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Resolution 11949CITY OF ALAMEDA RESOLUTION NO. 11949 AUTHORIZING APPLICATION FOR FISCAL YEAR 1990 -91 RENTAL REHABILITATION GRANT FUNDS AND AUTHORIZING EXECUTION OF CERTIFICATIONS AND GRANT AGREEMENT WHEREAS, the City of Alameda has determined that there is a need within the City for assistance in the preservation and rehabilitation of existing rental housing units; and WHEREAS, the City of Alameda is an eligible applicant for Rental Rehabilitation Grant Funds as authorized by Section 17 of the Housing Act of 1937 as amended; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Alameda does hereby certify the following: 1. The submission of this Program Description is authorized under State and local law, and the grantee possesses the legal authority to carry out the Rental Rehabilitation Program described herein, in accordance with 24 CFR Part 511; 2. The City's Rental Rehabilitation Program was developed after consultation with the public and its description of program activities in the "Program Activities" section of this Program Description has been made available to the public; 3. The City's lower income benefit standard is hereby reduced to 70 percent as provided by 24 CFR 511.10 (h)(2). The discussion of lower income benefit in this Program Description contains a specific explanation of the reasons why this reduced benefit in this Program Description is necessary, which explanation complies with 24 CFR 511.10 (a)(2); 4. The City of Alameda has adopted a policy conforming to the requirement of 24 CFR policy will be made available to the public on 5. The City of Alameda will conduct Rehabilitation Program in conformity with the 511.10 (m); and 6. The City of Alameda will conduct Rehabilitation Program in accordance with the Part 511. written tenant assistance 511.10 (a)(2), and such request. and administer its Rental requirements of 24 CFR and administer its Rental requirements of 24 CFR 7. The City of Alameda will provide a drug -free workplace by: (a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; (b) Establishing a drug -free awareness program to inform employees about - (1) The dangers of drug abuse in the workplace; (2) The grantee's policy of maintaining a drug -free workplace; (3) Any available drug counseling, rehabilitation, and employee assistance programs; and (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; (c) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (a); (d) Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will - (1) Abide by the terms of the statement; and (2) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; (e) Notifying the U.S. Department of Housing and Urban Development within ten days after receiving notice under subparagraph (d) (2) from an employee or otherwise receiving actual notice of such conviction; (f) Taking one of the following actions, within 30 days of receiving notice under subparagraph (d) (2), with respect to any employee who is so convicted - (1) Taking appropriate personnel action against such an employee, up to and including termination; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (g) Making good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs (a), (b), (c), (d), (e) and (f). (h) The City further certifies that, if it is subsequently determined that additional sites will be used for the performance of work under the grant, it shall notify the U.S. Department of Housing and Urban Development immediately upon the decision to use such additional sites by submitting a revised "Place of Performance" form. 8. The City of Alameda will conduct and administer its Rental Rehabilitation Program in accordance with the requirements of 24 CFR Part 87 which prohibit the use of Federal funds in lobbying any and all Federal officials and employees in connection with the award of any Federal contract, grant or loan and which further require completion of a "Disclosure Form to Report Lobbying" should the City use non - Federal funds for such purpose. BE IT FURTHER RESOLVED, that the City Council of the City of Alameda does hereby authorize the City Manager to execute the certifications, the Rental Rehabilitation Grant Agreement for FY 90 -91, related documents and amendments. I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in regular meeting assembled on the 17th.. of April, 1990, by the following vote to wit: AYES: Councilnbers Camicia, Withrow and Acting President Arnerich 3. NOES: None. ABSENT: Councillnember Thomas and President Corica - 2. ABSTENTIONS: None. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal to said City this 18th day o: =-- irJ 1990. 7 City - Ci!erk of the City of Alameda CITY OF ALAMEDA RENTAL REHABILITATION PROGRAM DESCRIPTION PROGRAM ACTIVITIES During the 90 -91 fiscal year, the City of Alameda proposes to implement a program which will result in the rehabilitation of approximately six substandard rental units occupied by low- and moderate - income households. Eligible rehabilitation activities may include one or more of the following: Correction of substandard conditions; Essential improvements, including energy - related repairs 'and improvements to permit the use of rehabilitated projects by handicapped persons; Repair of major housing systems in danger of failure; and Other costs associated with the rehabilitation or rehabilitation financing. NEIGHBORHOOD SELECTION The map included as Attachment A to this Program Description delineates the boundaries of neighborhoods deemed eligible for participation in this Program. This determination has been made on the basis of 1980 census data provided by the U.S. Bureau of the Census which demonstrates that a majority of the households in the selected neighborhoods have incomes at or below 80 percent of the median for the Metropolitan Statistical Area. Each of the selected neighborhoods has a high concentration of rental property. At the time of the 1980 census, the selected neighborhoods had generally lower rental housing costs compared to other locations in the City. Further evidence of this trend is provided through an analysis of properties rented by Section 8 Existing Program certificate holders. Alameda's experience during its two years of participation in the Rental Rehabilitation Demonstration Program has been that the selected neighborhoods are the most likely to be affordable to lower income families in an extremely tight rental market. Although most of the City's rehabilitation activity has been focused in these neighborhoods for a number of years, there does not appear to be any significant gentrification; conversely, the continuing availability of rental units at Fair Market Rent levels appears to support the assumption that rents are not likely to increase at a rate substantially greater than the projected increase rate for the market area. LOWER INCOME BENEFIT Due to the housing patterns in the City of Alameda, it will be necessary to reduce the benefit standard to 70 percent. Because of the restrictive rental market conditions, many individuals who have obtained affordable housing elect to remain in their units, often in spite of substandard conditions and /or increases in personal income. As a Page 1 result, few buildings are occupied solely by lower- income households, and a program that meets the 100 percent benefit standard could not be developed. In addition, this provision will minimize the displacement of tenants in projects to be rehabilitated and it will provide a reasonable margin for error due to unforeseen, sudden changes in neighborhood rents The public has been consulted regarding this benefit standard reduction. The standard eligibility procedure used by the Housing Authority will be followed to ensure tenant eligibility for the Program. USE OF GRANT FUNDS FOR FAMILY HOUSING Alameda's housing stock includes 15,934 rental units. Because any of these units are small apartments carved out of larger structures during World War II, rental units for larger families are in scarce supply. Citywide, only 55 percent of the rental units have two or more bedrooms. In the neighborhoods selected for participation in the Rental Rehabilitation Program, this figure ranges from 37 percent to 63 percent, with the majority of the neighborhoods hovering just below 50 percent. Because of the scarcity of larger units, rental costs also tend to be higher, even in those neighborhoods where rents are generally affordable to low- and moderate- income families. In view of these figures, the City proposes to use at least 70 percent of the rental rehabilitation grant funds to rehabilitate units containing two or more bedrooms and occupied prior to rehabilitation by larger low- income families. Applications by owners for participation in the Program will contain tenant eligibility information, including income, family size and condition and size of each unit to be rehabilitated. In evaluating applications for participation, priority status shall be given to units containing three or more bedrooms. All other project features being equal, the size of the unit and of the household occupying the unit shall be a major determinant in the selection of units to be funded with grant funds. USE OF GRANT FUNDS FOR SUBSTANDARD UNITS OCCUPIED BY VERY LOW- INCOME FAMILIES Priority will be given to rehabilitating projects containing units with substandard conditions that are occupied by very low- income families before rehabilitation. Applications by owners for participation in the Program will contain tenant eligibility information, including income, family size and condition of each unit to be rehabilitated. In evaluating applications for participation, priority shall be given to units which are occupied by very low- income families. SELECTION OF PROPOSALS Applications for participation in the Program will be sought until such time as it is determined that an adequate number of proposals have been received. This process may be repeated if, after initial screening of the applications, it is determined that Program regulations cannot be met. Applications for participation in the Program will include the following items: Page 2 Property Data including name, address and contact number of the owner; and current rents; Tenant Application Form, or other suitable form completed by householder of each unit to be rehabilitated with Grant funds; Section 8 Housing Quality Standards Checklist for each unit to be rehabilitated and for common areas; Proposed Work Program, Time Frame and Cost Estimate; and Proposed private financing options for matching funds. The initial screening of the applications will consist of a review by the Loan Panel composed of staff from the City of Alameda Community Development Department and the City's Finance Director. Such review will be conducted to determine that projects meet the following minimum standards: The applicant is the owner of record or the duly authorized agent of the owner of record and has at least 20 percent equity in the property proposed for rehabilitation; The property is located in a neighborhood where the majority of the households have incomes at or below 80 percent of the median for the Area, as shown on the Project Area map; At the time of application, at least 70 percent of the units are occupied by lower income families; and At the time of application, rents are at or below the Fair Market Rent level as established by the Department of Housing and Urban Development; and The scope of the work shall not exceed the resources available. Projects determined to meet the minimum standards for participation will be ranked by the panel, with priority given to projects which: Are owner occupied buildings; Are owned by individuals who own no more than four units; Have the highest proportion of units over 70 percent that are occupied by lower - income families; Have a higher proportion of very low- income families living in substandard conditions; and /or Have a higher proportion of lower - income large families residing in units consisting of three or more bedrooms; Appear to be capable of maintaining rents at affordable levels beyond initial occupancy of the unit after rehabilitation; Page 3 Appear to have a positive impact on the surrounding neighborhood, as determined by a windshield survey of the property. Top- ranked applicants will be invited to meet with Program staff to formalize the terms of the project. Included in the terms of the project shall be a requirement that the owner maintain the property in compliance with HUD, California and City standards for safe, decent, sanitary and habitable housing. FINANCIAL FEASIBILITY Program delivery costs associated with the Rental Rehabilitation Grant Program will be covered by the City's Community Development Block Grant program, 10% of the 1989/90 Rental Rehab grant allocation ($5,400), and the Housing Authority's Annual Contributions Contract Administrative Fees. Program guidelines for the Rental Rehabilitation Grant Program require that at least 50 percent of the financing for the proposed rehabilitation come from private sources. Owners are required to indicate private financing options at the time application for participation in the Program is made. During the Rental Rehabilitation Demonstration Program, the City provided local lenders with information regarding the Program. Similar outreach activities continue to familiarize local lenders with the goals of the Rental Rehabilitation Grant Program. NEIGHBORHOOD PRESERVATION Because of the limited amount of funds available to the City for rehabilitation loans, the impact of the Program on neighborhood preservation will be minimal. However, to the extent that the Program activity will conserve and improve the City's rental housing stock, it is anticipated that the Program will have a positive impact on neighborhood preservation in the City. SCHEDULE FOR COMMITTING RENTAL REHABILITATION GRANT AMOUNTS Rental Rehabilitation Grant funds will be committed according to the following schedule: 1st Quarter Invite applications Screen and rank applications Select properties 2nd Quarter Negotiate loan terms and execute loan agreements If applicable, prepare drawings and bid documents If applicable, advertise and receive bids Obtain permits Start construction Commit 30% of Funds Page 4 3rd Quarter Complete construction If Grant funds remain, invite additional applications and repeat process as described in the 1st and 2nd Quarter schedule Commit 60% of Funds 4th Quarter Commit 100% of Funds NON - DISCRIMINATION AND EQUAL OPPORTUNITY A. Methods for Informing the Public, Owners and Potential Tenants About Federal Fair Housing Laws and the City's Affirmative Marketing Policy The City of Alameda shall inform the public and potential tenants of its affirmative marketing policy by including the Equal Housing Opportunity logos in any newspaper or media announcements regarding the program. A description of applicable fair housing laws shall be included in information provided to owners and tenants. B. Requirements and Actions Re: Affirmative Marketing to be Carried Out By Property Owners Owners will be required to use the affirmatively market vacant units: Place advertisements in commercial media, Times -Star, the Alameda Journal and /or the applicants for vacant units; and Notify the Alameda Housing Authority of the availability of vacant units. following methods to such as the Alameda Oakland Tribune, for All public advertisements and solicitations for applicants of vacant units shall use the Equal Housing Opportunity logotype or slogan. Projects with more than 5 units shall also be required to display a fair housing poster at the project site. C. Special Outreach Efforts Due to the tight rental market in the City of Alameda, the local Housing Authority has lists of eligible applicants waiting for housing assistance. The Housing Authority's list of over 1,000 applicants includes persons of all racial /ethnic backgrounds. D. Affirmative Marketing Recordkeeping and Assessment The City shall keep a file containing copies of all documents and public notices issued regarding the Program. Owners will be required to maintain a similar file documenting advertisements and other forms of notification and the use of the Equal Housing Opportunity logotype therein. Page 5 The City shall maintain racial, ethnic and gender characteristics of tenants in rehabilitated units, and relocation data for displaced households. The City's annual review of rental rehabilitation projects will assess performance based on the information identified above. Where it appears that the owner has failed to affirmatively market vacant units in the manner prescribed, the City shall notify the owner in writing of this finding and require that the owner present a written plan to affirmatively market vacant units in the future. As a condition of the loan award, owners shall be required to certify that they will affirmatively market units in rehabilitated projects through the provision of information regarding the availability of units that are vacant after rehabilitation or that later become vacant and that they will comply with the terms of this section of the Program procedures for a period of seven years beginning on the date on which all the units in the project are completed. GRANTEE'S ORGANIZATIONAL STRUCTURE The Rental Rehabilitation Grant Program will be operated by the City of Alameda Community Development Department, Alameda City Hall, Room 103 Oak Street at Santa Clara. For additional information, contact Peter Ekstein. PUBLIC HOUSING AUTHORITY PARTICIPATION The Alameda Housing Authority has agreed to participate in the Rental Rehabilitation Program and to provide Section 8 Certificates and /or Vouchers in support of the City's Rental Rehabilitation Program. A Memorandum of Understanding regarding the roles and responsibilities of the City and the Housing Authority will be executed prior to commitment of funds to any private party. The activities of the Alameda Housing Authority relative to the administration of the Rental Rehabilitation Grant Program will be managed by Louise VandeVeere, Director of Housing Programs, Alameda Housing Authority, 1916 Webster Street, Alameda, 94501, (415)522 -8422. PER DWELLING UNIT GRANT AMOUNTS The City has the following limits for grant award per unit: $5,000 for zero berdroom units, $6,500 for one - bedroom units, $7,500 for two- bedroom units and $8,500 for three - bedroom or larger units. Descr157Jan 89 Revised 3/15/90 Page 6 PLACE OF PERFORMANCE FOR CERTIFICATION REGARDING DRUG -FREE WORKPLACE REQUIREMENTS Name of Grantee: City of Alameda Grant Program Name: Rental Rehabilitation Grant Program Grant Number: RXX MC 060201 Date: April 22, 1990 The grantee shall insert in the space provided below the site(s) expected to be used for the performance of work under the grant covered by the certification: Place of Performance (include street address, city, county, state, zip code for each site): 2063 Santa Clara Avenue Alameda County Alameda, CA 94501 APPLICATION FOR FEDERAL ASSISTANCE t. TYPE OF SUONTISSICAt APPOcabon ❑ Construction Non •Construc,, n a0n ❑ Construction ❑ •uctl0n E. aft April 22, 1990 3. DATE DECEIVED $Y STATE •.v. npp, Y• ®s ray. 0110.041'1ORP8I4 l iftedatto Stan 4. DATE RECEIVED SY FEDS$AI AGENCY Federal Idenhti r APPLICANT INFORMATION Legal Name: City of Alameda Address 1pry uty. ;ovary. stale, and up code)* 2263 Santa Clara Avenue Alameda, CA 94501 d mnal Unit: Community Development Department Name and telephone number of the person to be contacted an matters InVOMNI This application (pew area code) Peter A. Ekstein Housing Rehabilitation Coordinator (415) 748 -4581 t. EMPLOYED IDENTIFICATION NURSER MINI: �9 14 IMO 6 0 0 0 8 8 a TYPE OF APPLICATIO1K (33 New ❑ Contestation ❑ Revision I Revision. enter appropriate Meter(') in bodes►: A Incruae Award B Decrease Award C Increase Duration 0 Decrease Duration Other ppscay): ta. abeSTA°NCE FEDERAL DOMESTIC 1 1 4 181 2 1 3 0 TITLE. Rental Rehabilitation Grant Program T. TYPE W APPLICANT: (enter appropnato lobar an boa) A. State H independent School NM. B County 1: Stale Gonadial Ingnulgn of Higher Learning C Mwwc,pai • J Pirate lissomely ely D Township IC Indian Tribe E. interstate • L. indivdtal F Intermunicipal M Prole Orgsrntauon G Special Diatom N. Other (S1Jecrty) D S. NAME OF FEDERAL AGENCY: Is. AREAS AFFECTED SY PROJECT (mtea, oouna•s, stales. •bc.1: City of Alameda, California Department of Housing and Urban Development t 1. DESCRIPTIVE TITLE OP APPLICANT% PROJECT: Rental Rehabilitation Grant Program The City of Alameda proposes to rehabilitate 6 rental units for occupancy by lower income households. 13 PROPOSED PROJECT: Start Oats 7/1/90 Ending Date 6/30/91 14. CONGRESSIONAL DISTRICTS OF. a• Applicant Ninth b Pro(act Ninth N. ESTIMATED FUNDING. a Femoral $ 54,000 .DD b Applicant $ .00 c State $ .00 d Local $ .00 e Other $ 00 15. IS APPLICATION $U$JECT TO REVIEW SY STATE EXECUTIVE 040E11 1337E PROCESS? a. YES THIS PREAPPUGATIOWAPPUCATION WAS MADE AVAILABLE TO THE STATE E)cECUTNE ORDER 12372 PROCESS FOR REVIEW ON DATE D NO J( PROGRAM IS NOT COVERED SY E O. 12372 0 OR PROGRAM HAS NOT SEEN SELECTED SY STATE FOR REVIEW Program Income $ .00 9 TOTAL $ 54,000 I7. 1$ THE APPLICANT DELINQUENT ON ANY FEDERAL DEEM Yes IT *Yes.' attach an esptanalion E3 Pao 14 TO ME HEST OF MY KNOWLEDGE AND RELIEF. ALL DATA IN THIS APPLICATION PREAPPLICARON ARE TRUE AND CORRECT. THE DOCUMENT NAS SEEN DULY Au1HORIZED EY THE GOVERNING $GOY OP THE APPLICANT AND THE APPLICANT WILL COMPLY «ITN THE ATTACHED ASSURANCES V THE ASSISTANCE IS AWARDED Typed Name 01 AuthorIJed Representative Willian C. Norton d Srgnatuls 01 Aulhpnietl Repretentelrw Previous Etliliona Not usable b Tme City Mananwr c (4Tehphona numdSI 15)748 -4505 a Data Signed giandaro Form 124 AEU 4•E1) Piescroon w 084 Lnc, a, 4 10)