CC - Item 4C - Housing Development Certain Home Funded ProgramsE. M f • 0
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ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: ANDREW C. LAZZARETTO, CITY MANAGE Kj~_
DATE: MAY 8, 2007
SUBJECT: REVIEW AND APPROVAL OF CONTRACT WITH ROSEMEAD HOUSING
DEVELOPMENT CORPORATION FOR IMPLEMENTATION OF CERTAIN
HOME FUNDED PROGRAMS
SUMMARY
The City is required to commit its HOME funds for particular affordable housing activities
within 24 months after HUD's appropriation of the entitlement allocation. To comply with
this requirement, staff recommends that the City commit $2,281,175 of HOME funds by
contracting with the Rosemead Housing Development Corporation (RHDC) to administer
certain HOME funded programs.
Staff Recommendation
Staff recommends that the City Council take the following actions:
Approve a contract with the Rosemead Housing Development Corporation for the
implementation of:
• Residential Rehabilitation Program - $200,000,
• Mortgage Assistance Program - $150,000,
• Garvey Housing Revitalization Project - $1,959,456, and
• Tenant-Based Rental Assistance (TBRA) Program - $511,719; and
2. Authorize the Mayor to execute the contract on behalf of the City.
ANALYSIS
The City is required to commit 90% of its annual HOME allocation for particular affordable
housing activities within 24 months after HUD's appropriation of the entitlement allocation;
the balance of the allocation (10%) is to be used for administrative services and is not
required to be committed. Since FY 2002-03, the City has not met the commitment
requirement. Currently, the City must commit at least $1,513,846 by July 31, 2007.
APPROVED FOR CITY COUNCIL AGENDA:
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City Council Meeting
May 8, 2007
Page 2 of 2
To comply with this requirement, staff recommends that the City contract with RHDC to
administer the HOME funded Residential Rehabilitation Program, Mortgage Assistance
Program, and the Garvey Housing Revitalization Project. By contracting with RHDC for the
implementation of these particular programs, the City's HOME funds would be committed
and the City would avoid the risk of losing the funds. City staff would still implement the
programs.
Previously on July 11, 2006, the City Council approved and adopted the HOME funded
Tenant-Based Rental Assistance Program (TBRA), and selected to contract with the RHDC
to provide TBRA program on behalf of the City. RHDC has not approved the item and a
contract has not been executed for this arrangement.
The funding amounts for these HOME funded programs are as follows:
Mortgage Assistance Program $150,000
Residential Rehabilitation Program: 0% and 3% Deferred Loans $200,000
Garvey Housing Revitalization Project $1,959,456
Tenant-Based Rental Assistance Program $511,719
$2,821,175
The total committed amount would exceed the minimum amount required by July 2007
Attached to this report is a proposed contract with RHDC for the implementation of the
above-mentioned programs.
LEGAL REVIEW
City Attorney has reviewed and approved the contract as to form.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
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Jesse Duff
Community Development Director
Prepared by:
Eileen Cheng
Economic Development Administrator
Attachment A: Proposed Contract
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ATTACHMENT "A"
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CITY OF ROSEMEAD AND
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
HOME FUNDS COMMITMENT AGREEMENT
FOR IMPLEMENTATION OF CERTAIN PROGRAMS
THIS HOME FUNDS COMMITMENT AGREEMENT (this "Agreement") is
entered into as of May 8, 2007, by and between the CITY OF ROSEMEAD, a municipal
corporation (hereinafter referred to as the "City"), and ROSEMEAD HOUSING
DEVELOPMENT CORPORATION, a California non-profit corporation (hereinafter referred
to as "RHDC").
RECITALS:
A. Pursuant to the HOME Investment Partnerships Act, the Department of
Housing and Urban Development ("HUD") has allocated regular HOME funds to the City for
the purpose of expanding the City's supply of decent, safe, sanitary and affordable housing
for very low and low income families.
B. The City receives annual HOME allocation from HUD and desires to commit a
portion of its HOME funds for implementation of certain HOME funded programs providing
affordable housing opportunities.
C. The City desires to commit $2,821,175 of its HOME funds to RHDC and
RHDC desires to accept such commitment of funds for the implementation of the City's
Residential Rehabilitation Program, Mortgage Assistance Program, Garvey Housing
Revitalization Project, and the Tenant-Based Rental Assistance Program (TBRA)
(collectively "Programs").
NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS:
Section 1. Purpose of this Agreement
The City and RHDC desire to enter into this Agreement to acknowledge the above recitals
and to provide for the commitment of a portion of its HOME funds by the City to RHDC and
the acceptance of such commitment by RHDC.
Section 2. Commitment of Funds
Subject to the terms of this Agreement, the City agrees to provide to RHDC and RHDC
agrees to accept from the City regular HOME funds, totaling $2,821,175, forthe Programs:
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Mortgage Assistance Program $150,000
Residential Rehabilitation Program: 0% and 3% Deferred Loans $200,000
Garvey Housing Revitalization Project $1,959,456
Tenant-Based Rental Assistance Program $511,719
$2,821,175
Section 3. Expenditure of Funds
RHDC agrees to expend the funds received pursuant to Section 2 for the purpose of
increasing, improving, or preserving affordable housing in the City by providing the
Programs in full compliance with the requirements of the HOME Investment Partnerships
Act (at title 11 of the Cranston-Gonzalez National Affordable Housing Act, as amended, 42
U.S.C. 12701 et seq.) and HUD Regulations (at 24 CFR Part 92), as now in effect and as
may be amended from time to time, and all other applicable laws and regulations, including
without limitation, the Davis-Bacon Act (40 U.S.C. 276a-276a-5), the Contract Work Hours
and Safety Standards Act (40 U.S.C. 327-332), the Federal requirements set forth in 24
CFR part 5, subpart A, applicable provisions of title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d-2000d-4), the Fair Housing Act (42 U.S. C. 3601 et seq.), E.O. 11063 (3
CFR, 1959-1963 Comp., p 652) and HUD regulations issued pursuant thereto. RHDC
agrees to expend at least the stated amount of funds by the following dates:
$435,299
by July 31, 2008
$511,719
by July 31, 2009
$492,128
by July 31, 2010
$463,696
by July 31, 2011
$461,002
by July 31, 2012
$2,363,844
Section 4. Nonliability of Officials and Employees
No City Councilmember, RHDC board member, arid no official, 'agent, or employee of the
City or RHDC shall be personally liable to the other parties, or any successor in interest, in
the event of any default or breach by RHDC or the City, or for any amount which may
become due to the City or RHDC, or successor, or on any obligations under the terms of
this Agreement.
Section 5. Obligation to Refrain from Discrimination
RHDC covenants and agrees for itself, its successors and assigns that there shall be no
discrimination against or segregation of any person, or group of persons, on account of
race, color, creed, religion, marital status, sex, age, national origin or ancestry in the sale,
lease, sublease, transfer, use, occupancy, tenure or enjoyment of the lands, rights-of-way
or improvements financed pursuant to this Agreement, nor shall RHDC, or any person
claiming under or through it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number use or
occupancy of tenants, lessees, subtenants, sublessees, or vendees of the lands, rights-of-
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way or improvements. RHDC shall refrain from restricting the rental, sale, or lease of the
lands, rights-of-way or improvements on the basis of race, color, creed, religion, marital
status, age, sex, national origin, or ancestry of any person. All such deeds, leases or
contracts for the sale, lease, sublease or other transfer of the rights-of-way, lands or
improvements shall contain or.be subject to substantially the following nondiscrimination or
nonsegregation clauses:
A. In deeds: "The grantee herein covenants by and for itself, its successors
and assigns, and all persons claiming under or through them, that there shall
be no discrimination against or segregation of, any person or group of
persons on account of race, color, creed, religion, sex, marital status, age,
national origin, or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the land herein conveyed, nor shall the
grantee itself or any persons claiming under or through it, establish or permit
any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees on the land herein conveyed. The
foregoing covenants shall run with the land."
B. In leases: "The lessee herein covenants by and for itself, its successors and
assigns, and all persons claiming under or through them, and this lease is
made and accepted upon and subject to the following conditions: That there
shall be no discrimination against or segregation of any person or group of
persons, on account of race, color, creed, religion, marital status, age, sex,
national origin, or ancestry, in the leasing, subleasing, transferring, use,
occupancy, tenure or enjoyment of the land herein leased nor shall the
lessee itself, or any person claiming under or through it, establish or permit
such practice or practices of discrimination or segregation with reference to
the selection, location, number, use or occupancy of tenants, lessees,
sublessees, subtenants, or vendees on. the land herein leased."
Section 6. Future Cooperation
The parties hereto agree to take all appropriate steps and execute any documents which
may reasonably be necessary or convenient to implement the intent of this Agreement.
Section 7. Supersedes Prior Agreement
This Agreement supersedes all prior agreements or understandings between the City and
RHDC regarding the subject matter of this Agreement.
Section 8. Records
Each party shall maintain books and records regarding its duties pursuant to this
Agreement. Such books and records shall be available for inspection by the officers and
agents of the other party at all reasonable times.
Section 9. Law Governing
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This Agreement is made in the State of California under the constitution and laws of the
State of California, and is to be so construed.
Section 10. Amendments
This Agreement may be amended at any time, and from time to time, by an agreement
executed by both parties to this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.
CITY OF ROSEMEAD
BY:
John Tran
Mayor
Attest:
BY:
Nina Castruita
City Clerk
Approved as to Form:
BY:
Bonifacio Garcia
City Attorney
ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
BY:
John Tran
Chairman
Attest:
BY:
Nina Castruita
Secretary
Approved as to Form:
BY:
Bonifacio Garcia
Corporation Attorney
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