CC - Item 2A Proposed Reallocation Of FY 2000 Home Funds And FY 2000 And 2001 Community Housing Development Organization Set-Aside`fib ?
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER
DATE: MAY 20, 2002
SUBJECT' PUBLIC HEARING REGARDING PROPOSED REALLOCATION OF FY 2000
HOME FUNDS AND FY 2000 AND 2001 COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION (CHDO) SET-ASIDE
In Fiscal Year 1996, the City of Rosemead became an entitlement jurisdiction for HOME
funds. HOME funds are federal funds restricted to the creation of affordable housing.
Under this program, the City is entitled to a formula share of HOME funds. The City's
annual, allocation is a little over $500,000 per year. Of the total amount, 15% must be
set aside for Community Development Housing Organizations (CHDO's). Since 1996,
the City was successful in using HOME funds in the acquisition and construction of the
Garvey senior housing development. However, beginning in 1999, the City has had
difficulty in finding eligible projects in which to expend the funds. The City has also been
unable to use its CHDO funds since the beginning of the program, since there is no
CHDO within the City of Rosemead and outreach efforts to qualified organizations have
been unsuccessful.
HOME funds are highly restrictive and, in addition, must be obligated for expenditure
within twenty-four (24) months of receipt of funds or they are subject to recapture,by the
federal government. The. City had earmarked HOME funds for low interest rehabilitation
loans to families, but because of federal restrictions on the funds, it has not been
successful in this use of funds. The City has created a new Mortgage Assistance
COUNCIL AGENDA
MAY 2 3 2002
ITEM No.
Program (MAP) using HOME funds that began in FY 2001-2002. Although it is
anticipated that, over time, this program will be successful in using HOME funds and in
promoting home ownership throughout the community, it is anticipated that it will not
fully meet the. obligation deadline for use of funds by July 2002. In addition, due to the
continuing lack of a practicing CHDO in the community, the CHDO funds for FY 2000
and 2001 will remain unobligated. The total amount of at-risk funding in the short term is
$262,800 in entitlement and $159,300 in CHDO reserve.
Staff has met with representatives of the U.S. Department of Housing and Urban
Development (HUD) in order to discuss fund obligation and expenditure. In that
meeting, HUD staff stated that there was no statutory requirement that HOME funds be
spent within the jurisdiction and further stated that the City had the opportunity to
partner with other communities in order to use these funds. HUD further stated that the
City could partner for both entitlement funds, as well as CHDO set-aside funds.
Staff believes that partnering with other communities for use of these funds, especially
for CHDO funds, will allow the City to meet its short-term obligation deadlines to HUD,
allow the City to use the funds for regional needs and allow the City the flexibility of
retaining future funds for projects the City may want to undertake. Staff recommends
that the City Council approve a reallocation of at-risk funds to obligate to a neighboring
community for use in meeting regional housing needs.
RECOMMENDATION
1. That the City Council approve a reallocation in the amount of $262,800 in entitlement
funds and $159,300 in unallocated HOME funds to create a partnership with a
neighboring community;
2. Open a 30-day comment period for public comments related to the proposed
reallocation and
3. Bring back to the City Council for approval during the 30-day period a proposed
partnership agreement with a neighboring jurisdiction.
Reallocation of HOME funds, 2
APPROVAL OF MINUTES: -MARCH 26, 2002 REGULAR MEETING
Councilman Taylor requested that the Minutes of March 26, 2002, be deferred to the next
meeting.
1. ORAL COMMUNICATIONS FROM THE AUDIENCE - None
II. PUBLIC HEARINGS
An explanation of the procedures for the conduct of the public hearing was presented by
the City Attorney.
Ik PUBLIC HEARING REGARDING PROPOSED REALLOCATION OF FY
2000 HOME FUNDS AND FY 2000 AND 2001 COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION (CHDO) SET-ASIDE
Frank Tripepi, City Manager, presented the staff report.
The Mayor Pro Tern opened the public hearing for those in the audience wishing to speak
on this item. There being no one wishing to speak, the Mayor closed the public hearing.
MOTION BY COUNCILMAN IMPERIAL, SECOND BY COUNCILMEMBER
CLARK that the Council approve a reallocation in the amount of $262,800 in entitlements funds
and $159,300 in unallocated HOME funds to create a partnership with a neighboring community;
open a 30-day comment for public comments related to the proposed reallocation; and bring back
to the City Council for approval during the 30-day period a proposed partnership agreement with
a neighboring jurisdiction. Vote resulted:
Yes:
Taylor, Vasquez, Clark, Imperial
No:
None
Absent:
Bruesch
Abstain:
None
he Mayor Pro Tern declared said motion duly carried and so ordered.
III. LEGISLATIVE
A. RESOLUTION NO. 2002-23 - CLAIMS AND DEMANDS
The following Resolution was presented to the Council for adoption.
RESOLUTION NO. 2002-23
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