SUBJECT:  AUTHORIZATION TO ACCEPT A $500,000 CAL HOME PROGRAM GRANT FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

 

COUNCIL DISTRICT: Citywide

 

RECOMMENDATION

 

It is recommended that the City Council:

 

1.      Adopt a resolution accepting a $500,000 CalHome Program grant from the California Department of Housing and Community Development for funding the rehabilitation of owner-occupied homes and authorizing the Director of Housing to execute the grant agreement and any amendments or other documents necessary to implement the Program.

 

2.      Approve the following Appropriation Ordinance and funding source resolution amendments in the Home Investment Partnership Program Fund:

 

a.       Increasing the Rental Rehabilitation Program Projects appropriation by $500,000.

 

b.      Increasing the Earned Revenue by $500,000.

 

BACKGROUND

 

The California Department of Housing and Community Development (HCD) has approved $500,000 in CalHome Program funding for the City of San José, in response to an application submitted by the Housing Department. Acceptance of the grant requires City Council approval. The funds will be used to augment the City’s owner-occupied housing rehabilitation program.

 

ANALYSIS

 

The CalHome Program funding will benefit the City’s home rehabilitation program by enabling an estimated 25 low-income homeowners to receive deferred payment loan funds for rehabilitation of their homes. Only lower-income owner occupants of single-family homes are eligible.

 

The permitted uses of the CalHome funds are very similar to the kinds of rehabilitation and repair work currently funded by the City’s Housing Rehabilitation Program.  The funds may be used for handicapped accessibility improvements and to correct unsafe, unhealthy, or unsanitary conditions.  Funds also may be used for property improvements that are necessary or integral to the other rehabilitation work, permit fees, and consultant services directly related to the rehabilitation work.  Up to 5% of the grant may be spent on the cost of administering the program.  The City is allowed to reuse any loan repayment income only for CalHome eligible homeowners and purposes. 

 

The proposed funding agreement from HCD is attached. 

 

PUBLIC OUTREACH

 

In the preparation of neighborhood plans in connection with the Strong Neighborhoods Initiative, rehabilitation of the existing housing stock has been identified as a need.

 

COORDINATION

 

The preparation of this report has been coordinated with the Office of the City Attorney.

 

COST IMPLICATIONS

 

There are no cost implications associated with this recommendation.

 

 

LESLYE CORSIGLIA                                   

Acting Director of Housing

 

LARRY LISENBEE

Budget Director

 

I hereby certify that there will be available appropriation in the HOME Investment Partnership Program Fund in Fiscal Year 2001-02 moneys in excess of those heretofore appropriated therefrom, said excess being at least $500,000.

 

 

LARRY LISENBEE

Budget Director