HomeMy WebLinkAboutReso 73-1987RESOLUTION 73-87
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING THE SUBMITTAL OF
AN APPLICATION TO THE U.S. DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT FOR RENTAL
REHABILITATION PROGRAM GRANT FUNDS
BE IT RESOLVED by the City Council of the City of South San Francisco
that the Application to the U.S. Department of Housing and Urban Development
for Rental Rehabilitation Program Grant Funds (1987-1988) is hereby approved,
and the City Manager is authorized to submit the Application to the Department
of Housing and Urban Development, along with any additional information re-
quired and to execute all documents necessary to secure Rental Rehabilitation
Program Grant Funds.
I hereby certify that the foregoing Resolution was regularly introduced and
adopted by the City Council of the City of South San Francisco at a regular
meeting held on the 24th day of June , 19 87 by the following vote:
AYES: Councilmembers John "Jack" Drago, Richard A. Haffey, Gus Nicolopulos,
NOES:
ABSTAIN:
ABSENT:
Roberta Cerri Teglia, and Mark N. Addiego
None
None
None
City Clerk
ATTACHMENT TO RESO. NO. 73-87
CITY OF SOUTH SAN FRANCISCO
APPLICATION FOR RENTAL REHABILITATION PROGRAM
1987-88
Program Activities
a. Description of activities to be undertaken during coming year:
(1)
Contact with owners of buildings identified in past surveys
as being appropriate for rehabilitation, explaining Rental
Rehabilitation Program to them. Interested owners would be
asked to complete informational form on unit composition and
extent of desired improvements. If rehabilitation appears
feasible, given the requirements of the Rental
Rehabilitation Program, tenants would be asked to complete
survey form on household composition and income.
(2)
For buildings which meet Rental Rehabilitation Program
criteria (including those requirements regarding benefit to
low-income families and priority for family units), owners
would be invited to submit applications for Rental
Rehabilitation Program assistance.
(3)
Inspection of applicants' properties to determine code
deficiencies and Section 8 Housing Quality Standards
deficiencies.
(4)
Preparation of inspection reports, rehabilitation work
write-ups, and cost estimates. Review of contractor bids.
(5)
Processing of applications including working with owners to
arrange matching private financing.
(6)
Approval of applications covering a total of up to 20 rental
units (all of which would be for lower-income families) and
commencement of rehabilitation work.
(7) Periodic progress inspections of rehabilitation work·
(8)
Provision of up to 20 Section 8 housing vouchers to
qualified tenants·
(9)
Continuous management and monitoring of Rental
Rehabilitation Program activities.
(10)
Monitoring of property owner compliance with terms and
conditions of rental rehabilitation agreement.
b. Description of why Rental Rehabilitation Program is needed:
The City of South San Francisco proposes to carry out the Rental
Rehabilitation Program in its Downtown Target Area, which
encompasses the oldest residential units in the City. This area
of the City contains the highest percentage of low-income
residents in the City, and suffers from noticeable physical
deterioration. Surveys of this area by the City's Planning and
Building Divisions have indicated that a minimum of 117 multi-
family units and 121 single-family dwellings (a very high
proportion of which are rental units) are in need of
rehabilitation. Without the infusion of funds such as those
offered under the Rental Rehabilitation Program, coupled with the
availability of Section 8 housing vouchers for low-income
tenants, it would not be possible to rehabilitate rental housing
units in the area while still making the units affordable for
lower-income persons. More detailed information on the
characteristics of the target area and the necessity for
rehabilitation funds are contained in the following section on
Neighborhood Selection.
c. Management plan for the operation of the program:
The program would be under the general direction of the Director
of Recreation and Community Services, assisted by the City's
Community Development Consultant. A full-time Housing
Rehabilitation Specialist will carry out the day-to-day
operations of the Rental Rehabilitation Program, including
inspections, preparation of work write-ups and cost estimates,
review of contractor bids, and the processing of applications.
The City's Community Development Consultant directed a successful
housing rehabilitation program in the City of Mountain View for
three years, and before that spent eleven years as a Community
Development Representative with HUD, dealing extensively with
housing rehabilitation programs. He would be available to the
City of South San Francisco for up to 20 hours per week to assist
in the administration of the Rental Rehabilitation Programs.
The Housing Rehabilitation Specialist position will be a newly-
created position in the City which is expected to be filled by
August, 1987. The person occupying this position will be
required to have at least three to four years of responsible
experience as a rehabilitation specialist or housing inspector
and to have a certification in building inspection or
rehabilitation construction from a recognized institution or
organization.
2. Neighborhood Selection
The City proposes to carry out the Rental Rehabilitation Program in
its Downtown Target Area (see attached map), which is comprised of
Census Tract 6021 and a portion of Census Tract 6022 (Block Groups 1-
3). The Target Area, which is also the target area for the City's
Community Development Block Grant Program, consists of the Irish Town
and Pecks Lot-Hillside Terrace neighborhoods, and a portion of the
Grand neighborhood, as described in the U.S. Census Bureau's report
on Neighborhood Publication Areas.
Census Tracts 6021 and 6022 are the two lowest-income census tracts
in the City. The population of the Target area is 6,319 persons, of
which 53% meet the HUD definition of lower-income persons.
Therefore, the Target Area meets the program requirement that the
project be located in a neighborhood where the median income does not
exceed 80 per cent of the median for the Metropolitan Statistical
Area in which the City is located.
According to U.S. Census data, the Irish Town and Pecks Lot-Hillside
Terrace neighborhood~s contain a very high percentage of rental units
(637 units or 78.7 percent of the neighborhood for Irish Town and 271
or 60 percent of the neighborhood for Pecks Lot-Hillside Terrace).
The percentage of renters who are minority group members is also
substantial (48.8 percent for Irish Town and 48.4 percent for Pecks
Lot-Hillside Terrace). The rents in the Target Area are also,
according to Census data, among the lowest in the City. Only one
other census tract in the City (among a total of ten) had average
rental costs which were lower than those of the Target Area. Taking
all these factors into consideration (particularly the fact that the
Target Area has the lowest-income population of any area of the City
and the fact that the rents are substantially lower in this area than
in nearly all the rest of the City), it can be concluded that the
Target Area has a substantial number of units which are among the
most affordable in the City for lower-income families.
Also, given the preceding information and the fact that this is the
oldest residential area of the City (36 percent of the housing units
in the Irish Town and Pecks Lot-Hillside Terrace neighborhoods were
built before 1940), and the fact that there is a great need for
housing rehabilitation in the area, it is expected that rents in the
area are not likely to increase over the next five years at a rate
significantly greater than the rate of increase for the market area
as a whole.
3. Lower-Income Benefit
As was indicated in the earlier section describing proposed
activities, part of the screening process for rental rehab
applications would involve surveys of tenant incomes so that
the units in projects selected for rehab will be either vacant or
occupied by lower-income families. It will be the policy of the
City's program that all vacant units are to be offered to lower-
income households after rehabilitation and that all lower-income
families residing in units prior to rehabilitation will be offered
the opportunity to move back to their old unit after rehabilitation
or to a comparable standard unit. In all cases, the tenants would
be counseled, in cooperation with the San Mateo County Housing
Authority, to ensure that their rents were affordable, and Section 8
housing vouchers or certificates would be made available to qualified
tenants who would otherwise have to pay in excess of 30 percent of
their incomes for rent.
In the event that a project's proposed after-rehab rents would
preclude any qualified tenants from utilizing Section 8 housing
vouchers or if such proposed rents would result in other lower-income
tenants having to pay in excess of 30 percent of their incomes for
rent, the project would not be eligible for the Rental Rehabilitation
Program.
4. Use of Funds for Family Housin~
During the marketing phase of the project, a special effort will be
made to identify those units suitable for rehab which consist of two
or more bedrooms, and priority consideration will be given to those
units containing three or more bedrooms. This will be done through
the use of data maintained by the Planning and Building Divisions.
No application for the Rental Rehabilitation Program will be approved
if, as a result of the rehabilitation, less than ?0 percent of the
units in the total program will be two or more bedroom units occupied
by families. In addition, the application screening process will
identify those units occupied by families with children and such
units will be given priority consideration for rental rehab funding.
A special effort will be made to identify units consisting of three
or more bedrooms which are suitable for rehabilitation. This will be
done by using data from surveys conducted during the past year by the
Planning and Building Divisions. Particular attention will be paid
to single-family homes serving as rental units, since these units are
more likely to contain three or more bedrooms (or be able to be
converted to three bedrooms) than multi-family buildings. Marketing
of the program will then be targeted to the owners of such units. It
is estimated that 20 percent of the units to be rehabilitated will be
three or more bedrooms.
5. Priority for Substandard Units Occupied by Very Low-Income Families.
As was indicated previously, a survey of tenant incomes would be used
to identify low-income families. Using this survey information,
priority consideration would be given during the project screening
process to those units occupied by families with very-low incomes.
Selection of Proposals
Proposals will be selected in accordance with the following criteria:
ae
Percentage of units occupied before and after rehab by lower-
income tenants.
Number of two and three-bedroom units in the project with
priority consideration going to projects with three-bedroom
units.
Number of substandard units occupied by very low-income families
before rehab, with priority consideration going to such units.
The extent to which the proposal represents the efficient use of
rental rehab funds and housing vouchers. Consideration will be
given to the amount of rehabilitation work which can be
accomplished with the amount of rental rehab funds requested and
the amount of private financing necessary. Consideration will
also be given to the number and percentage of tenants in the
project who would qualify for housing vouchers. Preference will
be given to those projects which provide the greatest amount of
rehabilitation work at the lowest cost in rental rehab program
funds, and to those projects whose proposed after-rehab rents
would result in the most efficient use of housing vouchers.
The extent to which the dwelling units involved will be
adequately maintained and operated with rents at the levels
proposed. Proposals will be required to include information
regarding projected income and expenses and provisions for
maintenance of the project; this information will be analyzed in
accordance with standard underwriting procedures. All property
owners will be required to invest funds or obtain financing equal
to at least half the cost of rehabilitation, and preference will
be given to those projects which have the greatest ratio of
private financing to rental rehab funds. In any event, no
project will be approved without sufficient provision for
operating and maintenance costs after rehabilitation.
7. Financial Feasibility
In the event that property owners need additional financial
assistance to pay for that portion of the rehab work not funded with
Rental Rehab Program funds, arrangements will be made for them to
obtain financing through local lending institutions. Officers of
financial institutions will be contacted and provided with
information about the Rental Rehab Program, and the possibility of
leveraging funds will be explored with them. Property owners will be
provided with technical assistance in order to leverage private
funds. Property owners applying for private financing would be
determined eligible for loans on the basis of the financial
institution's standard underwriting criteria. Therefore, no project
would be approved for Rental Rehab Program funding unless the
financial institution determined that it was financially feasible.
~'~ 8. Neighborhood Preservation
The Target Area proposed by the City is the oldest residential area
of South San Francisco, and includes the downtown commercial area.
As was noted earlier, 36 percent of the housing units in this area
were built before 1940. Much has been done to improve the physical
character of the area in recent years, including public improvements
and publicly and privately supported rehabilitation in the downtown
commercial area, and housing rehabilitation under the CDBG program.
The most critical need for rehabilitation in the area at present is
the rehabilitation of rental housing. The Rental Rehabilitation
Program would make a significant contribution to the preservation of
the Target Area. Without the availability of such funds, rental
housing in the area would continue to deteriorate and eventually
require a much more drastic solution, such as substantially higher
rehabilitation costs or perhaps even demolition.
Schedule
a. First Quarter
October 1-31, 1987: 1)
Marketing of program with property
owners.
2) Begin intake and review of applications.
3) Initiate tenant surveys.
November-December, 1987:
1)
Conduct inspections of potential
projects.
2) Selection of applications.
3)
Prepare work write-ups and cost
estimates.
4) Arrange for financing.
b. Second Quarter
January-March, 1988: 1) Obtain bids.
2)
Commit 35 percent of Rental Rehab funds
to specific projects (for an estimated
7 units).
3) Initiate rehab construction work.
c. Third Quarter
April-June, 1988:
l)
Continue review and selection of
applications; inspections; work write-
ups and cost estimates.
2) Continuation of rehab construction work.
3)
Commit 70 percent (cumulative) of Rental
Rehab funds (an estimated 14 units).
d. Fourth Quarter
July-September, 1988:
1)
Continue review and selection of
applications; inspections; work write-
ups and cost estimates.
2) Continuation of rehab construction work.
3)
Commit 100 percent of Rental Rehab funds
(an estimated 20 units).
4)
Completion of 1st 35 percent of rehab
units (with remainder of units to be
completed in the following 6 months).
10. Need for Rental Housing Assistance
It is anticipated that the maximum number of Section 8 vouchers
available to the City will be needed to support the City's $100,000
request for Rental Rehab funds.
11. Non-discrimination and Equal Opportunity
In accordance with HUD Regulations for the Rental Rehabilitation
Program, and in furtherance of the City of South San Francisco's
commitment to non-discrimination and equal opportunity in housing,
the City has established procedures to affirmatively market units
rehabilitated under the Rental Rehabilitation Program. These
procedures are intended to further the objectives of Title VIII of
the Civil Rights Act of 1968 (which prohibits housing discrimination
on the basis of race, color, religion, sex or national origin) and
Executive Order 11063 (which directs HUD to take all action necessary
and appropriate to prevent discrimination in housing and related
facilities provided with Federal financial assistance).
These procedures are as follows:
Informing the public, potential tenants, and property owners
about Federal fair housing laws and affirmative marketing
policies.
The City of South San Francisco will inform the public, potential
tenants, and rental property owners about fair housing laws and
its affirmative marketing policies by including affirmative
marketing and fair housing information in its news releases about
the program and in brochures and informational bulletins on the
program which will be sent to owners of rental property and to
housing information resource agencies.
Requirements for owners in carrying out affirmative housing
marketing procedures.
Owners of properties rehabilitated under this program will be
required to enter into an agreement for a period of seven years
(in accordance with HUD regulations) under which they will be
obligated to carry out the following actions:
(1)
Advise the City in writing of impending vacancies as
soon as they are known to the owner (preferably 30 days
before current tenant is to vacate).
(2)
Notify the San Mateo County Housing Authority and local
fair housing and appropriate community service agencies
(to be identified by City) of the availability of units
to be vacated as soon as possible after impending
vacancy is known to owner.
(3)
If advertising is to be done in the general news media,
that such advertising be delayed until after the above
agencies have been notified of the vacancies and have
had an opportunity to make referrals to the owner. Any
advertisements for rental units will identify them as
equal housing opportunity units.
(4)
Advise the City in writing of the results of their
affirmative marketing efforts.
c. Special Outreach
Special outreach efforts will be made to ensure that members of
all minority groups are informed of the availability of any units
assisted under the Rental Rehab Program. This will be done by
utilizing the City's fair housing agency (Operation Sentinel),
and the County Housing Authority, as well as other community
service agencies which provide information to lower-income
minority group members regarding the availability of housing. As
was noted above, owners will be required to notify these agencies
about impending vacancies before advertising the units to the
general public.
d. Recordkeeping
The City will require that owners keep the following records:
(1)
Documentation of notification to Housing Authority and
fair housing and community service agencies regarding
vacancies, including the dates of such notifications.
(2)
Copies of any newspaper advertisements, including date
of advertisement, regarding vacancies.
(3) ~Data on race/ethnicity of tenants who apply for and move
into vacant units.
e. Assessment and Corrective Actions.
The affirmative marketing efforts of property owners will be
assessed as follows:
(1)
To determine if good faith efforts have been made, the
City will examine the records maintained by the owners
and compare them with the actions which the owners were
required to take. If it is determined that the required
actions have been carried out as specified, it will be
assumed that the owners have made good faith efforts to
carry out the affirmative marketing procedures.
(2)
To determine the results of the owners' affirmative
marketing efforts, the City will assess whether or not
minority group members from the variety of racial and ethnic
groups in the City have, in fact, applied for and/or become
tenants of the rehabilitated units. If it is found that a
variety of groups is represented, it will be assumed that
the procedures were effective. If such groups are not
represented, the City will review the procedures to
determine what changes, if any, might be made to make the
affirmative marketing efforts more effective.
The City will take corrective actions if it is found that property
owners fail to carry out the procedures required of them. If, after
discussing with owners ways to improve procedures, the owners
continue to fail to meet the affirmative marketing requirements, the
City will consider disqualifying an owner from future participation
in the Rental Rehabilitation Program.
The City will carry out assessment activities and complete a written
assessment of affirmative marketing efforts in time to report results
in the annual performance report to HUD.
12. Organizational Structure
City of South San Francisco
Department of Recreation and Community Services
P.O. Box 711
South San Francisco, CA 94080
Lyle W. Norton
Director of Recreation and Community Services
The manner in which the City will be administering the program is
described in the preceding No.lc (Management Plan). The City has
currently allocated $142,500 in 1987-88 CDBG funds for housing
rehabilitation, a portion of which will be used to the extent
necessary to pay for administration of the Rental Rehab Program.
13. Public Housing Authority Participation
Attached is a letter from the Executive Director of the San Mateo
County Housing Authority stating the Housing Authority's willingness
to participate in the program and to provide housing vouchers in
support of the program.
The Housing Authority contact person regarding the Rental
Rehabilitation Program is:
Mr. Maurice Dawson
Executive Director
San Mateo County Housing Authority
456 Peninsula Avenue
San Mateo, CA 94401
Telephone: (415) 348-4251
14. Need for Rental Rehabilitation Funds
The City is requesting $100,000 in Rental Rehabilitation grant funds,
in order to rehabilitate an estimated 20 units.
15. Recent Past Rehabilitation Activities
The City of South San Francisco participated as part of the San Mateo
Urban County housing rehabilitation program in the 1984-85 CDBG
program year. In 1985-86, South San Francisco was a CDBG entitlement
city, but contracted with San Mateo County for the administration of
its housing rehabilitation program. In 1986-87, the City of South
San Francisco began operating its own housing rehabilitation program.
Rehabilitation activities during the last three years include the
following:
..... 1986-87:
a. Single Family Owner-Occupied Units
15 applications received.
Inspections completed on 5 units; preliminary inspections
made on 2 additional units.
Bids received on 2 units and loan applications now in
processing.
$95,000 in CDBG funds allocated for rehabilitation, all of
which is expected to be utilized on units already inspected.
b. Rental Units
Survey of rehabilitation needs in Downtown Target Area
completed (see the preceding Nc.lb on Rehabilitation Needs
for survey results).
Applications received for 8 units and preliminary
inspections completed on all these units.
- Negotiations ongoing with owners of 9 additional units.
1985-86:
2 single-family owner-occupied units rehabilitated
($61,500 in South San Francisco CDBG funds)
2 2-bedroom rental units rehabilitated
($19,000 in South San Francisco CDBG funds;
$24,000 in San Mateo County Rental Rehabilitation funds;
$30,000 in private funds)
1 1-bedroom; 3 2-bedroom rental units rehabilitated
($12,000 in San Mateo County Rental Rehab funds;
$14,000 in private funds)
2 2-bedroom; 2 3-bedroom rental units rehabilitated
($30,000 in San Mateo County Rental Rehab funds;
$30,000 in private funds)
1984-85:
7 single-family owner-occupied units rehabilitated
($152,900 in San Mateo County CDBG funds)
HOUSING REHABILITATION TARGET AREA
RA
· Tenant Assistance Policy
It is the policy of the City of South San Francisco to minimize
displacement under the Rental Rehabilitation Program. In keeping with
this policy, no proposal for a rental rehabilitation project will be
selected if it is anticipated that the project would result in the
displacement of any tenant, unless such displacement is essential in
order to achieve the objectives of the Rental Rehabilitation Program and
unless any tenant so displaced is offered a decent, safe, and sanitary
replacement dwelling unit at an affordable rent.
In the event that displacement of a tenant becomes necessary, the City
will adhere to the following procedures:
1. Non-Discrimination
The City will not discriminate in providing information, counseling,
referrals or other relocation services to persons displaced by rental
rehabilitation activities.
The City will administer the Rental Rehabilitation Program in such as
manner as to ensure, to the maximum degree feasible, that persons
will not be displaced because of their particular race, color,
religion, sex, age, handicap or national origin. In keeping with
this policy, all property owners receiving financial assistance under
the Rental Rehabilitation Program will be required to enter into a
non-discrimination agreement. If it appears that owners propose to
displace tenants for discriminatory reasons, appropriate action will
be taken.
2. Information and Counseling
Information and counseling will be provided to familiarize tenants to
be displaced with:
Opportunities to select replacement dwellings from a full range
of neighborhoods within the total housing market.
b. Individual rights under Federal Fair Housing law.
c. Methods of searching for suitable replacement housing.
3. Relocation Benefits
Persons eligible for housing vouchers would be assisted with
vouchers provided under the Rental Rehabilitation Program,
subject to the availability of such vouchers. Otherwise,
assistance for eligible persons will be sought from the San Mateo
County Housing Authority under its regular housing assistance
programs.
For persons not eligible to receive assistance from the Housing
Authority, relocation benefits would be provided in the same
amount and for the same time period as provided to displacees
under Federal relocation law.
c. Moving expenses would be paid for all displaced tenants.
4. Source of Relocation Funds
Funds for relocation payments would be obtained from the City's
Rental Rehabilitation Program grant and would be charged as a part of
the rehabilitation cost of each applicable project.
HOUSINO AUTHOR, FY
OF THE COUNTY OF SAN MATEO
--'--.456 PENINSULA AVENUE · SAN MATEO; C'ALIFORNIA 94401 · TELEPHONE (415) 348-4251
XECUTIVE ~tRECTOR
HAURICE: DAWSON
July 22, 1986
Mr. C. Walter Birkelo
City Manager
City of South San Francisco
P.O. Box 711
South San Francisco, CA 94080
Dear Mr. Birkelo:
Subject: Rental Rehabilitation 'Program
The Board of Commissioners of the Housing Authority of the San
Mateo County has authorized me, as Executive Director, to take
the necessary steps to implemen~ the U.S. Department of'Housing
and Urban Development's Rental Rehabilitation Program pursuant
to 24 CFR part 511. ·
If your application for Rental Rehabilitation Program funds is
approved by H.U.D., the Housing Authority will assure.that
Section 8 existing certification and vouchers are provided to
eligible tenants. In addition, we are prepared to sign the
.required Memorandum of Agreement.
We look forward to working with your City in the implementation
of this program. If I can be of further assistance, please do
not hesitate to contact me.
Maurice Dawson,
Executive Director
CC:
Mr. Lyle W. Norton
Director of Recreation and Community Services
City of South San Francisco