2010 (CORRECTION) Regular Meeting of January 4, 2011 Item #2. RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS RESOLUTION NO. 2011.002 ENTITLED: RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS Item #3. LYNWOOD REDEVELOPMENT AGENCY'S FINANCIAL TRANSACTIONS REPORT TO THE STATE CONTROLLER FOR FISCAL YEAR 2009 -2010 Report received and filed. Item #4. PROFESSIONAL SERVICES AGREEMENT WITH MG RESOLUTIONS, INC ENVIRONMENTAL CONSULTING SERVICES REGARDING THE PROJECT AT LONG BEACH AND IMPERIAL WITH DEVELOPER M &A GABAEE Member Santillan abstained from this item. RESOLUTION NO. 2011.003 ENTITLED: A RESOLUTION OF THE AGENCY BOARD OF THE LYNWOOD REDEVELOPMENT AGENCY AMENDING RESOLUTION 2010.058 AND APPROVING THE REVISED CONSULTING SERVICES AGREEMENT WITH MG RESOLUTIONS INC FOR THE PREPARATION OF THE ANALYSIS UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT REGARDING THE PROPOSED PROJECT AT LONG BEACH AND IMPERIAL WITH DEVELOPER M&A GABAEE CLOSED SESSION N 0 - Mk ADJOURNMENT Having no further discussion, it was moved by Member Rodriguez, seconded by Vice - Chair Morton and carried to adjourn the regular Lynwood Redevelopment Agency meeting at 5:33 p.m. Aide Castro, Chair Maria Quinonez, Secretary LYNWOOD REDEVELOPMENT AGENCY REGULAR MEETING February 1, 2011 The Lynwood Redevelopment Agency of the City of Lynwood met in a regular meeting in the Council Chambers, 11330 Bullis Road on the above date at 6 p.m. Chairman Castro presiding. Members Flores, Rodriguez, Santillan, Morton and Castro and were present. Also present were Executive Director Haley, Agency Counsel Galante, Secretary Quinonez and Treasurer Alatorre. Secretary Quinonez announced that the Agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORAL COMMUNICATIONS NONE CONSENT CALENDAR It was moved by Member Santillan, seconded by Vice Chair Morton, to approve the consent calendar and to receive and file staff reports. AYES: MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON AND CASTRO NOES NONE ABSTAIN: NONE ABSENT NONE Item #1. RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS RESOLUTION NO. 2011.004 ENTITLED: RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS Item #2. Member Rodriguez pulled Item #2 — TREASURER'S QUARTERLY INVESTMENT REPORT It was moved by Member Rodriguez, seconded by Vice Chair Morton, to discuss item #2 jointly with Item #16 of the City Council agenda and Item #5 of the Lynwood Public Finance Authority agenda. It was moved by Chair Castro, seconded by Member Flores, to approve staff recommendation and receive and file the report. AYES MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON AND CASTRO NOES NONE ABSTAIN: NONE ABSENT NONE Item #3. Member Rodriguez pulled Item #3 — TREASURER'S INVESTMENT POLICY STATEMENT It was moved by Member Rodriguez, seconded by Vice President Morton, to discuss item #3 jointly with Item #17 of the City Council agenda and Item #6 of the Lynwood Public Finance Authority agenda. It was moved by Chair Castro, seconded by Member Santillan, to approve staff recommendation. RESOLUTION NO. 2011.005 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD APPROVING THE TREASURER'S INVESTMENT POLICY STATEMENT AYES. MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON AND CASTRO NOES NONE ABSTAIN: NONE ABSENT NONE Item #4. Agency Counsel pulled Item #4 — DISCRETIONARY INVESTMENT MANAGEMENT AGREEMENT Agency Counsel Fred Galante stated that the resolution should state, "the agreement be approved subject to the City Attorney's approval of the form" Chair Castro convened Item #4 with Item #18 of the City Council agenda and Item #7 from the Lynwood Public Finance Authority agenda. It was moved by Chair Castro, seconded by Vice Chair Morton, to approve staff recommendation with the correction to the resolution by the City Attorney The motion died on the floor 2 After discussion by Council, it was moved by Vice Chair Morton, seconded by Chair Castro, to approve staff recommendation. RESOLUTION NO. 2011.006 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD TO EXECUTE THE DISCRETIONARY MANAGEMENT AGREEMENT WITH MAIN STREET CAPITAL ADVISORS, LLC AYES: MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON AND CASTRO NOES NONE ABSTAIN: NONE ABSENT NONE Item #5. Member Rodriguez pulled Item #5 — AUTHORIZATION TO ISSUE LYNWOOD REDEVELOPMENT AGENCY TAX ALLOCATION BONDS (PROJECT AREA A), 2011 SERIES A AND LYNWOOD REDEVELOPMENT AGENCY TAXABLE TAX ALLOCATION BONDS (HOUSING PROJECTS), 2011 SERIES B It was moved by Member Rodriguez, seconded by Vice Chair Morton, to discuss item #5 jointly with Item #10 of the City Council agenda and Item #4 of the Lynwood Public Finance Authority agenda. It was moved by Vice Chair Morton, seconded by Member Santillan, to approve staff recommendation. Agency Counsel Fred Galante stated that procedural requirements require the agencies to act on this item as new business and not under consent calendar He then read the titles of the resolutions for procedural purposes. Chair Castro stated that this item was supposed to be a new business item and not a consent calendar item. Project Area A — Subordinate Lien 2011 Series A RESOLUTION NO. 2011.007 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE AND SALE OF TAX ALLOCATION BONDS TO FINANCE REDEVELOPMENT ACTIVITIES WITHIN OR FOR THE BENEFIT OF THE AGENCY'S PROJECT AREA A, APPROVING THE FORM AND AUTHORIZING EXECUTION OF RELATED DOCUMENTS AND AUTHORIZING OFFICIAL ACTIONS Housing Projects- Subordinate Lien 2011 Series B RESOLUTION NO. 2011.008 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE AND SALE OF TAXABLE TAX ALLOCATION BONDS TO FINANCE LOW AND MODERATE INCOME HOUSING ACTIVITIES WITHIN THE GEOGRAPHIC BOUNDARIES OF THE CITY OF LYNWOOD, APPROVING THE FORM AND AUTHORIZING EXECUTION OF RELATED DOCUMENTS AND AUTHORIZING OFFICIAL ACTIONS RESOLUTION NO. 2011.009 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AUTHORIZING THE USE OF LOW AND MODERATE INCOME HOUSING FUNDS FROM ANY PROJECT AREA TO BE USED ON LOW AND MODERATE INCOME HOUSING PROJECTS CITYWIDE AND MAKING BENEFIT FINDINGS IN CONNECTION THEREWITH RESOLUTION NO. 2011.010 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE INVESTMENT OF BOND PROCEEDS IN THE LOCAL AGENCY INVESTMENT FUND AYES: MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON AND CASTRO NOES: NONE ABSTAIN: NONE ABSENT NONE CLOSED SESSION Agency Counsel Fred Galante announced that an item of anticipated litigation in which the Redevelopment Agency holds a lien hold interest, had come to the Agency's attention after the posting of the agenda. He stated that the Agency received a demand from the owner and the Agency could be subject to litigation. It was moved by Mayor Pro Tern Morton, seconded by Council Member Flores to add the item to the Lynwood Redevelopment Agency Closed Session Agenda. AYES: MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON AND CASTRO NOES NONE ABSTAIN: NONE ABSENT NONE Item #6. WITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO SECTION 54956.9 CONFERENCE WITH LEGAL COUNCIL Anticipated litigation One case pursuant to government code section 54956.9 The Lynwood Redevelopment Agency held a discussion and no reportable action was taken. ADJOURNMENT Having no further discussion, the regular Lynwood Redevelopment Agency meeting was adjourned at 8:07 p.m. with a moment of silence in honor of Sergeant Hellmold, Captain Hellmold's father in his passing. Aide Castro, Chair Maria Quinonez, Secretary 5 AGENDA STAFF REPORT DATE. February 15, 2011 TO Honorable Chairperson and Members of the Agency Board APPROVED BY Roger L. Haley, Executive Direct PREPARED BY Robert S Torrez, Assistant City Manager Monica Ochoa, Accounting Techniciana( SUBJECT Approval of the Warrant Register Recommendation: Staff respectfully recommends that the Agency Chairperson and Board Members approve the warrant register for Fiscal Year 2010 -2011 Attached Warrant Register dated February 15, 2011 ITEM -2-M - I d m d a u c d rn Q N N J G d O L > V y 0 8 3 C T J 0 w o o w o 0 o F F w w LL LL W W Z Z w w U) O (7 fC N N w m N (/) N N N m mm mm mm W m m Q It W CC N N U m mm mm mm J m m m (L = o a f- 00 m N m In U) m u) U) m m m m [C K N N n U r r U n r U r r a m U w m m w w W (p (p N m > ow >mm >mm a mm w o Z 0 3 o Z m p o o r o N o o N o o N o o y o 0 Q m w M W W M a m m m W m m W m m W m m m w O o o 0 0 0 o d o o d d_ o o w o o Y r w r a n W U) n rr�nn�rr w nr Z N_ a N LL (V Q N_ N_ N U N v ❑ N N o ❑ (V I N ❑ N I N LL N I N w O ` O O O m a O ` m RI N m Q m N J J m U m g U 9 m m U A m U m m O O a ( t i I I f ( i t t I ( 1 � ) r i i C l i f ( ( i J ( J � f r 0 0 0 0 0 0 0 o O o 0 N N n r m m In In o m m w f V O O O m m O O N N V O m m m m 6 N m m n 0 M M O C ) o t O O N m m N m (G m m m m n 0 0 Ol 1 � r N p m m M M � O) N N m m 0 0 o q o0 99 99 99 99 00 m mm m m 0 w o o w o 0 o F F w w LL LL W W Z Z w w U) O (7 fC N N w m N (/) N N N m mm mm mm W m m Q It W CC N N U m mm mm mm J m m m (L = o a f- 00 m N m In U) m u) U) m m m m [C K N N n U r r U n r U r r a m U w m m w w W (p (p N m > ow >mm >mm a mm w o Z 0 3 o Z m p o o r o N o o N o o N o o y o 0 Q m w M W W M a m m m W m m W m m W m m m w O o o 0 0 0 o d o o d d_ o o w o o Y r w r a n W U) n rr�nn�rr w nr Z N_ a N LL (V Q N_ N_ N U N v ❑ N N o ❑ (V I N ❑ N I N LL N I N w O ` O O O m a O ` m RI N m Q m N J J m U m g U 9 m m U A m U m m O O a ( t i I I f ( i t t I ( 1 � ) r i i C l i f ( ( i J ( J � f r r O O m Z O i 0 O 0 J L) U J ] 2 D J_ ) Q ❑ > m 0 M O > o J N l i[) U) U) i ) J 1 � L O _ f i r i � r 0 N N o N f >> > O Y U { _ F W Z Q ( m t > f V i ) o t ) o t 0 o � N 1 ) r N 1 r O O m Z O i 0 O 0 J L) U J ] 2 D J_ ) Q ❑ > m 0 M O > o J N l i[) A II I m O) W m 01 CL O _ f N N N � r 0 N N o N d 0 0 Y J m m >> > O N N A II I m O) W m 01 r m m m m N m m � N N N N N N N N N N N 0 0 o m m o 0 0 o m m 0 0 o q o0 99 99 99 99 00 m mm m m mm mm 0 0 0 0 0 0 0 0 0 0 0 M M N N N M N N O M N Ih N CV � o n n r N N W U w w (n w w LL W O Y U m w Y U J O U (n W Y Ow N U_ C ❑ LL IL V M O M O 0 0 0 N N N N N N N r m m m m N m m � b W b IL u c d rn Q m E ` a y o t > v m 7 > 0 O C J C C6 N b 10 n i m _ N 0 0 � O w N L O C> N O O � W CO W M N N ed m M n w w w CO bi w l0 ai cc r6 cc O O o o W J N N M ni N N of 46 � � M O' w r n O O V n E E Q n n v N N J a O p U ❑ w a ❑ z ❑ 0 O w w � z O J 0 0= 0 y 0 0 a 0 0 J a O = N r N a 7 O O. 7) w co m❑ mLLI O ¢ NN O 'm U — Q — ¢ Y LL m N ¢ Z m z ¢ z ¢ m m m M O W m z ¢ N O S r c > m D u a u❑ Y a Y o a o a o 0 0 J3 w w e y 2 12 w U C7 0 a U a z 0a K a o 0 a 01 = 0 M m a n r n LU J M O V U ° z� n ° m, ° , Q a� w ❑� �m h W W J = W U m a o J w N N W N a O �i Q �i K rn m rn U m m m n o N N N M O O O O # O O O Q a o 0 0 a OI (O C6 r N r N n i m _ N O � O w N L O C> N b 0 U u m m � � Z z W J 0 O W n W W Q N J O p U N w a ❑ z O z w z O J ¢ y U a J a O = N r N a 7 O O. 7) w co m❑ mLLI O ¢ NN O 'm U — Q — ¢ Y LL LL O ¢ Z W S z ¢ ¢ m ¢ M O W ' ❑ z ¢ N O S r m D u n u❑ Y o¢ Y Y o a o a o 0 0 J3 0 2 12 a a ;a 0a a o 0 01 r M M OI (O a O i m _ N � O w N L O C> N b 0 U u m m > O OI (O AGENDA STAFF REPORT DATE. February 15, 2011 TO Honorable Mayor and Members of the City Council Honorable Chair and Members of the Agency Board APPROVED BY Roger L. Haley, City Manager /Executive Dire PREPARED BY Sarah Magaha Withers, Director of Redevelop SUBJECT Housing Rehabilitation Program Guidelines - Clarifying Project Eligibility and Revised Maximum Assistance Recommendation: Staff recommends that the City Council adopt the attached resolution entitled: "A JOINT RESOLUTION OF THE CITY COUNCIL AND LYNWOOD REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD APPROVING AMENDMENTS TO THE HOUSING REHABILITATION PROGRAM GUIDELINES" Background: The City of Lynwood has conducted a Housing Rehabilitation Program (HRP) since 1975, providing funding for lower- income (80% of area median income) owner - occupied properties in need of repair The HRP is currently funded from the City's federal Home Investment Partnerships Program (HOME) allocation, with program requirements detailed within the City's current HOME mandated Program Guidelines and Procedures. On February 21, 2006, the City Council had approved an amendment to the program by adoption of Resolution 2006.028, which addressed: 1 Updating the guidelines to meet HUD standards 2. Limited the $10,000 grant amount to correcting code violations and /or abate lead hazards. and /or pest control. 3. Increased the program loan amount from $30,000 to $65,000, subject to: a. One -third of the loan amount being applied to the exterior of residence. b Loans to carry a 0% interest rate ITEM c. Loans payable and due upon sale, transfer, or when refinancing to receive cash out. On December 2, 2008, the City Council approved amendments to the City's Housing Rehabilitation Program by the adoption of Resolution No. 2008 183. The amendments addressed the following: 1 Provided grant eligibility for homeowners who had previously received a loan only 2. Provided loan eligibility for homeowners who had previously received a grant only 3. Provided for a homeowner receiving a loan and grant, to re -apply to the program subject to repayment of the prior loan and the elapsing of a 10 -year period. 4 Implementation of an applicant appeal process On May 6, 2009, the City Council approved an amendment to the City's Housing Rehabilitation Program by the adoption of Resolution 2009 076. The amendment provided for granting the City Manager with authority to grant or deny an appeal to the program, inclusive of funding limits, provided the decision was compliant with federal and state laws governing the use of HOME funds. Discussion & Analysis: The current Program Guidelines and Procedures incorporates both the policy document (guidelines) and the operational aspects (procedures) of the City's Housing Rehabilitation Program. Creating two separate documents, a Program Guidelines document, and an Implementation Procedures document will assist in facilitating the implementation of any required procedural changes to the program. Program Policy as established by the City Council will be contained within the Program Guidelines, and will constitute the framework for the Implementation Procedures. The Implementation Procedures will constitute the day -to -day processing protocols for the program and address the extensive HOME program requirements. By separating these two documents, modifications necessitated by HUD /HOME program changes, or resulting from HOME program reviews, can be amended expeditiously provided that they are consistent with the approved Program Guidelines. Program Modifications The current program limits are established at maximums of $65,000 for loans, and $10,000 for grants, or $75,000 in total program funding. The revised program guidelines are proposing a reduced maximum loan amount of $35,000, retention of the maximum $10,000 grant amount, and integration of the emergency repairs component into the grant amount. Final maximum funding under the proposed changes will be $45,000 The reduction in the maximum 2 loan amount is reflective of typical anticipated repair projects, and will allow for additional clientele to be served. The proposed guidelines also expands the program by incorporating the potential use of Lynwood Redevelopment Agency Low- and Moderate - Income Housing Set -aside funds (LMIHF) in conjunction with federal HOME funding. Although LMIHF is not anticipated to be used the remainder of this fiscal year, the provision of the LMIHF will enhance the program by providing available funding in instances where the proposed rehabilitation activity will not comply with federal HOME requirements. LMIHF will be reviewed and budgeted accordingly for the next annual Budget Approval Process. In addition, the City's Guidelines and Procedures contain deficiencies with respect to a number of unaddressed or incorrect HOME requirements. The following summary table provides a description of the current and proposed changes. Summary of Guidelines Changes Requirement Old Guidelines New Guidelines Authority to Administer Not addressed Listed as the Director of Program Redevelopment, or their designee. Program Funding Amounts Loan: $65,000 maximum, 0% Loan: $35,000 maximum, 0% deferred deferred Grant: $10,000 Grant: $10,000 Total Loan and Grant: $75,000 Total Loan and Grant: $45,000 Funding source HOME funds HOME funds and RDA LMIHF Method of Calculating All three allowable methods The IRS 1040 method has Household Income in are listed, however no method been designated for use conformance with HOME is designated for use under the under the program. requirements. One method program. must be selected from three (3) available options and designated for use in assessing all program applicants. Clarification of soft costs Not addressed Clarifies that project soft costs coverage (ex. title, credit are to be absorbed by HOME reports, recordation fees, administration cost, and are environmental testing, etc.) not included within the loan or rant amount. Eligible Property definition One -to -four unit residential Limited to detached single property, with owner residing family residential. in one of the units. This is not an eligible definition under the HOME program, since 51% of the units repaired would require occupancy by low income households. Loan /Grant Approval Specified as a "Program Staff' Creates a Project Review Process function. Committee, which approves all applicants for funding based on a review of work scope, and total projected costs for the proj ect. Loan Security Coverage Not addressed 90% loan to value Emergency Assistance Provides for emergency Integrated into the $10,000 assistance with unspecified Grant Program, with special funding levels, and an allowances to be provided eligibility documentation within the Implementation procedure which is Procedures that will allow for unacceptable under HOME addressing the emergency requirements. prior to completion of any other required repairs. Upon completion of the emergency repair(s), the applicant will then revert back to their original position at intake. Conflict of Interest Not addressed Excludes from participation: Provisions City Council Members, all Community Development Department employees and any employee, official or agent of the City who exercises any policy or program decision- making function in connection with the Program. Contractor Conditions- Requires licensing in Requires verification of Licensing compliance with state codes. licensing with California State Contractors License Board. Contractor Conditions- Requires verification with GSA Requires verification with the Debarment and HUD. The debarred Department of Labor website. database is not maintained by GSA and HUD, but rather the Department of Labor. Contractor Conditions- Requires possession of an Requires possession of Insurance unspecified amount of $1,000,000 aggregate manufacturers' and contractor general liability, with City as liability insurance. an added insured. Contractor — Bid Award Not specified Award to lowest responsive bidder, in conformance with HOME requirements. Required Loan Documents Referenced in various sections Listed: as to the deed of trust, 1 Promissory Note; promissory note, and truth in 2. Deed of Trust; lending disclosure statement. 3. Good Faith Estimate of Settlement Charges; 4. Itemization of Amount Financed; 5. Right of Rescission; and 6. Request for Notice under Section 2924b of the Civil Code (i.e. Notice to City if senior loans foreclose or upon sale). El Post - rehab. Value - Section Not addressed To be contained in ( 203)(b) compliance Implementation Procedures HOME Per unit subsidy Not addressed To be contained in limits Im lementation Procedures The above listed changes will assist in: providing a program which will be HOME compliant, expand client participation, and provide greater clarity to the framework under which the program conducted. Fiscal Impact: There are no fiscal impacts to the City's General Fund, HOME funds or Redevelopment Agency Low- and Moderate Income Housing Set -aside funds. Coordinated With: City Attorney's Office City Manager's Office Finance Department Attachments. Resolution Draft Housing Rehabilitation Program Guidelines RESOLUTION NO. A JOINT RESOLUTION OF THE CITY COUNCIL AND LYNWOOD REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD APPROVING AMENDMENTS TO THE HOUSING REHABILITATION PROGRAM GUIDELINES WHEREAS, the City of Lynwood is a participating jurisdiction of the Home Investment Partnerships Program (HOME Program) and receives an allocation of federal funding to provide affordable housing for -low income households; and WHEREAS, the Lynwood City Council has adopted a Housing Rehabilitation Program to address the housing needs and enhance the overall housing conditions and increase affordable housing opportunities to principally benefit low income households; and WHEREAS, the Redevelopment Agency Low -and Moderate Income Housing Set -aside funds can be used in conjunction with HOME funds as an added program source for the adopted Housing Rehabilitation Program; and WHEREAS, the HOME funded housing programs are administered by the City of Lynwood in compliance with the federal regulations established by the Department of Housing and Urban Development (HUD); and WHEREAS, the federal regulation provide opportunities for the City of Lynwood to establish programs and develop program guidelines according to the local housing needs. NOW THEREFORE, THE CITY COUNCIL DOES HEREBY RESOLVE AS FOLLOWS Section 1. That the City of Lynwood's Housing Rehabilitation Guidelines are hereby amended to read as follows: A. Grants & Loans — Terms, Conditions and Restrictions 1 The maximum program loan amount is $35,000 2. The maximum program grant amount is $10,000 3. The maximum total funding under the program is $45,000 4 Eligible emergency repairs shall be addressed with available grant funding to approved applicants. 5 Subject to Lynwood Redevelopment Agency approval, the use of Low and Moderate Income Housing Set -aside funds is an added source of program funds. B. Program Administration 1 The authority to administer the Housing Rehabilitation Program shall be vested with the Director of Redevelopment or their designee. C Property Eligibility 1 Program assistance shall be limited to eligible detached single family residential property located within the corporate city limits. 2. All funded programs loans and grants shall comply with the maximum post - rehabilitation value and maximum per unit subsidy limits as established by HUD 3. The combination of all secured indebtedness (including the Program loan) may not exceed 90% of the assisted property's estimated post rehabilitation value, as determined by appraisal. D Loan and Grant Approval 1 All program loans and grants shall be approved by the Project Review Committee (LRC), which consists of the Director of Redevelopment and /or appointed designee. E. Eligible Program Costs 1 All eligible program soft costs shall be charged to the City, and not to the applicant's program grant or loan. F Conflict of Interest 1 All City Council Members, all Community Development Department employees and any employee, official or agent of the City who exercises any policy or program decision - making function in connection with the Program are ineligible for assistance under the Program. This policy will be in effect until the individual's disassociation with the City of Lynwood in such a capacity G. Contractor Conditions 1 Prior to contract award, contractor eligibility shall be determined by a. Checking the contractor's license status with the Contractors State License Board (www.cslb ca.gov); b Checking the contractor's Federal debarment status with the Excluded Parties Listing System (www epls.gov); 2 c. Obtaining a copy of the contractor's current City of Lynwood Business License; and d. Obtaining additionally insured General Liability ($1 million general aggregate coverage) and Workers Compensation (statutory coverage) insurance certificates. H. Loan Security and Documentation The City shall not be committed to fund any loan- funded project prior to the City's execution of a Participation Agreement and recordation of the program Deed of Trust. Similarly, the City shall not be committed to fund any grant- funded project prior to the City's execution of the Participation Agreement. 2. In connection with any funded program loan, the City shall obtain the following signed loan documents: a. Promissory Note; b Deed of Trust; c. Good Faith Estimate of Settlement Charges; d. Itemization of Amount Financed; e. Right of Rescission; and Request for Notice under Section 2924b of the Civil Code (i.e. Notice to City if senior loans foreclose or upon sale) Section 2. That the Director of Redevelopment or designee is authorized to prepare Implementation Procedures which will effectuate the policies established within the Program Guidelines, and control the implementation of the Housing Rehabilitation Program. Section 3. That the City Manager or designee is authorized to prepare and execute such documents related to amendment of the guidelines. Section 4. This resolution takes effect immediately upon its adoption. PASSED, APPROVED, and ADOPTED this 15 day of February 2011 Aide Castro, Mayor /Chair ATTEST: Maria Quinonez, City Clerk/Secretary APPROVED AS TO FORM: Roger L. Haley, City Manager /Executive Director APPROVED AS TO CONTENT: Fred Galante, Sarah Magana Withers, City Attorney /Agency Counsel Director of Redevelopment CITY OF LYNWOOD HOUSING REHABILITATION PROGRAM PROGRAM GUIDELINES I. PROGRAM DESCRIPTION The purpose of the City of Lynwood Housing Rehabilitation Program (HRP) is to assist low- and moderate - income owners of single - family detached dwellings with the preservation of decent safe and sanitary housing. The HRP corrects hazardous structural conditions, makes improvements considered necessary to eliminate blight, promotes the construction of healthy, sustainable and resource - efficient housing, improves disabled access, and corrects building, health and safety code violations. Program funds may be used to complete housing rehabilitation projects only, inclusive of project - related soft costs such as hazardous materials testing fees, document recordation fees, escrow fees and project - related hard costs such as construction contracts. II. SOURCE OF FUNDS HRP projects may be funded from the City's annual allocation of HOME Investment Partnerships Act (HOME) funds. As necessary, the City may use the Lynwood Redevelopment Agency (Agency) Low- and Moderate - Income Housing Set -aside Fund (LMIHF). The City of Lynwood receives HOME funds from the U.S. Department of Housing and Urban Development (HUD) because it is a HOME Participating Jurisdiction. LMIHF monies are used by the Agency for the purposes of increasing, improving, and preserving the community's supply of low- and moderate - income housing available at affordable housing cost. Funds for the HRP are approved by the City Council each fiscal year as part of the City's Annual HUD Action Plan process and during the annual budgeting of redevelopment funds. III. PROGRAM LOANS To fulfill the HRP's purpose, zero - interest (0 %) deferred loans will be made available to eligible households whose incomes do not exceed the 80% of Area Median Income adjusted for household size as promulgated by HUD Program loans may not be less than $5,000 and may not exceed $35,000. When combined with the grant, an applicant will be eligible for up to $45,000. Program funds may not be used for refinancing purposes. The rates and terms applicable to Program loans are described further in Section V -F of these Program Guidelines. There is a limit of one (1) Program loan per eligible owner Program loans shall be underwritten by program staff and approved by the Project Review Committee (LRC), which consists of the Director of Redevelopment and /or appointed designee. For real property, program loans will be evidenced by a promissory note and secured by a deed of trust. Program loans may not be in a junior position beyond a third trust deed. The combination of all secured indebtedness (including the Program loan) may not exceed 90% of the assisted property's estimated post rehabilitation value, as determined by appraisal. All loan funding is limited and subject to the availability of program funds. IV. PROGRAM GRANTS Program Grants are available to assist eligible households meeting the 80% of AM[ criteria. The maximum one -time grant amount is $10,000 and program applications for subsequent grants will not be accepted. Applicants may use up to $5,000 of the grant funds to address emergency repairs. The remaining grant funds will be available to the applicant at such time that the applicant is processed under the regular process. Emergencies are conditions that require housing rehabilitation work necessary to remediate hazardous code - related issues. To be eligible for an Housing Rehabilitation Program 1 Program Guidelines January 2010 Residential Rehabilitation Program emergency grant, the required repair must pose an immediate threat to the structural integrity of the residence or the health and /or safety of the property's occupants. All grant funding is limited and subject to the availability of program funds. V ELIGIBILITY CRITERIA A. Eligible Applicants Eligible applicants are owners of single - family detached residential properties located within the Lynwood corporate city limits. Eligible applicant properties must be owner - occupied dwelling units. Program loans may only be made to owner - occupants with acceptable credit history and clear title to an eligible property in need of rehabilitation. As a prerequisite to eligibility, an applicant must be willing to correct all current code violations. City Council Members, all Community Development Department employees and any employee, official or agent of the City who exercises any policy or program decision - making function in connection with the Program are ineligible for assistance under the Program. This policy will be in effect until the individual's disassociation with the City of Lynwood in such a capacity B. Eligible Household Income Owner - occupant household income may not exceed 80% of the Los Angeles County Area Median Income adjusted for household size as promulgated by the U.S. Department of Housing and Urban Development. It is important to note that this figure is labeled differently under the HOME and Agency programs. For HOME, this limit is considered "Low - Income," whereas under LMIHF application it is considered "Lower Income." For HOME derived funds, the determination of annual household income shall be made in accordance with the HUD Technical Guide for Determining Income and Allowances for the HOME Program, Third Edition. The City has elected to use the "IRS Form 1040 Adjusted Gross Income Method" as detailed in the Technical Guide. Where HOME funds are being utilized, the determination of income eligibility shall be made based on Title 24 Code of Federal Regulations —in conformance with the Technical Guide for Determining Income Allowances for the HOME program (See Attachment A). In accordance with U.S. Department of Housing and Urban Development (HUD) regulations, an applicant's annual household gross income may not exceed 80% of the area median income adjusted for household size, based on the income limits promulgated annually by HUD (See Attachment B). For LMIHF activities, income will be calculated in accordance with the requirements of the requirements of Title 25 of the California Code of Regulations, Division 1, Chapter 6.5, Subchapter 2, Section 6914 (See Attachment C). C. Eligible Improvements Program loans and grants may be expended for structural repairs, roofs, insulation, rodent and pest extermination, cabinets, counters, plumbing, electrical work, windows /window frames, door /door frames, flooring, painting (interior and exterior), heating and cooling, or access improvements for the disabled. Site work involving the foundation, drainage improvements or any health and safety concerns or code violations may also be eligible. Current code violations shall take precedence over all other repairs, Housing Rehabilitation Program 2 Program Guidelines January 2010 Residential Rehabilitation Program including general property improvements. Construction of room additions or the initial construction or repair of luxury items (i.e., bar -b -ques, saunas, hot tubs, patio covers, etc.) is not eligible. Construction materials used for this Program shall conform to the specifications designed by Staff under its Rehabilitation Standards. The Participant shall not be allowed to upgrade approved work scope items beyond designated standard grade materials. D Eligible Costs Program loan and grant proceeds will be used to cover the rehabilitation costs. All other costs such as Program fees, such as, but not limited to the title report, credit report costs, document recordation costs, escrow costs, hazardous materials testing costs, and other project - related soft costs that are necessary to implement the project shall be borne by the City E. Relocation Relocation is not contemplated as a part of this rehabilitation activity, however if an unanticipated event occurs which requires temporary relocation, such relocation shall be performed in compliance with the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 and Section 104(d) and may be paid for using program funds. F Rates and Terms Deferred loans will not accrue interest and do not require monthly payments. They are immediately payable inclusive of the unpaid principal balance, and any other amounts due under this Note upon the earlier of. 1 The sale, conveyance, transfer, lease, rental, hypothecation of the Security, or any part thereof, or any interest therein, or divestment of title or any interest therein in any manner or way, whether voluntarily or involuntarily, without the prior written consent of the City being first had and obtained; or 2. Failure to adhere to the provisions of the Participation Agreement; or 3. Failure to perform any obligation under the Deed of Trust securing this Note, or any other Deed of Trust encumbering the Security Participant may pre -pay the City Loan at any time without penalty All payments received on account of the Note shall be first applied to accrued interest, if any, and the remainder shall be applied to the reduction of the principal balance. The City Loan is not assumable except under the limited circumstances listed below The following allowable assumptions shall not be construed as a transfer under the provisions of this Policy 1 The transfer of the Property to the surviving joint tenant by devise, descent or operation of the law, on the death of a joint tenant; 2. A transfer of the Property where the spouse becomes an owner of the property; 3. A transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from an incidental property settlement agreement by which the spouse becomes an owner of the Property; Housing Rehabilitation Program 3 Program Guidelines January 2010 Residential Rehabilitation Program 4. A transfer to an intervivos trust in which the Borrower is and remains the beneficiary and occupant of the property VI. IMPLEMENTATION A. Administration The Lynwood Redevelopment Department Staff or their designees ( "Staff') shall administer the Program. As used herein, the term "Staff' may include either employees or consultants of the Department under the direction of the Director of Redevelopment. The administration of the Program including, without limitation, application evaluation procedures, rehabilitation assessments, cost estimation, bid solicitation, contractor selection, construction management, inspection, disbursement of Program funds and processing of the Notice of Completion will be managed in accordance with this Policy The Director of Redevelopment shall be responsible to ensure that HRP Implementation Guidelines are maintained and updated periodically to ensure compliance with all U.S. Department of Housing and Urban Development policies and regulations. The Implementation Guidelines shall conform to this approved Policy B. Application Applications for participation in the Program may be obtained from and returned to the City of Lynwood Redevelopment Department. Applications will be accepted on a first - come first- served basis from eligible applicants consistent with funding availability The application must be completed in its entirety and submitted together with the following documentation: 1 Application Form; 2. Copy of applicant(s) valid government- issued photo identification; 3. Verification of all Household Income, which must include, but is not limited to the Applicant's most recent signed Federal Income Tax Return, three (3) most recent pay stubs, three (3) most recent bank statements, and statements or other acceptable documentation of all other income sources and asset accounts; 4. Proof of ownership of the eligible property such as a copy of the Deed of Trust, or Grant Deed; 5. Proof of occupancy at the residence by providing a copy of a utility bill (however not a water or trash bill); 6. A prioritized and itemized list of the construction work requested to be done; 7 Acknowledgement form for Receipt of lead based paint brochure; 8. Copy of the latest property tax bill; and 9. Copy of the homeowner's insurance policy Only when the program application is complete, Staff has confirmed income eligibility and the owner- occupant status, shall the Applicant be placed on a list of eligible projects in order Therefore, those applicants who submit all requested documents with the Application in the shortest time frame will have the highest priority for assistance under the Program. For the purpose of determining actual funding, completion of all program requirements must be achieved, inclusive of the timely procurement of bids, and execution of all related program documentation. Housing Rehabilitation Program 4 Program Guidelines January 2010 Residential Rehabilitation Program Application approval is subject to funding availability Staffs eligibility determination is not a commitment of funds. Funds shall only be committed upon the approval by the LRC, full execution of the Participation Agreement, signing of the promissory note, and the recordation of the Deed of Trust. D Pre - qualification. Evaluation and LRC Review Pre - qualification and Property Evaluation — Each application filed will be dated and processed in the order received. Staff will review applications for completeness and verify property eligibility Incomplete applications will be returned to the applicant. Staff shall notify all ineligible applicants of their status by written correspondence. Prior to consideration by the LRC, Staff shall schedule an appointment with each pre - qualified applicant at the subject property to review the work requested and to inspect the premises. Based on this on -site review, Staff shall prepare a Current Conditions Assessment Report that will establish the type and level of rehabilitation required. Subsequent to the inspection, a complete work description shall be prepared with an internal cost estimate. For HOME - funded projects, an estimated post- construction valuation must be obtained through a process acceptable to HUD such as appraisal. 2. Maximum Post — Rehabilitation Value: As a condition of HOME funding, the maximum estimated post - rehabilitation value of the property may not exceed 95% of the median sales price as determined in accordance with 24 CFR 92.254(a)(2)(iii). Program staff shall utilize the HUD - sanctioned methodology to determine the maximum value that yields the highest maximum post - rehabilitation value at the beginning of each program year 3. Maximum Per -Unit Subsidy Limits As a condition of HOME funding, the maximum per -unit subsidy to affordable housing may not exceed the limits determined and promulgated by HUD in accordance with 24 CFR 92.250. The maximum program loan and grant limits has been designed to minimize per -unit subsidy considerations. 4. LRC Review — The LRC shall consist of the Director of Redevelopment and the Deputy Director of Redevelopment. The LRC will consider complete application packages for approval based on the Program underwriter's recommendations. In order to proceed, all LRC members must approve all Program loans. 5. Owner Approval and Work Scope Changes — The owner shall review and provide an approval signature on the Work Description and Bid Proposal Form prior to the preparation of bid packages by the City D. Bidding and Contractor Selection Procedures The applicant shall solicit bids (in accordance with Implementation Guidelines) from contractors for completion of the rehabilitation work. Owners shall solicit bids from general B- Licensed contractors for Work Descriptions involving more than one specialty Bid solicitations can be made of licensed specialty contractors if the Work Description involves a single specialty (i.e. roofing, electrical, plumbing, etc.). Once the owner has received three (3) or more bids from qualified contractors, the owner shall submit three (3) or more bids to the City for review The bid evaluation shall result in the contract award to the lowest responsible, responsive bidder Prior to contract award, Staff will confirm contractor eligibility by 1 Checking the contractor's license status with the Contractors State License Board ( www.cslb.ca.gov) ; Housing Rehabilitation Program 5 Program Guidelines January 2010 Residential Rehabilitation Program 2. Checking the contractor's Federal debarment status with the Excluded Parties Listing System (MMW.*2I M); 3. Obtaining a copy of the contractor's current City of Lynwood Business License; and 4 Obtaining additionally insured General Liability ($1 million general aggregate coverage) and Workers Compensation (statutory coverage) insurance certificates. E. Loan Documents When bid proposals are complete, loan approval has been obtained from the LRC and the bid is ready to be awarded to the lowest responsive and responsible bidder, Staff shall present the applicant with a Participation Agreement and loan documents, which includes the: 1 Promissory Note; 2. Deed of Trust; 3. Good Faith Estimate of Settlement Charges; 4. Itemization of Amount Financed; 5. Right of Rescission; and 6. Request for Notice under Section 2924b of the Civil Code (i.e. Notice to City if senior loans foreclose or upon sale). The City shall not be committed to fund any loan- funded project prior to the City's execution of the Participation Agreement and recordation of the program Deed of Trust. Similarly, the City shall not be committed to fund any grant- funded project prior to the City's execution of the Participation Agreement only Staff shall provide fully executed duplicates of the originals of the Agreement and any loan documents to the Applicant. Pre - Construction Meeting. Contractor Agreement. Notice to Proceed and Construction Phase Following the recordation of loan documents, Staff will convene a pre- construction meeting with the owner and selected contractor to review the Contractor Agreement, Work Description and Bid Proposal Form, and to answer site - specific questions. Three (3) calendar days following the execution of the Contractor Agreement, Staff will issue the Notice to Proceed. Subsequent to obtaining the required permits, the contractor will carry out the required work. Generally, work shall commence no later than ten (10) days from the date of the Proceed Notice and work must be completed no more than 30 -60 days after the start date (or as agreed upon by the owner and contractor). Property owners and Staff shall authorize the release of program funds in accordance with the Participation Agreement between the property owner(s) and the City, as well as the Contract Agreement between the property owner(s) and the construction contractor as further detailed in the Implementation Guidelines. G. Proiect Closeout Individual rehabilitation projects will be financially closed subsequent to Staff approval of the work performed and the property owner's execution of a Notice of Completion. To prevent persons or businesses associated with the project from filing a lien against the property after the City has released all project funds, the City shall withhold ten percent (10 %) of the construction contract from the prime contractor until such liens may no longer be filed, which, in accordance with California Civil Code Section 3116 is 30 Housing Rehabilitation Program 6 Program Guidelines January 2010 Residential Rehabilitation Program calendar days following the recordation of the Notice of Completion with the County Recorder's Office. To allow for the receipt of mailed notification of any recorded liens, the City shall withhold the ten percent (10 %) retention until 35 calendar days following the recordation of the Notice of Completion. H. Approval of Program Legal Documents All Program legal documents shall be approved as to form by the City's legal counsel prior to their use. Authority to Administer The preparation and use of all required Program Implementation Guidelines, manuals, forms, documents and agreements shall be administered by the Director of Redevelopment, or his /her designee, in accordance with this Policy The Director of Redevelopment has the authority to waive eligibility requirements and loan limits at his /her discretion to address critical home improvement needs, provided that the requirement is not statutory The Director of Redevelopment may also approve the subordination of the City's Program loan lien in the event that a borrower refinances a prior- recorded loan to improve their mortgage terms. J. Program Guidelines Changes And Modifications Minor changes to these Program Guidelines involving administrative procedures or accommodations to adapt to regulatory changes may be performed with the approval of the Director of Redevelopment. All other changes require the approval of the Lynwood City Council. Housing Rehabilitation Program 7 Program Guidelines January 2010