HomeMy WebLinkAbout94-104 - Approving Home Investment Partnership AgreementRESOLUTION NO. 94-104
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF COSTA MESA, CALIFORNIA, APPROVING
THE HOME INVESTMENT PARTNERSHIP AGREEMENT
PROVIDING FOR TENANT BASED ASSISTANCE TO
ELIGIBLE HOUSEHOLDS WITHIN THE CITY OF COSTA
MESA.
WHEREAS, the City of Costa Mesa ("City") has received funds from the United States
Department of Housing and Urban Development ("HUD") pursuant to the Federal Government's
HOME Program, 42 U.S.C. Section 12701 et seq.; and
WHEREAS, pursuant to the HOME Program and the HOME Regulations, 24 CFR 92,
the City may provide financial assistance to eligible households for tenant based assistance; and
WHEREAS, the City Council has approved a Professional Services Agreement by and
among the City, Comprehensive Housing Services, Inc., and Serving People in Need, Inc. to
develop, implement, and operate a tenant based assistance program to subsidize the rent of, and
provide intensive case management services for, eligible very low income households within the
City of Costa Mesa for a period not to exceed 24 months (the "Project");
NOW, THEREFORE, the City Council of the City of Costa Mesa, California, does
hereby find and resolve as follows:
1. The City Council certifies that the use of HOME funds for Tenant Based
Assistance is an essential element of the City's Comprehensive Housing
Affordability Strategy ("CHAS") for expanding the supply, affordability, and
availability of decent, safe, sanitary, and affordable housing, and that there is an
insufficient supply of affordable housing for very low income households.
2. The City Council finds that the proposed Project is categorically excluded
from the National Environmental Policy Act of 1969 (NEPA), pursuant
to Section 58.35.
3. The City Council hereby approves the Tenant Based Assistance Program in
substantially the form outlined in the Program Guidelines/ Operating Procedures
attached hereto, and directs the City Manager, or his designee, to modify the
Tenant Based Assistance Program as he deems necessary and appropriate.
PASSED AND ADOPTED this 7th day of November, 1994.
Mayor of the City of Costa Mesa
ATTEST:
I A
Deput"City rk of the City of Costa Mesa
329
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City Council of
the City of Costa Mesa, hereby certify that the above and foregoing Resolution No. 94-104 was
duly and regularly passed and adopted by the said City Council at a regular meeting thereof held
on the 7th day of November, 1994.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City
of Costa Mesa this 8th day of November, 1994.
1,
Deputy Citylerk and ex -officio Clerk of
the City Cou cil of the City of Costa Mesa
CITY OF COSTA MESA
TENANT BASED RENTAL ASSISTANCE PROGRAM
PROGRAM GUIDELINES/OPERATING PROCEDURES
I. INTRODUCTION
Under the HOME Partnership Investment Program (HOME), the City of Costa Mesa has
elected to assist certain eligible very low income families and individuals by establishing
a Tenant Based Rental Assistance Program (Program). The Program will enable the City
to meet the needs of the participating Tenant Households by providing monthly rental
assistance for up to twenty-four months.
The Program will offer each participating Tenant Household the freedom to choose
within the City an Eligible Rental Unit suitable to its household size. The Eligible
Rental Unit selected by each participating Tenant Household must meet the Housing
Quality Standards (HQS) prescribed for the Program by HUD and the rental rate must
be reasonable and fall within the Program's established Payment Standard (Fair Market
Rent) .
Furthermore, the Program intends to provide intensive case management to offer a
continuum of care with the ultimate goal being family self-sufficiency.
II. ADVERTISING THE PROGRAM
The City shall advertise the Program by notification to selected non-profit agencies that
currently provide a variety of social services to area residents. The outreach method
selected is simple, direct, consistent and will be presented in a manner suitable for
different segments of the eligible population. The list of the selected agencies is as
follows:
A. F.I.S.H. of the Harbor Area
P.O. Box 133
Newport Beach, CA 92663
714-642-6060
B. Orange Coast Interfaith Shelter
1963 Wallace
Costa Mesa, CA 92627
714-631-7213
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C. AIDS Services Foundation
17982 Sky Park Circle Suite J
Irvine, CA 92714
714-253-1500
D. Human Options
P.O. Box 9455
South Laguna, CA 92677
714-722-8744
E. Interval House
P.O. Box 3356
Seal Beach, CA 90740
714-594-3356
F. Dayle McIntosh Center for the Disabled
150 West Cerritos Blvd. 4
Anaheim, CA 92805
714-772-8285
G. Hamilton House
2025 Charle Street
Costa Mesa, CA 92627
714-722-0424
H. Costa Mesa Senior Corporation
695 West 19th Street
Costa Mesa, CA 92627
714-645-2356
I. S.P.I.N.
4921 Birch Street
Suite 190
Newport Beach, CA 92660
714-757-1456
Non-profit agencies shall select eligible Tenant Households based on Fair Housing priorities
which prohibit discrimination based on age, race, color, creed, religion, sex, handicap, national
origin or familial status.
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III. ELIGIBLE TENANT HOUSEHOLDS
A. Eligible Tenant Household. For the purposes of participating in the Tenant Based
Rental Assistance Program, an eligible Tenant Household (family) must qualify as a very
low income household and shall consist of one or more persons that is/are currently
assisted by the selected non-profit agencies because they are very low income and:
1. Homeless - A household that resides in a uninhabitable dwelling unit, transitional
dwelling unit, temporary dwelling unit or no dwelling unit.
2. Disabled/Handicap - At least one member of the household is disabled/handicap
as specified in 24 CPR Part 812.
3. At risk of becoming homeless - A household that currently pays more than fifty
percent (50%) for housing or is residing temporarily in a housing unit that is
occupied by an additional household(s).
4. Involuntarily displaced (or about to be displaced) including victims of domestic
violence.
At least 50% of the eligible Tenant Households shall meet one of the established Federal
preferences.
For the purpose of this Program, the definition of a very -low income household is a
Tenant Household that has a gross annual income that does not exceed 50 per cent of the
median income, adjusted for family size, established by HUD for the City of Costa Mesa
(see Exhibit A).
B. Determination of Income. Gross annual income, including all payments from all
sources, whether in cash or in kind, that is anticipated to be received by all adult
members of the Tenant Household (see Exhibit B). The Gross Annual Income
includes, but is not limited to:
1. Gross amount of wage, salary, overtime pay, commissions, fees, tips and
bonuses.
2. Net income from the operation of a business or profession.
3. Interest, dividends and other income of any kind from real or personal property.
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,333
ap34
4. Full amount of periodic payments received from social security, annuities,
insurance policies, retirement funds, pensions, disability/handicap or death
benefits.
5. Payment in lieu of earnings such as unemployment, worker's compensation and
severance pay.
G. Welfare/AFDC Assistance.
7. Alimony, child support and other regular contributions.
IV. ELIGIBLE RENTAL UNITS
A. Eligible Rental Units. Tenant Households receiving Program assistance from the
City of Costa Mesa must reside in an EIigible Rental Unit. An EIigible Rental
Unit must:
1. Meet the Federally established Housing Quality Standards. Units currently
occupied by qualified Tenant Households that are substandard units will require
either the relocation of the eligible Tenant Household or the completion of the
appropriate repairs as determined by the City of Costa Mesa.
2. Rent for a reasonable amount. For the purpose of the City of Costa Mesa's
Tenant Based Assistance Program, reasonable rent shall be no higher than the
Payment Standard adopted by the City, less a pre -calculated utility allowance.
(see Exhibit C).
3. Be privately owned and not receiving any other rent subsidies from Federal, State
or local sources.
B. Housing Quality / Occupancy Standards. The City has determined that the
following occupancy standard will apply:
The dwelling unit shall contain at least one bedroom or living/sleeping room of
appropriate size for each two persons. Persons of opposite sex, other than
husband or wife or very young children, shall not be required to occupy the same
bedroom or living/sleeping room.
0 -Bedroom - not less than one person, not more than two persons
1 -Bedroom - not less than two persons, not more than four persons
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2 -Bedroom - not less than three persons, not more than six persons
3 -Bedroom - not less than five persons, not more than eight persons
4 -Bedroom - not less than seven persons, not more than ten persons
The dwelling unit shall contain at least 1 bedroom or living/sleeping room of appropriate size
for each 2 persons. Persons of opposite sex, other than husband and wife or very young
children, shall not be required to occupy the same bedroom or living/sleeping room.
V. AMOUNT OF RENTAL SUBSIDY/TENANT HOUSEHOLD CONTRIBUTION
A. Total Tenant Household Payment. Participating Tenant Households shall pay a
minimum of 30% of their adjusted monthly income (as hereafter defined) for housing
costs (rent payment plus utilities). Adjusted monthly income shall equal one -twelfth of
gross annual income less $480.00 for each dependent (persons other than the head of
household or spouse who are under 18, or handicap/disabled or full-time students) or
deducting $400.00 per elderly household member.
FOR EXAMPLE:
Jones Family of 3 - Expected adjusted monthly income of $1,758.00 pays not less
than 30% of adjusted monthly income towards rent and utilities - $527.00
Reasonable rent - $882.00
(Contract Rent plus utilities, for a 2 bedroom unit, based on family size)
City subsidy amount, paid monthly - $355.00
TOTAL ANNUAL SUBSIDY TO JONES FAMILY - $355 x 12 = $4,260.00
Costs for Security deposit and/or move -in may be provided by the City in addition to the
rent subsidy on a case-by-case basis.
VI. LENGTH OF ASSISTANCE
The City of Costa Mesa may provide rental assistance payments for up to twelve months
(1 year) from the date of the execution of the Lease/Participation Agreement with the
possibility of renewal for a second one-year period following recertification of the Tenant
Household's income eligibility and Program qualification. Rental Assistance Payments
will be made directly to the selected Landlord. Assistance may be terminated upon
verification that:
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1. the Tenant Household is no longer income eligible (i.e. income exceeds 50% of
area median income adjusted per family size), or
2. fails to complete the recertification process, or
3. is evicted for cause, or
4. fails to fully participate in the case management segment of the Program.
AT NO TIME SHALL THE CITY'S ASSISTANCE EXCEED THE TWENTY
FOUR MONTH ASSISTANCE PERIOD.
VII. RECERTIFICATION
Federal law requires that the City of Costa Mesa recertify the income of each assisted
Tenant Household annually. This recertification must be completed prior to the
execution of a second year lease. Failure on the part of the Tenant Household to
recertify its income eligibility will cause the termination of any further rental assistance.
If a participating Tenant Household's income exceeds 50% percent of the area's median
income, assistance will be terminated.
VIII. PORTABILITY
The City of Costa Mesa's Tenant Based Assistance Program will require that the tenant
use such assistance solely within the City of Costa Mesa. No assistance will be provided
to Tenant Households who, upon issuance of the rental assistance, choose to move
outside of the city limits or subsequently during the term of the assistance move outside
the city limits.
IX. RIGHT TO AN INFORMAL HEARING PROCEDURE
Participating Tenant Households have the right to be heard by an impartial official,
without prejudice. Program participants may appeal a proposed Program action that may
have an adverse effect upon them by submitting a written Request for Hearing to the City
of Costa Mesa, Community Development Department that includes the participating
Tenant Household's objection, name and relationship of all potential parties, list of
documents to be presented, current address and telephone number.
The informal hearing will be scheduled as soon as possible. The informal hearing shall
be conducted in English. Notice of Informal Hearing will be issued at least ten days
prior to the Hearing appointment. The participating Tenant Household may bring legal
counsel and/or a translator at Participant's expense. Participating Tenant Household may
bring person(s) to testify and/or documents at Participant's expense. Participating Tenant
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Exhibit
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Households may review pertinent file documentation as along as such documentation does
not infringe on any other party's rights.
Within ten business days of the Informal Hearing, the official's decision will be mailed.
X. PROGRAM PROCEDURES
1. S.P.I.N. receives application from selected non-profit agencies.
2. S.P.I.N. verifies annual gross income, calculates the adjusted monthly income to
determine Total Tenant Payment, and reviews for compliance with funding
sources.
3. Application approval by City staff/SPIN/CHS.
4. S.P.I.N. contacts applicant by letter to set-up an evaluation interview and provide
the participation coupon and request for unit approval form.
5. Applicant submits request for Eligible Rent Unit approval inspection to CHS, Inc.
6. CHS inspection of the unit to establish HQS/approval.
7. Preparation and execution of Lease between the Tenant Household and the
property owner and execution of the Rent Payment Contract between the
property owner and the City (SPIN).
8. S.P.I.N. will deliver all original documents to CHS. CHS will set up project on
HOME C/MI system. *
9. CHS makes direct rental assistance payment to landlord.
10. At termination of each lease, CHS reverifies the Tenant Household adjusted
income.
11. S.P.I.N. contacts TBA Program participant and property owner to renew lease
and Rent Payment Contract or execute new lease and Rent Payment Contract.
12. Final direct rental assistance payment (CHS).
13. CHS delivers original project file to City.
* See HOME Program operating procedures
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XI. CASE MANAGEMENT PROGRAM
Each selected Tenant Household shall be required to participate in the Case Management
Program as follows:
1. Housing Plan
Each Tenant Household will meet with S.P.I.N. and draw up and agree to Tenant
goals.
2. Individual Needs Assessment
Specific needs of the Tenant Household will be identified by S.P.I.N. and referrals
to S.P.I.N. volunteers or, where appropriate, to a specific resource to meet that
need. Needs may include: family counseling, tutors for school-age children, legal
advice, budgeting and credit advice, household items, etc.
3. Case Management Visits
Case Management visits will be scheduled at mutually convenient times as agreed
upon by the Tenant Household and the Case Manager or Program Director. A
minimum of two visits per month will be scheduled and may take place in the S.P.
I.N. office. Written reports will be made and kept in the client file. All actions
taken will be recorded and each case will be regularly reviewed by the Program
Director.
4. Monthly Workshops
All Tenant Households will be invited to attend monthly workshops provided
through S.P.I.N. and conducted by volunteers from the professional community.
Child care will be provided.
5. Crisis Intervention
In the event of a Tenant Household crisis, i.e., loss of job, medical emergency,
landlord/tenant disputes, etc., S.P.I.N. will work with the Tenant Household (and
City consultant) to address the problem.
6. Review
The Program Director or Executive Director will review all files, procedures,
Program documents, and materials with City staff.
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� I
EXHIBIT "A"
TENANT ASSISTANCE PROGRAM
INCOME LIMITS*
#{ OF PERSONS IN ANNUAL INCOME,
HOUSEHOLD NOT TO EXCEED
1 $20,600.00
2 $23,500.00
3 $26,450.00
4 $29,400.00
5 $31,750.00
6 $34,100.00
7 $36,450.00
8 $38,800.00
*Based on 1994 income limits published by the U.S. Department of Housing and Development.
These figures are revised annually.
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i . _240
EXHIBIT "B"
GROSS ANNUAL INCOME- COSTA MESA TBA PROGRAM
(24 CFR § 813.106)
GROSS ANNUAL INCOME includes, but is not limited to:
1. The full amount, before any payroll deductions, of wages and salaries, overtime pay,
commissions, fees, tips and bonuses, and other compensation for personal services;
2. The net income from operation of a business or profession. Expenditures for business
expansion or amortization of capital indebtedness shall not be used as deductions in
determining net income. An allowance for depreciation or assets used in a business or
profession may be deducted, based on straight line depreciation, as provided in Internal
Revenue Service regulations. Any withdrawal of cash or assets from the operation of a
business or profession will be included in income, except to the extent the withdrawal
is reimbursement of cash or assets invested in the operation by the Family;
3. Interest, dividends, and other net income of any kind from real or personal property.
Expenditures for amortization of capital indebtedness shall not be used as a deduction in
determining net income. An allowance for depreciation is permitted only as authorized
in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment
will be included in income, except to the extent the withdrawal is reimbursement of cash
or assets invested by the Family. Where the Family has Net Family Assets in excess of
$5,000, Annual Income shall include the greater of the actual income derived from all
Net Family Assets or a percentage of the value of such Assets based on the current
passbook savings rate, as determined by HUD;
4. The full amount of periodic payments received from social security, annuities, insurance
policies,_ retirement funds, pensions, disability or death benefits and other similar types
of periodic receipts, including a lump -sum payment for the delayed start of a periodic
payment;
5. Payments in lieu of earnings, such as unemployment and disability compensation,
worker's compensation and severance pay (but see paragraph (c)(3) of this section);
6. Welfare Assistance. If the Welfare Assistance payment includes an amount specifically
designed for shelter and utilities that is subject to adjustment by the Welfare Assistance
agency in accordance with the actual cost of shelter and utilities, the amount of Welfare
Assistance income to be included as income shall consist of:
(i) The amount of the allowance or grant exclusive of the amount specifically
designated or shelter or utilities, plus
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341
(ii) The maximum amount that the Welfare Assistance agency could in fact allow the
Family for shelter and utilities. If the Family's Welfare Assistance is ratably
reduced from the standard of need by applying a percentage, the amount
calculated under this paragraph (b)(6)(ii) shall be the amount resulting from one
application of the percentage;
7. Periodic and determinable allowances, such as alimony and child support payments, and
regular contributions or gifts received from persons not residing in the dwelling;
8. All regular pay, special pay and allowances of a member of the Armed Forces (but see
paragraph (c)(7) of this section); and
9. Any earned income tax credit to the extent it exceeds income tax liability.
GROSS ANNUAL INCOME does not include the following:
1. Income from employment of children (including foster children) under the age of 18
years;
2. Payments received fro the care of foster children;
3. Lump -sum additions to Family assets, such as inheritances, insurance payments
(including payments under health and accident insurance and worker's compensation),
capital gains and settlement for personal or property losses (but see paragraph (b)(5) of
this section);
4. Amounts received by the Family, that are specifically for, or in reimbursement of, the
cost of medical expenses for any Family member;
5. Income of a live-in aide, as defined in § 813.102;
6. Amounts of educational scholarships paid directly to the student or to the educational
institution, and amounts paid by the Government to a veteran, for use in meeting the
costs of tuition, fees, books, equipment, materials, supplies, transportation, and
miscellaneous personal expenses of the student. Any amount of such scholarship or
payment to a veteran not used for the above purposes that is available for subsistence is
to be included in income;
7. The special pay to a Family member serving in the Armed Forces who is exposed to
hostile fire;
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342
8. (i) Amounts received under training programs funded by HUD;
(ii) Amounts received by a Disabled person that are disregarded for a limited time for
purposes of Supplemental Security Income eligibility and benefits because they
are set aside for used under a Plan to Attain Self -Sufficiency (PASS); or
(iii) Amounts received by a participant in other publicly assisted programs which are
specifically for or in reimbursement of out-of-pocket expenses incurred (special
equipment, clothing, transportation, child care, etc.) and which are made solely
to allow participation in a specific program;
9. Temporary, nonrecurring or sporadic income (including gifts);
10. For all initial determinations and reexaminations of income carried out on or after April
23, 1993, reparation payments paid by a foreign government pursuant to claims filed
under the laws of that government by persons who were persecuted during the Nazi era;
or
11. Amounts specifically excluded by any other Federal stature from consideration as income
for purposes of determining eligibility or benefits under a category or assistance
programs that includes assistance under the United States Housing Act of 1937. A notice
will be published in the FEDERAL REGISTER and distributed to PHAs and owners
identifying the benefits that qualify for this exclusion. Updates will be published and
distributed when necessary.
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EXHIBIT "C"
CITY OF COSTA MESA
TENANT BASED ASSISTANCE PROGRAM
UNIT SIZE
efficiency
1 -bedroom
2 -bedroom
1
3 -bedroom
4 -bedroom
* See footnote on page 9
PAYMENT STANDARD*
October, 1994
MONTHLY RENT PAYMENT,
INCLUDING UTILITIES
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Resolution No. 94-104
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$ 655.00
$ 716.00
$ 885.00
$1,231.00
$1,371.00
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344
EXHIBIT "D"
OCCUPANCY LIMITS
The following occupancy standards apply to the Program:
UNIT SIZE MINIMUM # MAXIMUM #
OF PERSONS OF PERSONS
0 -Bedroom 1 2
I -Bedroom 2 4
2 -Bedroom 3 6
3 -Bedroom
4 -Bedroom
5 8
7 10
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