HomeMy WebLinkAbout29A - 10-11 ANNUAL ACTION PLAN AMENDMENTSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 4, 2012
TITLE
2010-2011 ANNUAL ACTION PLAN
SUBSTANTIAL AMENDMENTS
-CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1 s` Reading
? Ordinance on 2"d Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Approve a substantial amendment to the 2010-2011 Annual Action Plan approving the
reallocation of Community Development Block Grant funds, and authorize its submittal to the
U.S. Department of Housing and Urban Development;
2. Approve a substantial amendment to the 2010-2011 Annual Action Plan revising the NSP3
Target Geography Area, and authorize its submittal to the U.S. Department of Housing and
Urban Development;
3. Approve the amendment of the Foreclosed Homes Acquisition Program.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
At its regular meeting of August 21, 2012, by a vote of 7:0, the Community Redevelopment and
Housing Commission recommended that the City Council: (1) Approve a substantial amendment to
the 2010-2011 Annual Action Plan approving the reallocation of Community Development Block
Grant funds, and authorize its submittal to the U.S. Department of Housing and Urban
Development; (2) Approve a substantial amendment to the 2010-2011 Annual Action Plan revising
the NSP3 Target Geography Area, and authorize its submittal to the U.S. Department of Housing
and Urban Development, and (3) Approve the amendment of the Foreclosed Homes Acquisition
Program.
DISCUSSION
In May 2010, the City submitted to the U.S. Department of Housing and Urban Development
(HUD) an Annual Action plan. The Annual Action Plan is the document whereby the City formally
applies to HUD for the annual federal grant allocations (CDBG, HOME, ESG, and HOPWA) and
describes how those grant funds will be utilized.
29A-1
2010-2011 Substantial Amendments
September 4, 2012
Page 2
On October 18, 2010, the City Council took several actions pertaining to the financing and
development of a 10,000 square foot community center at Garfield Elementary School, allocating
$2.5 million in Community Development Block Grant (CDBG) funds for the project. The concept of
a community center evolved as part of the extensive outreach effort conducted for the Station
District housing project, and associated Transit Zoning Code. The proposed community center is
being developed in partnership with the Santa Ana Unified School District (SAUSD) in conjunction
with renovation and expansion of the Garfield school facilities. Since the time of the original
funding action, staff has been working diligently with SAUSD staff to facilitate the project, with
SAUSD serving as the lead on the design and construction process. Concurrent with the project
design, staff facilitated meetings with community members to identify their needs and priorities for
the community center.
Subsequent to receiving the required plan approval from the State Architect's Office, SAUSD
competitively bid the work, with the lowest bid coming in above the school district's original
estimate. After additional value engineering and other cost reducing measures, the estimated cost
(hard and soft) are approximately $3,800,000. The increase is proposed to be funded with school
district funding and reallocated CDBG funds.
In compliance with federal requirements, the City drafted a Substantial Amendment to the 2010-
2011 Annual Action Plan (Exhibit 1) to utilize CDBG dollars returned from programs and cancelled
projects at the end of the 2011-2012 fiscal year and be designated to assist in the funding of the
community center project. Legal notice for the CDBG substantial amendment was published in the
Orange County Register, La Opinion and Nguoi Viet News on July 30, 2012.
In addition to the Substantial Amendment above, the City will be further modifying its 2010-2011
Annual Action plan with regards to its NSP 3 program. On February 28, 2011, the City submitted to
HUD a Substantial Amendment to its 2010-2011 Annual Action Plan, which authorized the NSP 3
program. This Substantial Amendment created and established the Target Geography Area in
which the NSP 3 program would operate. The target area has been modified since its inception,
but there still are insufficient foreclosed and abandoned homes within this area. After receiving
additional clarification from HUD staff, City staff is recommending that the Target Geography Area
be revised to match the NSP 2 Target Geography Area (Exhibit 2). Legal notice for NSP3
substantial amendment was published in the Orange County Report, La Opinion and Nguoi Viet
News on August 1, 2012.
Lastly, the City will be amending the Foreclosed Homes Acquisition Program (Program).
Previously, the Program had a resale restriction which required the homeowner to specifically sell
to another affordable homeowner. This restriction narrowed the property owners' ability to sell their
homes, and for banking institutions to provide loans. Therefore, staff is recommending that the
Program be amended to allow for recapture. This change would allow the homeowner to sell to a
non-affordable homeowner where funds will be repaid, which then will be reprogrammed for other
affordable housing activities. This amendment also is consistent with the resale provisions of the
29A-2
2010-2011 Substantial Amendments
September 4, 2012
Page 3
Neighborhood Stabilization Program. While this action is an amendment to the Program, it is not a
substantial amendment as defined in the City's 2010-2015 Consolidated Plan (Exhibit 3).
FISCAL IMPACT
There is no fiscal impact is associated with the submittal of these amendments.
rcL? cb-trilo
ncy T. Edwards
Interim Executive Director
Community Development Agency
NTE/SLB/FH/kg
Exhibit: 1. 2010-2011 Annual Action Plan Substantial Amendment - CDBG
2. 2010-2011 Annual Action Plan Substantial Amendment - NSP3
3. Foreclosed Homes Acquisition Program Description
29A-3
29A-4
CITY OF SAN
JULY 1, 2010-J
1201 1
N N UAL U PDATE
STANTIAL AMENDMENT
29A-5
ll
EXHIBIT 1
29A-6
2010/11-2014-15 CITY OF SANTA ANA CONSOLIDATED PLAN ( SUBSTANTIAL AMENDMENT TO THE
2010/11 ACTION PLAN
SUBSTANTIAL AMENDMENT TO THE FISCAL
YEAR 2010-2011 ACTION PLAN
INTRODUCTION
This is the Substantial Amendment to the City of Santa Ana's Fiscal
Plan, which was submitted to the U.S. Department of Housing and
on May 15, 2010. This Amendment is necessary to allow the Cit
of the construction of a community center. -4
SUBSTANTIAL AMENDMENT
Community Center
11 Annual Action
dopment (HUD)
Iditional funding
In May 2010, the City submitted to the U.S. Departm Se and Urban Development
(HUD) an Annual Action plan. This plan included an alto DBG funds for the purpose of
constructing a community center on the si f Garfield Elry. This project will be
completed in collaboration with the Sant d chct (SAUSD). At the time, the
project was in the very early stages and st id n ate. Since then the
SAUSD has requested cost proposals from q 'fled hich have been recently
received and reviewed by SAU the Cit st proposals exceeded SAUSD estimates.
For this reason the City dra stantia endment to the 2010-2011 Annual Action
Plan to reallocated fund articip further, CS
dollars, in the funding of the
community center. T st of th munity c r is estimated to be $3,850,000. City staff
will be reallocating pa nd ects and funds returned from
programs/projects at the e 2011-201 fiscal year to assist in the funding of the
community
07/30/2012 1 SUBSTANTIAL AMENDMENT TO THE
2010-2011 ANNUAL ACTION PLAN
29A-7
SUBSTANTIAL AMENDMENT TO THE 2010/11- 2014/15 CITY OF SANTA ANA CONSOLIDATED PLAN
2010/11 ACTION PLAN
P RC
SUBSTANTIAL AMENDMENT TO THE
2010-2011 ANNUAL ACTION PLAN
F PERIOD
07/30/2012
29A-8
2010/11-2014-15 CITY OF SANTA ANA CONSOLIDATED PLAN I SUBSTANTIAL AMENDMENT TO THE
2010/11 ACTION PLAN
ACTUAL PROOF OF PUBLICATION TO BE SUBMITTED WITH FINAL DRAFT
NOTICE OF PUBLIC HEARING TO BE HELD BY THE COMMUNITY
REDEVELOPMENT AND HOUSING COMMISSION OF THE CITY OF SANTA ANA
ON THE PROPOSED SUBSTANTIAL AMENDMENT TO THE CITY OF SANTA ANA
CONSOLIDATED PLAN ANNUAL UPDATE 2010-2011 AND COMMENCEMENT OF
THE 30-DAY COMMENT PERIOD
NOTICE IS HEREBY GIVEN that the Community Redevelopm nd Housing
Commission of the City of Santa Ana will conduct a public August 21, 2012
at 6:00 p.m. at the City Council Chambers, 22 Civic Cente za, Ana, CA 92701
on proposed substantial amendment to the City's Cons ated Plan I Update for
2010-2011. On September 4, 2012 on or about 6:0 at the City Co
Chambers, the City Council will take action on the est to authorize sub I of the
substantial amendment to the U.S. Departmen ousin Urban Development
(HUD).
The City had allocated funding as part the 2010-20 nual update for the
30-Day Public Comme
substantial amendm
2012. The draft su st 29,
following locations M
Department- using
20 ivic C e
Civic Cent
Room 8 nd the r Plaza,
construction of a community center. sed subs I amendment redirects
Community Development Block Grant to pa ate in the funding of the
construction of the community center. ing ted for this project is
estimated to be $3,850,000.
The
5iff
ana.ol antial amen
a/default.as
Develop
t wil o be available on the City website http://www.santa-
Agency at
Publish: Ju
07/30/2012
iod a 30- ublic comment period for the draft
III com ce on J 1, 2012 and will end on Augu
tial a all available for public Inspection
at the
aza, 3rd Floor; Community Development Agen
cy-20
t ing normal business hours: Ho
Flo ffice of the Clerk of the Council-20 Civic Cente
Pub rary-26 Civic Center Plaza, Santa Ana, CA 92701.
ritten comments must be submitted to the Community
above locations on or before August 29, 2012.
SUBSTANTIAL AMENDMENT TO THE
2010-2011 ANNUAL ACTION PLAN
29A-9
SUBSTANTIAL AMENDMENT TO THE I 2010/11- 2014/15 CITY OF SANTA ANA CONSOLIDATED PLAN
2010/11 ACTION PLAN
SUMMARY OF PUBLIC COMMENTS
SUMMARY OF PUBLIC COMMENTS RECEIVED DURING 30-DAY COMMENT PERIOD AND STAFF RESPONSE
Pending
8/21)
Pendi
SUBSTANTIAL AMENDMENT TO THE
2010-2011 ANNUAL ACTION PLAN
07/30/2012
29A-10
2010/11-2014-15 CITY OF SANTA ANA CONSOLIDATED PLAN I SUBSTANTIAL AMENDMENT TO THE
2010/11 ACTION PLAN
07/30/2012
SUBSTANTIAL AMENDMENT TO THE
2010-2011 ANNUAL ACTION PLAN
29A-11
CPMP Version 2.0 Grantee Name: Santa Ana, CA
Project Name: Clt of Santa Ana CDA - Public Facility Improvements
Description: IDIS Project #: 1771 UOG Code: CA63342 SANTA ANA
CDBG funds to undertake construction of a new community Center.
National Objective: Low-/Moderate-Income Benefit-Areawide Benefit 570.208(a)(1)
Location: Priority Need Category
CT: 0744.05 BG:1,2,3,4--CT 0744.06 - -- ------
BG:1,2,3--CT:0745.01 BG:1--
Select one: ?
CT:0746.02 BG:1,2--CT:0750.02
BG:1,3--CT:0750.03 BG:2--
CT:750.04 BG:2--88.2% LMA Explanation:
Expected Completion Date: Build neighborhood pride by developing a com r in an area of the city
6/30/2012 that currently lacks recreation and communi ities.
0 jective Category
O Decent Housing
* Suitable Living Environment
O Economic Opportunity
'AWCific Obj s
Outcome Categories 1 kTpvje quality/in crease fadiRk,forlovv-inoomepersons
? Availability/Accessibility
? Affordability 2
? Sustainability
3
11 Public Facilities Proposed 1 'a I
T
FA -
Underway
C
{
> E Com F
al
Acoonp. Type: .
Aocionpl. Type:
v -
o a
'o E
0. u Aooorrtf?l. Type Acaonpl. Type:
Q
Pro ose ormance Measure Actual Outcome
Improve con that contri evelo -use community center
to neighbor pride
03E ities 570.201(c) MabtK Codes
Mabnc Codes
7L ---"L
Matrix Codes
V. - F-- -- - -- -- - I - J71
Matrix Codes Mob be Codes
rq CDBS Proposed Amt. $ 3,850,000 qnd
m Actual A mount
O
} Furl source Fund Source
E
i Aaaonpl. Type: 'W Aoaorrpl. Type: ! V
O1
O
L
a
A • Tyres
Aconnipl. Type: i 1W
06/16/11 67 Exhibit3
29A-12
29A-13
CITY OF SANTA ANA
COMMUNITY DEVELOPMENT AGENCY
20 CIVIC CENTER PLAZA, M-25
SANTA ANA, CA 92701
29A-14
SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2010-
2011 ACTION PLAN: NSP 3 TARGET AREA GEOGRAPHY
INTRODUCTION
They City of Santa Ana's Fiscal Year 2010-11 Annual ActiAoy bmitted to the
U. S. Department of Housing and Urban Development (HU, 2010. The
first Sub stantial Amendment consisted of the City's applicar $1,464,113 in
Neighborhood Stabilization Program funds made availabl he third round
city neede
of funding for that program (NSP 3). In order to aeedjJWd.
Target Area Geography which met HUD's criteria hich it would s
funds. Since that time, there have been insufficie sed and aband
within this initial area to meet our goals. After c HUD, the
determined that the Target Area Geography sho Title 24 Section 91.505 of the Code of F
jurisdictions shall amend their approvI
decisions:
To make a change in its allo
distribution of funds
To carry out an a , u
Consolidated P (includi
action plan;
To change the os
ury a
these
t homes
stipulates that participating
kmake one of the following
ge in the method of
any program covered by the
ome) not previously described in the
, or beneficiaries of an activity.
The ReguI
plans th
amen
Consist
Santa Ana
identifies th
1
2
3
that jurisdictions identify in their citizen participation
kQetermining what constitutes a substantial
ements, the Citizen Participation Plan adopted by the City of
of its 2010/11 - 2014/15 Consolidated Five Year Plan
t will require a substantial amendment:
Changes inT5e use of CDBG funds from one eligible activity to another;
An activity is undertaken that was not previously included in the Consolidated
Plan or subsequent action plans.
More than 30 percent of the most recent annual federal grant allocation is
reallocated to other eligible program activities within the fiscal year.
The proposed change does not meet any of these criteria. However, the city has
determined that its significance is such that a substantial amendment is appropriate.
1
Exhibit 2
29A-15
CITIZEN PARTICIPATION
In accordance with 24 CFR 91.105(c)(3) for local governments, the substantial
amendment Public Notice was released for citizen review and comments on August 1,
2012. During the 30-day public comment period from August 1, 2012 through August
31, 2012, the Public Notice for the Draft Substantial Amendment was made available
during regular business hours between 8:00 a.m. and 5:00 p.m., Monday through
Thursday in the following locations: 1) Housing Department, 20 Civ' enter Plaza, 3rd
Floor, 2) Community Development Agency, 20 Civic Center Plaz Floor, 3) Office of
the Clerk of the Council, 20 Civic Center Plaza, Room 809, 4) ain Public Library,
26 Civic Center Plaza, Santa Ana, California and 5) on o?f e ' ite. The
Community Redevelopment and Housing Commission t ity o to Ana held a
public hearing on August 21, 2012, at 6:00 p.m., at the Council C ers, 22 Civic
Center Plaza, Santa Ana, California 92701. The Ci uncil of Santa ill hear
and vote on this Substantial Amendment to the 2 1 Actio Plan on Se ber 3,
2012. A copy of the public hearing notice is pr ed in A ment 1, along with a
summary of citizen comments received at the pu ea ' nd the remainder of the
public comment period. The city's responses to the en comments are also
included in Attachment 1.
PROPOSED ACTIVITY AMENDMENT
The city will substitute the
Attachment 2 for its existin
this new Area.
khis document as
ds will be used exclusively in
2
Exhibit 2
29A-16
ATTACHMENT 1
PROOF OF PUBLICATION 30-DAY COMMENT PERIOD & PUBLIC HEARING
& SUMMARY OF PUBLIC COMMENTS
NOTICE OF PROPOSED ACTION TO BE TAKEN BY THE CITY C
CITY OF SANTA ANA RESPECTING A PROPOSED SUBSTANT
TO THE CITY OF SANTA ANA 2010-2011 CONSOLIDATED P
NOTICE IS HEREBY GIVEN that the Community Redeve
Commission of the City of Santa Ana will conduct a pu
at 6:00 p.m. at the City Council Chambers, 22 Civic
on a proposed action approving a substantial am ent
Consolidated Plan Annual Update. On Septem , 201
City Council Chambers, the City Council will tak n
submittal of the substantial amendment to the U.S.
Development (HUD). The proposed a endment will
Area for its NSP3 grant funds.
The draft substantial amendment will
to August 31, 2012 at the following to
business hours: Housing en
Development Agency, is E
Council, 20 Civic Ce laza,
Plaza, Santa Ana, rnia.
submitted to the Hou iv'
Publish:
3
Exhibit 2
ousing
st 21, 2012
CA 92701
)1 11
;:00 p.m. at the
request to authorize
gent of Housing and Urban
the City's Target Geography
r6view from August 1, 2012
ay Wth Friday during normal
Center Plaza, 3rd Floor; Community
th Floor; Office of the Clerk of the
the Main Public Library, 26 Civic Center
on the proposed amendment must be
August 31, 2012.
ALNCIL OF THE
IFAMENDMENT
ANNUAL UPDATE
29A-17
SUMMARY OF PUBLIC COMMENTS
Exhibit 2
29A-18
ATTACHMENT 2: PROPOSED TARGET GEOGRAPHY
Exhibit 2
29A-19
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29A-20
FORECLOSED HOMES ACQUISITION PROGRAM
Introduction
The City of Santa Ana seeks to insure that its neighborhoods are attractive and well
maintained. To that end the City has applied for and received $10 million in federal
Neighborhood Stabilization Program 2 (NSP2) grant funds. These funds may only be
used for the acquisition, rehabilitation and resale of foreclosed upon residential
properties located in the city's NSP2 target area. This Foreclosed Homes Acquisition
Program (Program) was created to utilize federal HOME Program and Community
Development Block Grant Program funds to supplement the NSP funds. Similar to
NSP2, the purpose of the Program is to facilitate acquisition, rehabilitation and resale of
foreclosed and abandoned homes, and to operate in compliance with the requirements
of the NSP2 Program. Existing contracts and procedures established by the City for
implementation of its NSP2 grant will also be maintained. When necessary, and when
circumstances allow, HOME or CDBG funds allocated for this program may be used in
conjunction with NSP funds. In the event of any conflict between NSP regulations and
the City's procedures and HOME regulations, the more restrictive will prevail. With
certain exceptions called out and treated in the governing statutes, NSP funds have the
same regulatory requirements as CDBG.
Eligible Use of Funds
HOME and CDBG funds may be used to meet the costs of acquisition, rehabilitation,
soft costs and developer fees associated with these transactions.
Eligible Properties
Vacant and foreclosed residential units or parcels suitable for residential development
that are located in the target area established by the city for its NSP2 grant are eligible
for this Program. When HOME funds are used, the HOME investment per unit shall not
exceed the maximum per unit subsidy limit as periodically published by the U.S.
Department of Housing and Urban Development (HUD). Whenever HOME funds are
used, the value of the property after rehabilitation may not exceed 95 percent of the
area median purchase price for that type of housing. The after-rehabilitation value
estimate will be completed prior to investment of the HOME funds. In accordance with
NSP requirements, homes must be acquired from the foreclosing party at a minimum
discount of 1 percent off the as-is appraised value.
Eligible Homebuyers
To be eligible whenever HOME or CDBG funds are used alone or in conjunction with
NSP funds to facilitate the activity, the purchasing household must qualify as low-
income. The City will use Section 8 procedures for evaluating household compliance
with applicable HOME or CDGB income limits. Effective December 1, 2011, maximum
household incomes as adjusted for household size were as follows:
EXHIBIT 3
29A-21
Household Size Income Level Household Size Income Level
One $53,950 Five $83,250
Two $61,650 Six $89,400
Three $69,350 Seven $95,550
Four $77,050 Eight $101,750
The purchasing household need not be first time homebuyers, but may not currently
own another home, including rental property, and must intend to occupy the new home
as their principle residence. They must complete a pre-purchase homebuyer
counseling program offered by a HUD-approved homebuyer counseling agency. In
addition, they must be pre-qualified for a conventional, fixed interest rate mortgage, and
must make a minimum down payment of three percent using their own funds. Gift funds
or loan funds may not be used for this purpose. Household size may not exceed two
persons per bedroom plus one.
Sales Price
The homes will be sold at a price that is no higher than their appraised after
rehabilitation value. Homebuyers will be required to obtain a conventional first
mortgage loan, as well as a deferred payment, silent second City loan. The City loans
will have a term of 45 years and a 3 percent interest rate. The interest will be forgivable
over the 45 year life of the loan.
Occupancy and Repayment Restrictions
The Program will be operated in accordance with the recapture provisions of the HOME
Program. Program participants will be required to maintain their home as their principle
place of residence for a period of 45 years. Those who fail to do so will be found in
default of their loan agreement, and will be required to repay both the principal and any
accrued, unforgiven interest. However, and with the prior approval of the City, the loan
may be assumed if the home is sold to another income eligible household who meets
the qualifications established for the Program.
EXHIBIT 3
29A-22