HomeMy WebLinkAboutResolution No. 188Ll
RESOLUTION NO.188
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A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA FINDING THAT A SUBSTANTIAL
EFFORT IS BEING MADE TO MEET THE NEED FOR
LOW AND MODERATE INCOME HOUSING
WHEREAS, the Redevelopment Agency of the City of Azusa
("Agency") adopted the Central Business District Redevelopment
Plan in 1978; and the West End Redevelopment Plan in 1983
subsequent to the enactment by the Legislature of the provisions
of Section 33334.2 of the Health and Safety Code; and
WHEREAS, the Tax Increment revenues which are derived to the
Agency from said project areas are subject to the provisions of
California Health and Safety Code Section 33334.2 for low and
moderate income housing purposes; and
WHEREAS, the Agency has received and considered a staff
report entitled, "Efforts to Meet Low and Moderate Income Housing
Needs of the City of Azusa which is attached hereto as Exhibit
"A" and incorporated herein by this reference, that demonstrates
that a substantial effort is currently being made by the City and
the Agency to meet the need for low and moderate housing in the
City of Azusa and that such effort is intended to continue for
the foreseeable future; and
WHEREAS, assisted with the Federal Community Development
Block Grant program, the City has since 1977 disbursed more than
$1,192,660 through various housing projects for the
rehabilitation and construction of low and moderate income
housing. That such expenditures have resulted in more than 116
homes being rehabilitated and 342 new units being constructed, a
number in excess of the number of low and moderate income
households displaced or anticipated to be displaced or
anticipated to be displaced from the project area; and
WHEREAS, the Agency has considered the need that can be
reasonably foreseen because of displacement of persons and
families of low, moderate, or very low income households from
within or adjacent to the project areas, because of increased
employment opportunities, or because of any other foreseeable
direct or indirect result of implementation of the redevelopment
plans.
NOW, THEREFORE, the Redevelopment Agency of the City of
Azusa does hereby resolve as follows:
Section 1. The Redevelopment Agency of the City of Azusa
finds, determines and declares that:
A. That the Redevelopment Agency of the City of Azusa and
the City of Azusa are making substantial efforts to meet low and
moderate income housing needs in the community, and that this
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effort, including the obligation of funds currently available for
the benefit of the community from state, local, and federal
sources for low and moderate income housing alone is substantial-
ly greater in impact to the funds otherwise required to be set
aside pursuant to California Health and Safety Code Section
33334.2.
B. That there are no present plans or plans for the fore-
seeable future to displace any families of very low, low, or
moderate income from within or adjacent to the project area
because of any cause whatsoever.
C. That due to the large pool of already -housed unem-
ployed and underemployed workers in the area, the increased
housing needs that can reasonably be foreseen for low and moder-
rate income households because of additional employment opportu-
nities resulting from implementation of the Redevelopment Plans
will be minimal and can be satisfied by already existing Agency
and City.programs.
Section 2. That the Agency, in accordance with the Redeve-
lopment Plan and the Community Redevelopment Law will cause an
equal number of low and moderate income housing units to be
constructed or rehabilitated as will be removed from the Project
Area as a result of project implementation.
Section 3. That nothing herein shall be deemed to preclude
the Agency from using taxes set aside pursuant to the Community
Redevelopment Law, or otherwise, for meeting the low and moderate
income housing needs of the City of Azusa.
Section 4. The Secretary shall certify to the adoption of
this Resolution.
APPROVED AND ADOPTED this 1st Day of April, 1985.
CHASIMAN
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Redevelopment Agency of the City of Azusa at a
regular meeting thereof held on the 1st day of April, 1985, by
the following vote of the Agency:
AYES: DIRECTORS: CRUZ, COOK, CAMARENA, LATTA, MOSES
NOES: DIRECTORS: NONE
ANT: DIREC76R NONE
DEPUTY SECRETARY
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EFFORTS TO MEET
LOW -AND MODERATE -INCOME
HOUSING NEEDS OF THE
CITY OF AZUSA
by: Azusa Redevelopment Agency
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I. Legal Requirements of the Agency
On January 1, 1977 the Legislature amended the provisions of the
California Health and Safety Code adding a requirement that, "Not
less than 20 percent of all taxes which are allocated to the
Agency pursuant to Section 33670 of the Health and Safety Code"
shall be used by the Agency for the purposes of increasing and
improving the community's supply of low -and moderate -income
housing available at affordable housing cost unless one of the
following findings is made:
(1) That no need exists in the community to improve or
increase the supply of low -and moderate -income housing
in a manner which would benefit the project area.
(2) That some stated percentage less than 20 percent of the
taxes which are allocated to the Agency pursuant to
Section 33670 is sufficient to meet the housing need.
(3) That a substantial effort to meet low -and moderate -
income housing needs in the community is being made,
and that this effort, including the obligation of funds
currently available for the benefit of the community
from state, local, and federal sources for low -and
moderate -income housing alone or in combination with
the taxes allocated under this section, is equivalent
in impact to the funds otherwise required to be set
aside pursuant to this section. The legislative body
shall consider the need that can be reasonably foreseen
because of displacement of persons and families of low
or moderate income or very low income households from
within or adjacent, to the project area, because of
increased employment opportunities, or because of any
other direct or indirect result of implementation of
the redevelopment plan.
The complete text of Section 33334.2 of the Health and Safety
Code and related Code Sections are attached hereto and labled
appendix A to this report. The purpose of this report is to
identify:
1. The existing and projected levels of low -and moderate -
income housing need for the City of Azusa;
2. The existing projected levels of effort expended by the
City of Azusa and the Azusa Redevelopment Agency; and
3. A finding and determination whether the Azusa
Redevelopment Agency should continue to set aside a 20%
or lesser share of the taxes which are allocated to the
Agency pursuant to 33670.
II. Background
The Redevelopment Agency of the City of Azusa was activated in
1974 upon the adoption of City Ordinance No. 1055. The Azusa
Central Business District Redevelopment Project Area was then
established in 1978 upon the adoption of City Ordinance.
On November 28, 1983, the Agency established the West End Redeve-
lopment Project which became activated upon the adoption of City
Ordinance No. 2196. The Redevelopment Project Areas referred to
above are all identified on the Project Area Map attached hereto
in Appendix B to this report.
III. City of Azusa Low -and Moderate Housing Need
The City of Azusa supports and endorses the State housing goal
". of a decent home and a satisfying environment for every
Californian...". In addition, the City supports and endorses the
five goals incorporated in present State law pertaining to the
manner in which the actions of the City of Azusa must be directed
so that there is adequate provision for the housing needs of all
economic segments. These are summarized below (City of Azusa
Housing Element):
Conserve and improve the condition of the existing
affordable housing stock.
Assist in the development of adequate housing to meet
the needs of low -and moderate -income households.
Identify adequate housing sites which will be made
available through appropriate zoning and development
standards and with public services and facilities
needed to facilitate and encourage the development of
a variety of types of housing for all income groups.
Address and, where appropriate and legally possible,
remove governmental constraints to the maintenance,
improvement, and development of housing.
Promote housing opportunities for all persons
regardless of race, religion, sex, marital status,
ancestry, national origin or color.
The City of Azusa Housing Element establishes the local goals
and quantified objectives which are designed to meet a projected
5 -year housing need which is based upon projected growth; main-
tainenance of a reasonable vacancy rate and replacement housing
for units which are demolished or lost due to development or
fires. It is projected that between the years 1984 and 1989 the
City would have to accommodate up to 238 new low -and moderate -
income housing units. It is further determined that new housing
should accommodate the low -and moderate income housing groups as
follows: 3
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Income Group Number
Very Low 72 units
Low 88 units
Moderate 78 units
Furthermore, the City of Azusa is committed to the maintenance of
its housing stock. This is demonstrated by an active program to
assist in the rehabilitation of housing units for the low -and
moderate -income housing groups. The City's goal for
rehabilitation is to assist in the rehabilitation of 100 units
during the five-year period between 1984 and 1989.
Additional housing objectives relative to the low -and moderate -
income housing need are as follows:
To meet the rental housing assistance needs in existing
housing units of 150 lower-income households during the
next five years.
To meet the owner housing assistance needs of first
time buyers of moderate -income in 100 newly constructed
housing units.
To achieve the production of 80 new rental housing
units within the financial means of low -and moderate -
income households.
The City of Azusa's active involvement in the housing assistance
program dates back to 1977 when it initiated a housing rehabili-
tation loan program under the Community Development Block Grant
Program. Between 1977 and 1984 the City expended and leveraged
loans to upwards of $1,192.660 to assist 165 homes in rehabilita-
tion efforts alone. However, for the purposes of this report the
period which is to be reported will be 1984 to 1989 which coin-
cides with the five-year housing plan adopted by the City of
Azusa in its Housing Element.
Following is a summary of housing rehabilitation programs for the
fiscal years 1983-84, 1984-85, 85-86 (projected) which illustrate
the City of Azusa's committment to the rehabilitation of low and
moderate income housing units:
A. CDBG Low Interest Loan Program
This program, started in 1977, provides 10 year, $5,000 maximum,
4% minor home improvement loans to low income households (up to
$21,900 annual income per year for a family of four). The
4
P
program is funded from CDBG funds
monies and subsequently submitting
Angeles for reimbursement. Program
has been deposited into the General
eventually either be returned to
additional loans.
Number of Loans
___
with the City advancing the
a claim to the County of Los
income (i.e. loan repayments)
Fund, however, the funds must
the County or reused to make
CDBG Low Interest Loan Program
(Projected) (Projected)
1983-84 1984-85 1985-86
Total Loan Value 18,000
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Average Loan Value 4,500 0
B. CDBG Below Market Interest Rate Program (BMIR)
M
Begun in 1979, this program provides 20 year, $27,000 maximum, 6%
interest rate, major rehabilitation loans to low income house-
holds (same income eligibility as A above). The program is
funded with CDBG funds under an interest subsidy agreement with
Crocker Bank. The City of Azusa deposited $75,000 with Crocker
in 1979 under a lump -sum drawdown provision of the CDBG Program.
The $75,000 deposit secured a committment from Crocker Bank to
originate up to $375,000 of low interest loans. Crocker Bank
receives 0.35% of the monthly aggregate outstanding principal
balance as compensation for its participation in the loans. The
Program was temporarily interrupted in 1984 for a reevaluation of
need and was reinstituted in 1984-85. The current program pro-
vides a maximum $20,000 loan (6$ interest) to homeowners and
$10,000 maximum loan per unit, aggregate maximum $40,000 per
owner (8$ interest) for rental housing property owners.
CDBG Low Interest Loan Program
(Projected) (Projected)
1983-84 1984-85 1985-86
Number of Loans
4
33
8
Total Loan Value
78,400
600,000
150,000
Average Loan Value 19,600 18,000 18,000
C. Community Redevelopment Agency Rehabilitation Loan Program
Begun in 1980, this program provides 20 year, $27,000 maximum, 6%
interest rate rehabilitation loans to low and moderate income
households (up to $26,280 annual income for a family of four).
The program was established as a direct loan from the
Redevelopment Agency to the borrower with the Agency servicing
the loans. All loan repayments are deposited to the fund for the
purpose of making new loans. The entire loan pool was fully
committed by 1982-83 and as a result, no new loans were issued
in 1983-84. However, repayments on principal has been recycled
into the loan pool at which point in 1984-85, the Agency can
infuse $40,000 into the programs which will be used in a rental
rehabilitation rebate program. This program will provide rebates
of 35% of the cost of rehabilitation (maximum $7000 rebate) per
homeowner; and 30% reimbursement of the cost of rehabilitation
work ($3000 maximum rebate per unit, $12,000 aggregate per owner)
for rental occupied housing units. In 1984-85 and 1985-86 this
program is projected to serve:
Number of Owner occupied Units - 7
Total Rehabilitation Value - $57,000
Number of Renter Occupied Units - 7
Total Rehabilitation Value - $67,000
D. Rental Rehabilitation Grant Program
The City of Azusa was awarded a $40,000 HUD grant through the Los
Angeles County Community Development Commission. The funds will
be administered exclusively for rental rehabilitation on a 50%
matching basis with rental property owners (maximum $20,000
cumulative grant to any individual owner). It is anticipated
that this program will assist in the rehabilitation of 8
apartment units in fiscal years 1984-85 and 1985-86.
E. Handyman Improvement Program
The City of Azusa contracts with the East San Gabriel Valley
Consortium which is a non-profit organization providing fix -up
and cleanup housing services to low and very low income
households. The program has been funded by the City of Azusa
with CDBG funds. Program activities are summarized as follows:
1983-84
Number of Units
Assisted 21
(Projected)
1984-85 1985-86
22 17
F. Summary of Rehabilitation Efforts
Following is a summary of rehabilitation efforts of the City of
Azusa:
i
Program
CDBG Low Interest Loans
•
Units Units
assisted assisted Total
Funding 1983- 1985- Units
Source 85 86
CDBG 4 0 4
CDBG Below Market Interest Loans
CRA Rehabilitation Loans
CDBG 37 8 45
CRA 0 7 7
Rental Rehabilitation Grant HUD/CDBG 43 17 60
Total 84 32 116
Several supporting documents which further describe the City of
Azusa's housing rehabilitation efforts are contained in the
appendix to this report. It is projected that even though the
City's efforts for rehabilitation between 1984-86 (projected)
will exceed the City's 5 -year goal of assisting 100 units between
1984 and 1989, that further efforts will continue to be made to
maintain an active housing rehabilitation program.
NEW CONSTRUCTION
The City of Azusa and the Azusa Redevelopment Agency have been
instrumental in providing permit approval and mortgage revenue
bond financing to assist in the construction of new housing
units. An affordable housing unit is one which can be afforded
to be purchased or rented by a household with incomes considered
to be in the low income range. The household incomes and
respective prices range for housing follows (to buy a house the
annual income multiplied by 3.5; to rent a unit the monthly
rental rate"should not exceed 25% of the monthly income):
New housing units under construction and to be offered on the
market at affordable prices are summarized in the following
table:
VA
Monthly
Household
Annual
Purchase Price
Rental Price
Size
Income
of Affordable Home
of Affordable unit
2 persons
$18,450
$64,575
$385
4 persons
$23,050
$80,675
$480
6 persons
$25,950
$90,825
$540
New housing units under construction and to be offered on the
market at affordable prices are summarized in the following
table:
VA
Table 2
Availability of New and Projected Housing Units
1984-1989
(Projected) No. of
Year Low -Moderate Price
Development Completed Units Range
Owner
or
Rental
Crystal Canyon 12/86 142 $65,000 Owner
(total of to
365 -units) $80,000
Colony Park 1984 136 $68,000 Owner
to
$84,000
Pacific Glen Apartment 10/85 64 est. Rental
(total of $385 to
320 -units) $540
The projects identified above are all approved projects currently
on the market or under construction. These projects above
increase the City's overall housing stock with the addition of
565 dwelling units of which 342 are within the low and moderate
household income range. The remaining units offer opportunities
for move -up housing for existing residents. This may in turn
free up additional housing opportunities for lower and moderate
income households who currently rent and are seeking
opportunities for home purchase.
In addition, the City of Azusa is pursuing several additional
housing projects which are now only in the negotiations phase.
They include an approved HODAG (HUD -Housing Development Action
Grant) sponsored by the Los Angeles County Community Development
Commission to construct approximately 120 -units including 20%
low- and moderate -income housing; and the development of
approximately 120 -rental units in a project located within the
Azusa Central Business District. City and Agency efforts
continue to be directed to the provision of new affordable
housing units.
V. Summary of Housing Need and Achievement of Need
In summary, the City of Azusa has identified a 5 -year low- and
moderate housing need (1984-1989) as follows:
New housing construction by 1989
for low- and moderate -income
households.
Rehabilitation of existing stock.
The City's efforts to accommodate the
new housing construction needs in the
1989) are summarized as follows:
New housing construction by 1989
for low- and moderate income
households.
Rehabilitation of existing stock
as projected to 1986.
40 C.
No. of Units needed
238
100
rehabilitation needs and
same 5 -year period (1984-
342
116
Based upon this analysis, the City of Azusa is meeting its
identified needs to accommodate low- and moderate -income
households with existing programs already approved for funding
through 1986. The City intends to utilize CDBG and other federal
funds as they are available to maintain an active housing
maintenance program. Based upon this, it is found that, pursuant
to Section 33670 of the Health and Safety Code that a substantial
effort to meet low -and moderate income housing needs in the
Community is being made, and that this effort including the
obligation of funds currently available for the benefit of the
community from state, local and federal sources for low- and
moderate -income housing above, is equivalent in impact to the
funds otherwise required to be set aside pursuant to said
section. Furthermore, that the Agency has not taken any actions
to displace households and that any future actions within the
next 3 -years (ending in 1989) which may displaced low- and
moderate -income households can be accommodated by replacement
housing which is currently approved and projected to be available
on the market prior to 1989.
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APPENDIX A
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Section 33334.2 of the Health and Safety Code
and Related Code Section
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(3) A time limit, not to exceed 12 years, for commencement
of eminent domain proceedings to acquire property within the project
area. Such time limitation may be extended only by amendment of the
redevelopment plan.
This section shall apply only to redevelopment projects for which
a final redevelopment plan is adopted pursuant to Article 5 (commen-
cing with Section 33360) of this chapter on,or after October 1, 1976.
33333.3. The redevelopment agency shall send a notice of
preparation to each affected taxing entity, as defined in Section
33353.2, and a copy of a draft environmental impact report to each
affected taxing entity and the fiscal review committee, if one is
created, prepared in accordance with the provisions of the California
Environmental Quality Act, Division 13 (commencing with Section 21000)
of the Public Resources Code, and regulations adopted pursuant
thereto. In the event a fiscal review committee is created, the draft
environmental impact report shall be sent to the fiscal review
committee prior to the time, -or at the same time, that the redevelop-
ment plan is sent to the chairperson of the fiscal review committee
pursuant to Section 33353.4.
33334. Every redevelopment plan shall describe generally the
proposed method of financing the redevelooment of the project area.
33334.1. If the plan authorizes the issuance of bonds to be
repaid in whole or in part from the allocation of taxes pursuant to
Section 33670, the plan shall establish a limit on the amount of
bonded indebtedness which can be outstanding at one time without an
amendment of the plan. This section shall apply only to redevelopment
plans adopted on or after October 1, 197-
33334 .2.
976
33334.2. (a) Not less than 20 percent of all taxes which are
allocated to the agency pursuant to Section 33670 shall be used by the
agency for the purposes of increasing and improving the community's
supply of low- and moderate -income housing available at affordable
housing cost, as defined by Section 50052.5,* to persons and families
of low or moderate income, as defined in Section 50093, and very low
income households, as defined in Section 50105,* unless one of the
following findings is made:
(1) That no need exists in the community to improve or
increase the supply of low- and moderate- income housing in a manner
which would benefit the project area.
(2) That some state percentage less than 20 percent of the
taxes which are allocated to the agency pursuant to Section 33670 is
sufficient to meet the housing need.
(3) That a substantial effort to meet low- and
moderate -income housing needs in the community is being made, and that /
this effort, including the obligation of funds currently available for
* See Appendix 3, p. A-17
c c
the benefit of the community from state, local, and federal sources
` for low- and moderate -income housing alone or in combination with the
taxes allocated under this section, is equivalent in impact to the
funds otherwise required to be set aside pursuant to this section. The
legislative body shall consider the need that can be reasonably
foreseen because of displacement of persons and families of low or
moderate income or very low income households from within or adjacent,
to the project area, because of increased employment opportunities, or
because of any other direct or indirect result of implementation of
the redevelopment plan.
(b) Within 10 days following the making of a finding under
subdivision (a), the agency shall send the Department of Housing and
Community Development a copy of the finding, including the factual
information supporting the finding.
(c) In any litigation to challenge or attack a finding made
under subdivision (a), (b), or (c), the burden shall be upon the
agency to establish that the finding is supported by s
evidence in light of the entire record before the agency. ubstantial
(d) Nothing in this section shall be construed as relieving any
other public entity or entity with the power of eminent domain of any
legal obligations for replacement or relocation housing arising out of
its activities.
(e) In carrying out the purpose of this section, the agency may
exercise any or all of its powers, including the following:
(1) Acquire land or building sites.
(2) Improve land or building sites with onsite or offsite
improvements.
(3) Donate land to private or public persons or entities.
(9) Construct buildings or structures.
(5) Acquire buildings or structures.
(6) Rehabilitate buildings or structures.
(7) Provide subsidies to, or for the benefit of, very low
income households, as defined by Section 50105,* lower income house-
holds, as defined by Section 50079.5,* or persons and families of low
or moderate income, as defined by Section 50093.*
loans, adv(8) Develop
e elo p plans, aOay indebednesrincipal and interest on bonds,
charges. Pay Financing or carrying
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(f) The agency may use .these funds to meet, in whole or in part,
the replacement housing provisions in Section 33413. However, nothing
in this section shall be construed as limiting in any way the require-
ments of that section.
(g) The agency may use these funds inside or outside the project
area. The agency may only use these funds outside the project area
upon a resolution of the agency and the legislative body that such use
will be of benefit to the project. The determination by the agency and
the legislative body shall be final and conclusive as to the issue of
benefit to the project area. The Legislature finds and declares that
the provision of replacement housing pursuant to Section 33413 is
always of benefit to a project. Unless the legislative body finds
before the redevelopment plan is adopted, that the provision of
low -and moderate -income housing outside the project area will be of
benefit to the project, the project area shall include property
suitable for low- and moderate -income housing.
(h) The Legislature .finds and declares that expenditures or
obligations incurred by the agency pursuant to this section shall
constitute an indebtedness of the project.
(i) The requirements of this section shall only apply to taxes
allocated to a redevelopment agency for wnicn a final redevelopment
plan is adopted on or after the effective date of this section, or for
any area which is added to a project by an amendment to a redevelop-
ment plan, which amendment is adopted on or after the effective date
of this section. An agency may, be resolution, elect to make all
part of the requirements of this section or
applicable to any redeveloo-
ment project for which a redevelopment plan was adopted prior to
January 1, 1977, subject to any indebtedness incurred prior to the
election.
(j) (1) Notwithstanding Sections 50079.5, 50093, and 50105, for
purposes of providing assistance to mortgagors participating in a
homeownership residential mortgage revenue bond program pursuant to
Section 33750, or a home financing program pursuant to Section 52020,
or a California Housing Finance Agency home financing program, "
median income" means the highest of the following: area
(A) Statewide median household income.
(B) Countywide median household income.
(C) Median family income for the area, as determined
by the United States Department of Housing and Urban Development
with respect to either a standard metropolitan statistical area
or an area outside of a standard metropolitan statistical area.
Nothing in Section 50093 shall prevent the agency from adopting
separate family size adjustment factors or programmatic definitions of
income to qualify households, persons, and families for the programs {
of the agency.
(2) To the extent that any portion of the Low and Moderate
Income Housing Funds is expended to provide assistance to mortgagors
participating in programs whose income exceeds that of persons and
families of low or moderate income, as defined in Section 50093, the
agency shall, within two years, expend or enter into a legally
enforceable agreement to expend twice that sum exclusively to increase
and improve the community's supply of housing available at affordable
housing cost, as defined in Section _50052.5, to lower income
households, as defined in Section 50079.5, of which at least 50
percent shall be very low income households, as defined in Section
50105.
(3) In addition to the requirements of subdivision (c) of
Section 33413, the agency shall require that the lower and very low
income dwelling units developed pursuant to this subdivision remain
available at affordable housing cost to lower and very low income
households for at lest 30 years, except as to dwelling units
developed with the assistance of federal or state subsidy programs
which terminate in a st.)rter.period and cannot be extended or renewed.
(4) The ageicy shall include within the report required by
Section 33080 informa=ion with respect to compliance by the agency
with the requirements of this subdivision.
33334.3. The funds which are required by Section 33334.2 to be
used for the purposes of increasing the community's supply of low- and
moderate -income housing shall be held in a separate Low and 1oderate
Income Housing Fund until used.
Anv interest earned by the Low and 'loderate Income Housing Fund
shall accrue to the fund and may only be used in the manner prescribed
in Section 33334.2.
33334.5. Every redevelopment plan adopted or amended to expand
the project area after January 1, 1977, shall contain a provision that
whenever dwelling units housing persons and families of low or
moderate income are destroyed or removed from the low- and
moderate -income housing market as part of a redevelopment project, the
agency shall, within four years of such destruction or removal,
rehabilitate, develop, or construct, or cause to be rehabilitated,
developed, or constructed, for rental or sale to persons and families
of low or moderate income an equal number of replacement dwelling
units at affordable housing costs, as defined by Section 50052.5,*
within the project area or within the territorial jurisdiction of the
agency, in accordance with all of the provisions of Sections 33413 and
33413.5.
33335. Every redevelopment plan shall provide for the agency
to lease or sell all real property acquired by it in any project area,
except property conveyed by it to the community.
' See Appendix 3, p. A-17
C
Appendix 3 -
Health and Safet
•�
n
���i i.ar. oecUa
s reterred to in Sect
to in Sections 2'i7
on
4
A
tion 50052.5 (as referred to in Sections 33334.2.
50053 as reterred to in Section 50052.5); Section
on 33334.2 and Section 33760.5 ; Section 50093 as
34.2. 33411.2, 33413.7, 33464. 33478.1. 3487,
3 as reterred to in Sections 33447 and 33449 under
41056. and as referred to in Government Code
105 as referred to ;� so ,; •» ��,
a„w aoiou.o, ana as referred to n
ious Section number of 41067. Also
as reterred to in Sections 50052.5 A"ri
7
50052.5. "Affordable housing cost" means, with respect to lower income
households, housing cost not exceeding 25 percent of gross income. The department
shall, by regulation, adopt criteria defining, and providing for determination of, gross
income and housing cost for purposes of determining affordable housing cost for lower
income households under this section. Such regulations may provide alternative
criteria, where necessary to be. consistent with pertinent federal statutes and
regulations governing federally assisted housing. The agencv may, by regulation. adopt
alternative criteria, and pursuant to subdivision (f) of Section 50462, alternative
Percentages of income may be adopted for agencv-assisted housing developments.
With respect to lower income households who are tenants of rental housing
developments and members of shareholders of cooperative housing developments or
limited equity cooperatives, "affordable housing cost" has the same meaning as
affordable rent, as defined in Section 50053.
Regulations of the department shall also include a method for determining the
maximum construction cost, mortgage loan, or sales price that will make housing
available to an income group at affordable housing cost.
50053. "Affordable rent" means, with respect to lower income households, rent
not in excess of the percentage of the gross income of the occupant person or family
established by regulation of the department, and which shall not exceed 25 percent of
gross income nor be less than 15 percent of gross income. Such regulations shall
permit alternative percentages of income for aeenev-assisted rental and cooperative
housing developments pursuant to regulations adopted under subdivision (f) of Section
50462. The department shall, by regulation, adopt criteria defining, and providing for
determination of, gross income and rent for purposes of this section. Such regulations
muy provide alternative criteria, where necessary to be consistent with pertinent
federal statutes and revelations governing federally assisted rental and cooperative
housing. The agency may. by regulation, adopt alternative criteria, and pursuant to
ngency-assim
subdivision (f) of Section 50362, alternative percentages of income may be adopted for
sted housing developments.
50079.5. "Lower income households" means persons and families whose income
does not exceed the qualifying limits for lower income families
amended from time to time pursuant to Section 8 of the as established and
United States Housing :pct of
1937. The limits shall be published by the department in the California Administrative
Code as soon as possible after adoption by the Secretary of Housing and Urban
Development. In the event such federal standards are discontinued, the department
shall, by regulation, establish income limits for lower income households for all
geographic areas of the state at 80 percent of area median income, adjusted for family
size and revised annually. As used in this section, "area median income" means the
median family income of a geographic area of the state.
50093. "Persons and families of low or moderate income" means persons and
families whose income does not exceed 120 percent of area median income, adjusted
for family size by the department in accordance with. adjustment factors adopted and
amended from time to time by the United States Department of Housing and Urban
Development pursuant to Section 8 of the United States Housing Act of 1937. Such
income limits shall be published as regulations by the department. However,the
agency and the department jointly, or either acting with the concurrence of the
Secretary of the Business and Transportation Agency, may permit the agency to use
higher income limitations in designated geographic areas of the state, upon a
determination that 120 percent of the median income in the particular geographic area
is too low to qualify a substantial number of persons and families of low or moderate
income who can afford rental or home purchase of housing financed pursuant to Part 3
(commencing with Section 50900) without subsidv.
"Persons and families of low—
or moderate income" includes veru loty income
households, as defined in Section 50105 and lower income households as defined in
Section 50079.5, and includes persons of low income, persons and families of moderate
income, and middle-income families. As used in this division:
(a) "Persons of low income" means persons or families who are eiigible for
financial assistance specifically provided by a governmental. agency for the penent of
occupants of housing financed pursuant to this division.
(b) "Persons and families of moderate income" or "middle-income families"
means persons and families of low or moderate income whose income exceeds the
income limit for lower income households.
As used in this section, "area median income" means the median family income
of a geographic area of the state, as annually estimated by the United States
Department of Housing and Urban Development pursuant to Section 8 of the United
States Housing Act of 1937. In the event such federal determinations of area median
income are discontinued, the department shall establish and publish as regulations
income limits for persons and families of low or moderate income for all geographic
areas of the state at 120 percent of area median income, adjusted for family size and
revised annuallv.
The department shall establish and publish a general definition of income,
including inclusions, exclusions. and allowances, for cuslifying persons under the
income limits of this section and Sections 50079.5 and 50105, to be used where no
other federal or state definitions of income ap
established by regulation. ply. Such definition need not be
Nothing in this division shall prevent the agencv or the department from
adopting separate family size adjustment factors or programmatic definitions of
income to qualify households, persons, and families for programs of the agencv or
department, as the case may be.
50105. "Very low income households" means persons and families whose incomes
do not exceed the qualifying limits for very low income families as established and
amended from time to time pursuant to Section 8 of the United States Housing Act of
1937. Such limits shall ,)e published by the department in the California
Administrative Code as soon as possible after adoption by the Secretary of Housing
and Urban Development. In the event such federal standards are discontinued, the
department shall, by regulation, establish income limits for very low income
households for all geographic areas of the state at 50 percent of area median income,
adjusted for family size and revised annually. As used in this section, "area median
income" means the median family income of a geographic area of the state.
50462. The department may initiate, develop, and propose regulations for
adoption by the agency and review regulations proposed by the board prior to their
taking effect, with respect to the following:
(a) Standards for affirmative marketing programs of housing sponsors seeking
financial assistance from the agencv.
(b) Criteria for certifving that the sale or conveyance of real orooertv
pursuant to Section 51061 or Section 51251 will primarily benefit persons and families
of low or moderate income living in a housing development or a residential structure.
(c) Regulations permitting grants to be made by the agencv to housing
sponsors for the purpose of attaining affordable rents in housing developments
financed by the agency. Such grants shall not be made with moneys derived from the
sale of bonds.
(d) Regulations governing payments, procedures, and eiigibility for relocation
assistance for individuals and families displaced by actions of the agency or of housing
sponsors of housing developments or neighborhood improvement loans.
(e) Criteria for qualification of persons, families, and households as persons
and families of low or moderate income, lower income households, or veru loty income
households.
(f) Regulations establishing the maximum percentage of income which may be
paid by persons and families of low or moderate income for housing cost within the
meaning of the term affordable housing cost, as defined in Section 50052.5.
(g) Regulations designating geosraohical areas of need throughout the state
for housing construction or rehabilitation. as identified in the California Statewide
Housing Plan, identifying housing markets in which insufficient financing is available
for purchase or rehabilitation of existing housing, identifying types of households with
particularly severe housing needs, or establishing priority criteria for the selection of
homes and projects to be financed as housing developments or neighborhood
improvement loans.
(h) Criteria for inclusion of nonhousing facilities in housing developments
financed by the agency.
Regulations proposed by the agencv in such areas of responsibility shall not take
effect without concurrence of the director, the Secretary of the Business and
Transportation Agency, or a representative of the secretary specifically designated for
such review and approval.
Appendix 4 -
Government Code. Section6063, as referred to in Section 33348.5 and 33452 of
the Community Redevelopment Law.
6063. Publication of notice pursuant to this section shall be once a week for
three successive weeks. Three publications in a newspaper regularly published once a
week or oftener, with at least five days intervening between the respective publication
dates not counting such publication dates, are sufficient. The period of notice
commences upon the first day of publication and terminates at the end of the twenty-
first day, including therein the first day.
Appendix 5 -
government Code. Section 65402. as referred to in Section 33352(h) of the
Community Redevelopment Law.
65402. (a) If a general plan or part thereof has been adopted, no real property
shall be acquired by dedication or otherwise for street, square, park or other public
purposes, and no real property shall be disposed of, no street shall be vacated or
abandoned, and no public building or structure shall be constructed or authorized. if
the adopted general plan or part thereof applies thereto, until the location, purpose
and extent of such acquisition or disposition, such street vacation or abanconment, or
such public building or structure have been submitted to and reported upon by the
planning agency as to conformity with said adopted general plan or part thereof. The
planning agency shall render its report as to conformity with said adopted general Dian
or part thereof within forty (40) days atter the matter was submitted to it, or
longer period of time as may be designated by the legislative boay. such
If the legislative body so provides, by ordinance or resolution, the provisions of
this subdivision shall not apply to: (1) the disposition of the remainder of a larger
parcel which was acquired and used in part for street purposes; (2) acquisitions,
dispositions, or abandonments for street widening; or (3) alignment projects, provided
such dispositions for street purposes, acauisitions, dispositions, or abandonments for
street widening, or alignment projects are of a minor nature.
(b) A county shall not acquire real property for any of the purposes specified
in paragraph (a), nor dispose of any real property, nor construct or authorize n public
building or structure, in another county or within the corporate limits of a city, if such
city or other county has adopted a general plan or part thereof and such general plan
or part thereof is applicable thereto, and a city shall not acquire real property for any
of the purposes specified in paragraph (a), nor dispose of any real property, nor
construct or authorize a public building or structure, in another city or in
unincorporated territory, if such other city or the county in which such unincorporated
territory is situated has adopted a general plan or part thereof and such general plan
or part thereof is applicable thereto, until the location, purpose and extent or such
acquisition, disposition, or such public building or structure have been submitted to and
reported upon by the planning agency having jurisdiction, as to conformity withsaid
adopted general plan or part thereof. Failure of the planning agency to report within <
C
APPENDIX H
A
Redevelopment Project Area Map
0
i
LEGEND
Azusa Central Business
District Project Area
Azusa West End
Project Area
-I PA CEL 2 I
:I r
tl I`
I
('IT1 OF
itZUSA
i
4
clrY OF AZUS�
�.V. W9.ED
Aj
fl
il PARCEL 1 - :C
�� , �� .. .1 � 1 1(�� �; ;-��r•�-,fit ;
r ,r'
, r_���� � ( � U < �',.�{ 1� f(' iy l• �� � ¢.-SIL`] ��.,- _ i
APPENDIX C
Housing Rehabilitation Project Descriptions
COMMUNITY REDEVELOPMENT
AGENCY
I N F O.R H A T I 0_N
JANUARY 11, 1984 -----------
TO: HONORABLE MAYOR, CITY COUNCIL AND
ACTING CITY ADMINISTRATOR
FROM: GARY WERNER, CDBG PROGRAM COORDINATOR
ROBB STEEL, ASSISTANT CDBG PROGRAM COORDINATOR
SUBJECT: HOUSING REHABILITATION PROGRAMS
BACKGROUND
On December 19, 1983 the City Council continued discussion on the attached reoort
regarding alternative means for administering the City's housing renabilitation
programs. The report recommended that the City Council authorize staff to ascer-
tain the amount of funds available in each of the loan pools and then authorize
preparation of a Request For Proposals (RFP) for housing rehabilitation program
administration services. However, the City Council expressed its desire to first
review the pertinent financial information before deciding how to administer the
programs. Staff has researched the financial records and the data is provided
herein for your review and consideration.
The City's contract for administration services with Bill Bond and Associates
expired on December 31, 1983.
DISCUSSION
The City of Azusa and the Azusa Redevelopment Agency administer three (3) housing
improvement/rehabilitation loan programs. These programs are briefly described
below:
A. CDBG Low Interest Loan Proqram
This program, started in 1977, provides 10 year, ;5,000 maximum, 47� minor home
improvement loans to low income households (up to 521,900 annual income per year
for a family of four). The program is funded from CDBG funds with the City ad-
vancing the monies and subsequently submitting a claim to the County of Los Angeles
for reimbursement. Program income (i.e. loan repa?nnents) has been deposited into
the General Fund, however, the funds must eventually either be returned to the
Continued...
POMP /9111 114_St'lt
0
Housing Rehabilitation Programs
Page Two
January 11, 1984
County or reused to make additional loans
the last 7 years:
TABLE 1
0
Table 1 shows this program's activity over
1First 6 months of 1933-34
SOURCE: Azusa Finance Department, Project Files
If approved by the City Council, the $85,000 available fund balance could be used (using
a $5,000 average loan value, excluding administrative costs) to issue 17 new loans.
Apparently, few loans were made under this program in 1982-83 and 1983-34 because program
income of $64,214 has not repaid to the loan pool for reuse.
B. CDBG Below Market Interest Rate Program IC IR)
Begun in 1979, this program provides 20 year, :27,900 maximum, 6"1 interest rate, major
rehabilitation loans to low income households {same income eligibility as A above),
The program is funded with CDBG funds under an interest subsidy agreement with Crocker
Bank. The City of Azusa desposited $75,000 with Crocker in 1979 under a lump -sum
drawndown provision of the CDBG Program. The $75,000 deposit secured a cemmittment
from Crocker Bank to originate up to $375,000 of lora interest loans. Crocker Bank
receives 0.351 of the monthly aggregate outstanding principal balance as compensation
for its participation in the loans. Table 2 shows this Program's activity:
Continued...
CDBG
Low Interest Loan Program
77-78
78-79
79-80 80-81 81-82 82-83
83-841
TOTALS
Number of
Loans
4
6
16 8 2
,
1
1+
33
Total Loan
Value
$9,000
16,700
44,700 21,500 8,000 5,000
5,000' ^'
5109,900
Average Loan
Value
$2,250
2,730
2,790 2,690 4,000 5,000
5,000
2,892
Cumulative
Annual
Repayment
(1977-83)
-
-
_
- -
-
$64,214
Current Estimated Fund Balance $85,C00
1First 6 months of 1933-34
SOURCE: Azusa Finance Department, Project Files
If approved by the City Council, the $85,000 available fund balance could be used (using
a $5,000 average loan value, excluding administrative costs) to issue 17 new loans.
Apparently, few loans were made under this program in 1982-83 and 1983-34 because program
income of $64,214 has not repaid to the loan pool for reuse.
B. CDBG Below Market Interest Rate Program IC IR)
Begun in 1979, this program provides 20 year, :27,900 maximum, 6"1 interest rate, major
rehabilitation loans to low income households {same income eligibility as A above),
The program is funded with CDBG funds under an interest subsidy agreement with Crocker
Bank. The City of Azusa desposited $75,000 with Crocker in 1979 under a lump -sum
drawndown provision of the CDBG Program. The $75,000 deposit secured a cemmittment
from Crocker Bank to originate up to $375,000 of lora interest loans. Crocker Bank
receives 0.351 of the monthly aggregate outstanding principal balance as compensation
for its participation in the loans. Table 2 shows this Program's activity:
Continued...
�J
1
Housing Rehabilitation Programs
Page Three
January 11, 1984
Number of Loans
Total Loan Value
Average Loan Value
TABLE 2
CDBG BMIR Loan Activi
1979-80 80-81 81-82
7 2 1
0
82-83
3
MM
H
TOTALS
17
$75,860 40,000 25,000 55,900 78,400 $275,10'0
$10,837 20,000 25,000 18,633 19,600 $ 16,186
Current Estimated Fund Balance $28,000
Crocker Bank has recently had a complete changeover in their Community Develooment
Department staff. The City will be working with Crocker in the weeks ahead to resolve
several minor problems and reconcile the various accounts on deposit with them.
C. Community Redevelopment Aqency Rehabilitation Loan Proqram
Begun in 1980, this program provides 20 year, $27,000 maximum, 6; interest rate rehab-
ilitation loans to low and moderate income households (up to 526,230 annual income for
a family of four), The program was established as a direct loan from the Redevelopment
Agency to the borrower with, the Agency servicing the loans. All loan repayments are
deposited to the fund for the purpose of making new loans. Table 3 shows the Program's
activity over the last 4 years:
1980-81
Estimated Loan Fund $300,000
Number of Loans 5
Total Loan Value $ 73,250
Average Loan Value $ 14,650
Estimated Annual
Repayment (PgI) $ 3,000
Continued...
TAELE 3
CRA Loan Activity
81-82 82-33
229,750 96,250
10 6
147,500
95,150
14,250
15,858
9,000
14,000
83-34
15,100
0
0
0
24,000
Current Estimated Outstanding Principal Balance $295,000
Lurrent Estimated Loan Fund Balance $ 23,000
TOTALS
N/A
21
$310,900
S 14,806
S 50,CCO
Housing Rehabilitation Programs `
Page Four
January 11, 1984
Based upon the loan repayment rate and the current loan fund balance, it is estimated
that up to four loans could be made under the program in 1984-85.
D. Administrative Costs
The City of Azusa has contracted with Bill Bond and Associates for housing rehabilitation
administration services. The firm submits two (2) separate invoices each month: one
for the Low Interest Loan Program (LILP) and one for the Crocker Bank and Cocanunity
Redevelopment Agency Below Market Interest Rate (BMIR) Programs. Table 4 depicts the
relationship between administrative costs and loan origination activity from 1980-83:
TABLE 4
Administrative Costs
Number of Loans
Loan Value
Estimated Admin. Costs
Admin. Costs/Loan
Admin. Costs/Loan Value
Number of Loans
Loan Value
Estimated Admin. Costs
Admin. Costs/Loan
Admin. Costs/Loan Value
1980-81
7
$113,250
5 8,330
5 1,190
7.4*"
1980-81
8
$21,500
S 5,500
$ 693
2 6"
SOURCE: Finance Department
Continued...
BI'iIR
1981-82
11
167,500
18,247
1 ,658
10.9°6
LILP
1931-82
2
8,000
7,000
3,533
88
1982-33
1983-34
9
151,050
78,400
9,159
6,014
1,017
1,504
1982-83
1
5,000
5,500
5,500
110°6
1983-84
5 ,000
2,500
2,500
50
TOTALS
31
510,200
41 ,750
> 1,346
TOTALS
12
539,500
320,500
5 1 ,708
C
Housing Rehabilitation Programs
Page Five
January 11, 1984
The data indicate that the BMIR Programs have been administered relatively effeciently
over the last 3 years with administrative costs averaging 8.2% of loan value. Conversely,
the data indicate that the LILP Program has incurred excessive administrative costs rela-
tive to loan volume. This occurred because the number of new loans decreased yet admin-
istrative costs remained relatively stable. Although few new loans were originated, the
City paid for services to receive inquiries and commence loan processing. As a result,
the administrative cost to loan value ratio was excessive. Part of the problem may have
been that the Bond's were not aware of the program income available for reuse and thus
the program was not aggressively marketed.
CONCLUSIONS AND RECOMMENDATIONS
Based upon the foregoing financial data, the City of Azusa has the financial resources
to originate approximately 17 low interest loans and 2 - 4 Community Redeveiooment
Agency loans, excluding administrative costs. This level of activity could probably
support employment of one full-time staff person fora short period of time (4-6 months).
Once the loan pool was depleted, there would be no further need for the staff person.
The City Council will soon be considering the use of unexpended and 10th Program Year
CDBG Funds. Housing rehabilitation is an important and documented need of the community
and a program highly encouraged by HUD. As a result, the City may consider supplementing
the various loan pools with CDBG funds.
However, rather than just augment the existing loan pools, the City should first evalu-
ate the appropriateness and effectiveness of its current programs in meeting the City's
needs. With information supplied by the soon to be completed Housing Element, the City
may wish to redefine its housing rehabilitation program objectives and thus alter the
types of programs it offers. This, and the level of financial committment, would
obviously affect the choice of administrative organizations.
Because it is difficult, if not impossible, to recommend the most efficient course of
action with respect to housing rehabilitation administration services without knowing
the approximate level of future financial cemmittment, the program type and scope,
staff recommends that the City Council take the following interim actions:
1. Temporarily discontinue accepting new loan applications. Since the contract
with Bill Bond and Associates expired on December 31, 1933, there is no formal
administrative staff for the program. Existing loans --approved or underway --
would be administered by existing staff 2nd phone inquiries will be received
and logged. City Council action will be necessary to reinstate new, revised or
existing programs.
2. Authorize staff to further evaluate the existing housing rehabilitation programs
and their effectiveness at meeting the City's needs. This evaluation would rely
heavily upon the soon to be comoleted Housing Element for definition of the City's
needs, goals and objectives. This evaluation would result in recommendations to
revise the City's housing program.
Continued...
Housing Rehabilitation Programs
Page Six
January 11, 1984
3. Consider allocating sufficient CABG or other funds to the housing rehabilitation
activity.
Based upon the results of these actions, the City can then choose the most effective
means of administering its housing programs.
/tdb
EXIIIBIT A 3
PAGE 1 OF
COUNTY OF LOS ANGELES
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
PROJECT' DESCRII'1'ION
1. OPERATING AGENCY: 2. PROJECT NAME:
CITY OF AZUSA
213 E. Foothill Blvd. HOUSING REHABILITATION
Azusa, CA 91702
3. PROJECT NUMBER: 4. ORIGINAL
840.032 x AMENDMENT NUMBER_
11/12/84
S. DESCRIPTION
Briclly describe the project identifying all major activities to be undertaken. Indicate if this project is new, continuing or
multi-year.
The purpose of this project is to provide low interest home improvement
loans or rebates to qualified low -and moderate income homeowners throughout
the City of Azusa and law interest loans, rebates, or grants to qualified
owners of multiple -family dwelling units. Specifically, the project consists
of the following:
(see page 3)
XAdditional sheets attached.
6 mcivrION
Indicate the address or boundaries of the project :rod the census tract in which it is located. A map identifying the project
location must be attached.
Citywide Program: Census Tracts 4006, 4008, 4040, 4041, 4042, 4043, 4044,
4045
7. ELIGIBILITY
This project is eligible under 24CFR 570.
202 (b)
& COMPLIANCE WITI1 PRIMARY
OBJECTIVE
All projects must meet one of three national objectives. This project falls within the following standard: (check only one)
x Activities beneliting low and moderate income persons, under 24CFR 570.901 (b) (1) (iv)
If this project has an area -wide benefit, the percentage of low and moderate income persons to benefit, as indicated
by the 1980 census. is .
Activities which aid in the prevention or elimination of slums or blight, under 24CFR 570.901 (h) (2) .
If the project will be undertaken in a slum or blighted arca, hes the arca been designated a Redevelopment Project Area?
If not. has the area been formally approved by the CDC as blighted?
_. Activities designed to meet community development needs having a particular urgency, under 24CFR 570.901 (b) (3).
ExIuuIT A
PAGE 2 OF
OPERATING AGENCY PROJECT NUMBER
CITY OF AZUSA __. ___ -------84C-O32 __..._.
3
9. AREA'f0 BENEFIT FROM TRE
PROJECT
Residents of the following census tracts, enumeration districts, or block groups will benefit from this project (Identify the
service area on the required project map.)
CITYWIDE
10. IMPLEMENTATION SCIIEDULE
AND ACCONIPLISIINIEN•IS
Identify specific tasks and the estimated tine francs fur their completion.
A. Select Housing Rehabilitation Consultant
B. Select Lending Institution
C. Market Program
D. First Loan/Rebate Approved
E. Estimated Number of Rebates
F. Estimated Number of Loans
U. PROJECT• AD1%IINISTRAf1ON
Identify the entity implementing the project.
City of Azusa Community Development Department/CDBG Office
12. PROFESSIONAL SERVICES
If consultants will be used, describe their role.
Completed ( 9/84)
Completed (11/84)
November 1984 (ongoing)
January 1984
15-20 units
28-34 units
A. To administer the Housing Rehabilitation Program. This includes program
development, marketing, application process inq and 61 igibiIity determinations,
work write-ups, bid preparation, construction inspection, and Iiason with
Bank or City Finance Department. The consultant was selected in accordance
with OMB Circular A-102.
13. INSURANCE
The operating agency shall comply with the insurance reyuirenents described in Attachment I to this Exhibit A for rhe term
of this project.
14. SPECIAL CONDITIONS
0
•` PAGE'3
Program Discription (continued)
5. DESCRIPTION (continued)
Owner -Occupied Properties (low -and moderate income
households)
6% low interest loans; maximum loan of $20,000; maximum
term of 15 years
35% rebate; $7,000 maximum per household
Deferred loans for households otherwise unable to
qualify for low interest loans or rebates.
Owner -Occupied (Non low -and moderate -income households)
Same programs as above except that only health and
safety code deficiencies can be addressed.
Renter -Occupied Properties
8% loans to owners of rental properties primarily
occupied by low -and moderate -income tenants; $10,000
maximum per unit; $40,000 maximum per owner; owner
agrees to maintain rent affordability.
30% rebates to owners of rental properties primarily
occupied by low -and moderate -income tenants; $3,000
maximum per unit; $12,000 per owner. Owner agrees to
maintain rent affordability.
Deferred payment loans or low-interest loans up to a
maximum of $5,000 per unit under the Rental
Rehabilitation Grant Program.
Continued ....................
0 •
PAGE 3
Program Description (conintued)
The City of Azusa has contracted with a private consultant to
administer the program. The allocation of funds is as follows:
CDBG Lump -Sum Deposit
Rebates
Rental Rehab Grant Funds
Administration
Source of Funds
1
$190,000
2
40,000
3
40,000
4
40.000
TOTAL: $310,000
$125,000 CDBG + $65,000 Program Income
$ 40,000 Community Redevelopment Agency Funds
$ 40,000 Grant under Rental Rehab Program
$ 40,000 CDBG
TRANSCRIPT OF A PORTION OF THE REDEVELOPMENT AGENCY MEETING OF APRIL
1, 1985 WITH REGARD TO LOW AND MODERATE INCOME HOUSING NEEDS.
WOOD: Mr. Chairman, Item #3 is a resolution finding that
a substantial effort is+being made to meet low and
moderate income housing needs. The recommendation in
this case is to adopt Resolution No. 188. Again, Mr.
Werner is present, should there be any questions in
this matter, and the City Attorney has also reviewed
the document.
LATTA: Don't we want to hold this over until Mr. Werner has
time to review it?
WERNER: Mr. Chairman and members of the Agency, my name is
Gary Werner, Vice President of Municipal Services. I
have had an opportunity to review the document and there
were no substantial changes to it. I would, however, like
for the record, to indicate a few points. No. 1. We made
reference to the City's Housing Element, we would like to
incorporate that as an appenda-ge to the report. Secondly,
the purpose in making the findings that we're recommending
here, is in order to free up tax increment revenues of.
the Redevelopment Agency that have up to this point been
set aside for low, moderate income housing purposes. The
reasons for freeing up those funds, of course, would be
to commit to redevelopment activities that the Agency is
now pursuing, and that within approximately 60 days, we'll,
the Agency will.be in a position of committing those
funds through public financing and these funds, are indeed
needed for that purpose. So, I just wanted to make those
few points as a matter of record. Upon approval of this,
staff will then, as required by law, transmit these
documents up to the State and have them review it for
any comment that they make. So, if they want to make
any comments.
MOSES: Do you have any questions? If there are none, then
thank you Mr. Werner.
THORSON: I have two comments, Mr. Chairman. First of all, I have
reviewed this and talked quite a bit with Gary about it,
and I have no doubt that you have met the findings require-
ment of Health and Safety Code Section 33334.2, so that
you will be able to free up approximately, quite a bit
of money per year, to use for redevelopment projects.
Most of which, incidentally, will probably benefit low
and moderate income housing in the project areas, anyway.
The only other comment I have is a slight reorganization
of the section numbers. The first three paragraphs are
actually findings and should be so noted. And then, the
second three paragraphs should be redesignated as
1
TRANSCRIPT -.REDEVELOPMENT AGENCY MEETING OF APRIL 1, 1985
PAGE TWO
THORSON(CONT.): paragraphs 2 through 4, which I have already done on your
copies. If you have any
further --without any further
questions or comments, I'll
read the title of the resolution,
MOSES:
OK. Please do.
THORSON:
This will be Resolution
No. 188. A Resolution of the
Redevelopment Agency of
the City of Azusa finding that
a substantial effort is
being made to meet the need for
low and moderate income
housing within the City of Azusa.
And the appropriate action if you wish to adopt this, is
to waive further reading and adopt.
MOSES:
OK. Will someone offer
to waive further reading and
adopt?
_
COOK:
So moved.
CAMARENA:
Second.
MOSES:
Roll Call.
LARA:
Motion is carried unanimously.-