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Item 11 Staff Report Adopt Resolution Approving Revised Housing Conservation Program GuidelinesCOUNCIL AGENDA REPORT DATE: October 16, 1996 TO: MAYOR AND TOWN COUNCIL FROM: TOWN MANAGER SUBJECT: MEETING DATE: 10/21/96 ITEM NO. / ADOPT RESOLUTION APPROVING REVISED HOUSING CONSERVATION PROGRAM GUIDELINES RECOMMENDATION: Adopt resolution approving revised Housing Conservation Program (HCP) Guidelines. BACKGROUND: The Housing Conservation Program provides no interest and low interest loans, as well as emergency and safety grants, to income eligible property owners for home rehab purposes. In this manner, the Town preserves the existing housing stock, promotes safe housing, and furthers the Town's overall housing goals. The HCP is funded entirely by federal Community Development Block Grant monies. Revisions to the HCP Guidelines were approved in April and August, 1996. The April revisions provided for the inclusion of a new Safety Grant Program and increased the maximum loan amount that can be approved by the Town's Loan Review Committee for owner -occupied loans. The August revision increased the Loan Review Committee's approval authority to $80,000, so the Program may better accommodate the higher costs associated with major rehab projects, particularly those undertaken on older homes where maintenance has been deferred due to income limitations. DISCUSSION: Existing guidelines do not currently include "subordination" or "transfer" clauses. The recommended action will provide for the inclusion of these clauses in the program guidelines. Subordination Clause: If Borrower's home is refinanced, moving the Town's position down, the loan is due and payable, with the exception of Reverse Annuity Mortgage loans. If the Town's position remains the same or is moved up, the Loan Review Committee reserves the right to review Borrower's financial status to determine whether or not the loan is due and payable. It is the responsibility of the Borrower to notify the Town in writing of any changes to the Town's loan position. Each HCP loan is evidenced by a Promissory Note and secured by a Deed of Trust satisfactory to the Town. Ordinarily, the Town's loan is in "second" position behind the client's home mortgage. When the loan is initially approved, the Loan Review Committee verifies that the principal amount of the rehab loan, together with the principal amount of any other debt secured by the property, does not exceed 90% of the post -rehab value of the structure. Throughout the life of the loan, it is important that the Town's loan stay in position to receive payoff in the event the client's property is foreclosed. On occasion, an HCP client decides to refinance his/her mortgage or take out another loan secured by the property. Such actions impact the Town's loan position and can jeopardize the Town's security interest in the client's property. PREPARED BY: R Reviewed by: Falkner, Community Servi rector ttorne Finance Revised: 10/16/96 2:35 pm Reformatted: 10/23/95 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT RESOLUTION APPROVING REVISED HOUSING CONSERVATION PROGRAM GUIDELINES October 9, 1996 Adding the subordination clause to the guidelines establishes a procedure for considering subordination requests. It also authorizes the Loan Review Committee to take a look at the client's current fmancial status and consider the impact of the subordination on the Town's security interest before making a determination. Subordination agreements, if approved by the Loan Review Committee, are executed by the Town Manager. Transfer Clause: In the event the property described in the Deed of Trust or any part thereof is sold, agreed to be sold, conveyed or alienated by the Trustor or by the operation of law, which includes but is not limited to transfers resulting from death or otherwise, the obligation evidenced in the Note, irrespective of the maturity date expressed therein, at the sole option of the holder thereof and without demand of notice, shall immediately become due and payable. However, if the property is transferred to a very low or low income household, the Town may allow the loan to be assumed, provided the new owner submits a completed application to the Town. Determination on the transfer will then be made by the Loan Review Committee in accordance with the Town Housing Conservation Program Guidelines in effect at the time the Note was executed by the original client. Adding the transfer clause to the guidelines allows an HCP loan to be assumed provided: • annual household income of the new owner(s) does not exceed 80% of the County Median Income; • the new owner(s) completes an HCP loan application for consideration by the Loan Review Committee; and • the Loan Review Committee fmds the new owner(s) eligible in accordance with the HCP Guidelines in effect at time the Note was executed by the original client. Making an HCP loan assumable under prescribed conditions opens the door for the home to be transferred from one low income household to another. The HCP Guidelines also define the responsibilities of the Loan Review Committee and others in managing the loan and grant program. The list of responsibilities assigned to the Loan Review Committee has been modified to address the Committee's consideration of subordination requests and other issues arising from the transfer of property (see Page 5 of the attached Guidelines). CONCLUSION: Adding subordination and transfer clauses to the HCP guidelines establishes procedures for considering issues that sometimes arise during the life of a loan. These clauses have been included in past guidelines, but were deleted in April, 1996 so consideration could be given to their inclusion in other loan documents. It has been determined that both clauses appropriately belong in the HCP Guidelines. ENVIRONMENTAL ASSESSMENTS: This is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: CDBG funds designated for home rehab loans are deposited into the Town's Revolving Loan Fund, as are payments made by HCP clients. As of August 31, 1996, the Revolving Loan Fund balance amounted to $141,946 (#005-0116-68; Pentamation Account 218-10555). The Town has also accumulated $135,966 in CDBG "line -of -credit" funds designated for Housing Rehab. These funds, coupled with $34,500 in annual loan payment receipts and approximately $20,000 in loan payoffs, will allow the Town to issue HCP loans and grants totaling $292,412 during FY 96/97. The Community Services Department is currently working on loans and grants amounting to nearly $100,000 (with expenditures to occur over the next six months) and anticipates more activity in the months to follow. PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT RESOLUTION APPROVING REVISED HOUSING CONSERVATION PROGRAM GUIDELINES October 9, 1996 Attachments: 1. Draft Resolution Exhibit A: Revised Housing Conservation Program Guidelines Distribution: Charlie Chew Santa Clara County, Housing and Community Development Program 1735 N. First Street, San Jose, CA 95112 CSD29:a:1hcptguidrev.rpt RESOLUTION 1996- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING HOUSING CONSERVATION PROGRAM GUIDELINES ADOPTED BY RESOLUTION 1996-97 WHEREAS, the Town of Los Gatos has a Housing Conservation Program allowing it to provide Community Development Block Grant (CDBG) funded low interest loans and grants to income eligible property owners for home rehabilitation purposes; and WHEREAS, the Town of Los Gatos desires to revise the guidelines which govern the Housing Conservation Program; NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE AS FOLLOWS: (1) adopt the Housing Conservation Program Guidelines attached as Exhibit A; and (2) rescind Resolution 1996-97. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 21 st day of October, 1996, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: AB STAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA INTERNAL TRACKING DEPTMENT: AGENDA ITEM: // / RESO/ORD NUMBER: BY pA LIST IN BOOK ON DISC OR SHARE. FORM SENT TO DEPT. PUBLISH IF REQUIRED - Date of Publication ...i. ORDINANCES ONLY WHEN SIGNATURE AND /s/ COPY (1 EACH) returned, LIST ON SIGNATURE TRACKING & SEND TO MAYOR MAIL TO DISTRIBUTION LIST NO.of COPIES: PROOF OF MAILING PREPARED SIGN BY CLERK/SEAL 9 20 ENTER INTO ECM ORDINANCE/RESOLUTION FILE FILE IN VAULT CODIFICATION IF ORDINANCE c tk: d 16:1otherlordra2 OFFICE OF THE TOWN CLERK ORDINANCES & RESOLUTIONS ORIGINATING DEPT: COUNCIL AGENDA DATE: COUNCIL AGENDA ITEM: SUBJECT: Number: Date of Adopt: RESOLUTION��r l qq (, -/32 COUNCIL ACTION: AYES: NAYS: ABSENT: ABSTAIN: COUNCIL MEMBERS NAMES: Number: Date of Intro: Date of Adopt: ZONE CHANGE: ORDINANCE Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin Mayor(or Chairman) RANDY ATTAWAY ORDINANCES and RESOLUTIONS MUST BE RETURNED TO TOWN CLERK BY WEDNESDAY AT 12 NOON. ORDINANCES MUST BE READY FOR IMMEDIATE PUBLICATION RESOLUTION 1996 -132 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING HOUSING CONSERVATION PROGRAM GUIDELINES ADOPTED BY RESOLUTION 1996-97 WHEREAS, the Town of Los Gatos has a Housing Conservation Program allowing it to provide Community Development Block Grant (CDBG) funded low interest loans and grants to income eligible property owners for home rehabilitation purposes; and WHEREAS, the Town of Los Gatos desires to revise the guidelines which govern the Housing Conservation Program; NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE AS FOLLOWS: (1) adopt the Housing Conservation Program Guidelines attached as Exhibit A; and (2) rescind Resolution 1996-97. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 21 st day of October, 1996, by the following vote: COUNCIL MEMBERS: AYES: Joanne Benjamin, Linda Lubeck, Mayor Randy Attaway. NAYS: None ABSENT: Patrick O'Laughlin ABSTAIN: Steven Blanton SIGNED: /s/ Randy Attaway MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA TOWN OF LOS GATOS HOUSING CONSERVATION PROGRAM GUIDELINES I. PURPOSE The Town's housing goal is to provide adequate housing for Town citizens, regardless of age, income, race or ethnic background. The Town encourages conservation and construction of housing adequate for future populations and replacement needs consistent with environmental limitations and in proper relationship to community facilities, open space and transportation. The Housing Conservation Program (HCP), managed by the Community Services Department since 1976, contributes to the Town's overall housing goal by providing CDBG funded low interest loans and grants to income eligible property owners for home rehabilitation purposes. In this manner, the Town preserves its existing housing stock and promotes safe housing for Los Gatos residents. Housing conservation is achieved through: 1. Owner Occupied Housing Rehabilitation Loans 2. Rental Housing Rehabilitation Loans 3. Emergency Loans 4. Rehabilitation Grants (Emergency and Safety) The Housing Conservation Program is funded entirely by federal Community Development Block Grant (CDBG) monies. II. GENERAL ELIGIBILITY CRITERIA A. Income Eligibility: The Town's Housing Conservation Program is designed to assist low and very low income residents, i.e., those with annual household incomes not exceeding 80% of the County Median Income (CMI) adjusted for household size as defined by the Federal Department of Housing and Urban Development for the San Jose PMSA. The Town offers 6% rehabilitation loans to qualified applicants with incomes exceeding 80% of the CMI. Very Low Income: Low Income: Moderate Income: Annual household income at or below 50% of CMI. Annual household income greater than 50%, but not exceeding 80%, of CMI. Annual household income greater than 80%, but not exceeding 100%, of CMI. Non-profit organizations providing affordable housing or other housing related services to persons at or below 80% of the CMI are eligible for assistance through the Town's HCP pending analysis of direct benefit to Los Gatos residents. B. Eligible Structures: Single-family detached, single-family attached, multi -family structures, and mobile homes. Structure must be located within the Town's boundary limits, except as otherwise approved by the Loan Review Committee in instances where the housing unit, located elsewhere in Santa Clara County, serves a housing need benefiting a segment of the Los Gatos population. Structure to be rehabilitated must also be of legal status. C. Hazard Insurance: Prior to disbursement of funds, applicant must provide proof of adequate hazard insurance on the structure, which must be maintained for the life of the loan. The amount of coverage must equal the full replacement cost of the insured structure, and the Town of Los - 1 - Gatos must be named in the policy as a lenders loss payee. Hazard insurance coverage will be monitored by the Town. D. Applications: A Town application must be completed to initiate the process for a rehabilitation loan and grant. Applicants may apply for more than one loan or grant program. In administering the Housing Conservation Program, the Town does not discriminate on the basis of age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental disability, national origin, religion, medical condition, or any other basis prohibited by law. III. LOAN AND GRANT PROGRAMS The cost of rehabilitation materials, labor, permits, credit report, lot book, termite report, loan processing fee, architectural fees, engineering fees, business license fee, and completion of rehabilitation contract specifications may be included in the principal loan/grant amount. A. LOANS - ELIGIBILITY CRITERIA REHAB LOANS OWNER OCCUPIED RENTAL HOUSING EMERGENCY INCOME ELIGIBILITY See Interest Rate below. Applicant must own property to be rehabilitated. Over the life of the loan, only tenants with an annual household income of 80% or less of CMI may occupy rehabilitated units. Annual household income cannot exceed 80% of CMI MAXIMUM LOAN AMOUNT $80,000 (Loans over $35,000 require special approval consisting of a secondary review of the Rehab Work Write -Up Inspection List by the Loan Review Committee.) Single -Unit: $15,000 Multi -Units: $25,000 Complex: $100,000 Program applicable to structures with 1 to 10 rental units only. $15,000 INTEREST RATE 0%: Annual household income at or below 50% of CMI (payments may be deferred) 3%: Annual household income between 50%-80% of CMI (payments may be fully or partially deferred) 6%: Annual household income exceeds 80% of CMI From 3% to 6% as determined by Loan Review Committee. Payments may be deferred up to five years upon Loan Review Committee's approval of owner's pro forma outlining improvement costs and expected rental income. 3% LOAN TERM 3 to 20 years depending upon Applicant's financial condition. 15 years 3 to 5 years RESTRICTIONS Over the life of the loan, rent on rehabilitated unit(s) is restricted to 30% of the household's annual gross income. Emergency condition must exist (i.e., threat to life and property). - 2 - LOANS: OTHER CONDITIONS 1. Ability to Repay Applicant must evidence adequate capacity to repay rehabilitation loan(s). 2. Assets Applicant's assets will be considered by the Loan Review Committee during the loan evaluation process. 3. Credit Worthiness Applicant's credit history must be in good standing. A credit report will be obtained by the Town for verification purposes. 4. Elimination of Substandard Conditions The rehabilitation loan, when combined with other resources, must be sufficient to eliminate substandard conditions. 5. Loan to Value Ratio The principal amount of the rehabilitation loan, together with the principal amount of any other debt secured by the property, cannot exceed 90% of the projected post -rehabilitation value of the structure. 6. Documentation HCP loans are evidenced by a Promissory Note, executed by the owner, and secured by a Deed of Trust, satisfactory to the Town. An Owner Participation Agreement outlining HCP loan terms and conditions is also executed by the owner and Town. 7. Subordination If Borrower's home is refinanced, moving the Town's position down, the loan is due and payable, with the exception of Reverse Annuity Mortgage loans. If the Town's position remains the same or is moved up, the Loan Review Committee reserves the right to review Borrower's financial status to determine whether or not the loan is due and payable. It is the responsibility of the Borrower to notify the Town in writing of any changes to the Town's loan position. 8. Transfer In the event the property described in the Deed of Trust or any part thereof is sold, agreed to be sold, conveyed or alienated by the Trustor or by the operation of law, which includes but is not limited to transfers resulting from death or otherwise, the obligation evidenced in the Note, irrespective of the maturity date expressed therein, at the sole option of the holder thereof and without demand of notice, shall immediately become due and payable. However, if the property is transferred to a very low or low income household, the Town may allow the loan to be assumed, provided the new owner submits a completed application to the Town. Determination on the transfer will then be made by the Loan Review Committee in accordance with the Town Housing Conservation Program Guidelines in effect at the time the Note was executed by the original client. ELIGIBLE WORK: Eligible repairs are recommended to the Loan Review Committee by the County Rehab Specialist. Repairs must eliminate substandard conditions as they exist throughout the housing unit and address one or more of the following: I. Code Violation Repairs which correct deficiency violations under applicable Building and Housing codes, including incipient violations. 2. Disabled Access Removal of architectural barriers which help provide for the independent functioning of a disabled household member, or modifications which make the housing unit fully accessible to the disabled household member. 3. Earthquake Safety Repairs or modifications which enhance the structural safety of the housing unit during an earthquake. 4. Overcrowding Rehabilitation or alteration of a housing unit which alleviates conditions creating overcrowding, including expansion of the unit to a size adequate to house the occupants (i.e., eligible repair work may provide for increased bedroom and bathroom space through addition or conversion). 5. General Property Improvements General improvements such as landscaping, fence repair, and painting for cosmetic effect, may be financed only if all substandard conditions (i.e., code violations or deficiencies) are corrected. The purpose of the Housing Conservation Program is to provide loan funds to make needed repairs, not to upgrade the property for resale. - 3 - B. GRANTS - ELIGIBILITY CRITERIA GRANTS EMERGENCY SAFETY: Owner Occupied SAFETY: Rental Housing INCOME ELIGIBILITY Annual household income cannot exceed 80% of CMI. Annual household income cannot exceed 80% of CMI. Annual household income of tenant cannot exceed 80% of CMI. For a five year period following completion of rehab work, annual household income of tenant(s) occupying rehabilitated rental unit(s) cannot exceed 80% of CMI. ELIGIBLE HOUSING Only owner occupied housing is eligible. Program applicable to structures with 1 to 10 rental units only. MAXIMUM GRANT AMT $3,000 Up to $10,000 Up to $3,000 per unit within any five year period. CONDITIONS Emergency condition must exist (i.e., threat to life and property). • Owner approval required. • For a five year period following completion of rehab work, rent on rehabilitated units is restricted to 30% of the household's annual gross income. ELIGIBLE WORK Limited to housing code violations. Resources must be sufficient to eliminate emergency substandard condition. Limited to that which: Limited to that which: • Allows a structure to meet minimum health and safety requirements. • Provides minimum (non- engineered) earthquake retrofitting. • Helps prevent residential fires through fire prevention mechanisms • Provides security improvements. • Improves accessibility for elderly and disabled residents. • Helps prevent residential fires through fire prevention mechanisms. • Provides security improvements. • Improves accessibility for elderly and disabled residents. Examples of Eligible Work: Minimum Health/Safety Requirements Concealing exposed wires or junctions, installing stair or porch railings, correcting unsanitary conditions, grounding electrical systems. Earthquake Retrofitting Fastening floor framing (mudsills) to foundations, installing plywood (shear) panels as required to prevent lateral movement at walls during earthquakes, strapping/securing gas fixtures (water heaters or clothes dryers), replacing rigid gas connectors with flexible type to prevent gas leaks during or after earthquakes, etc. Residential Fire Prevention Installation of smoke alarms and fire extinguishers, correction of inadequate clearances between gas fixtures and combustibles, removal of hazardous combustibles, the sweeping, inspection, and repair of fireplaces, including installation of spark arrests, etc. Security Improvements Deadbolts on exterior doors, window locks, motion sensor controlled exterior lighting, etc. Elderly/Disabled Resident Assistance Installation of grab bars, wheelchair ramps, accessible door openings, hand-held shower heads, etc. - 4 - IV. PROGRAM RESPONSIBILITIES A. Community Services Department The Community Services Program Coordinator: administers the Housing Conservation Program; - conducts program marketing and outreach; conducts initial interviews, processes applications and determines eligibility; conducts preliminary housing surveys; presents applications and projects to the Loan Review Committee; prepares and executes loan and other necessary documents; - coordinates rehabilitation projects with the Rehabilitation Specialist; mediates disputes between homeowners and contractors; processes progress and final payments; monitors monthly loan payments, payoffs, foreclosures, and program incomes for loan portfolio; and, prepares quarterly and annual rehab reports for County of Santa Clara's Community and Housing Development Program. B. Loan Review Committee: The Loan Review Committee is appointed by the Town Manager. The Committee interprets and applies Housing Conservation Program guidelines in evaluating and determining loans, grants, subordination requests, and issues arising from transfer of property, establishes terms and conditions for loans and grants, and assures the appropriate use of funds. It also recommends policy and procedural changes and advises the Program Coordinator on housing related issues. C. Town Manager: The Town Manager is authorized to sign various program documents, including owner participation agreements, payment authorization forms, bank agreements, and requests for full reconveyance. An applicant denied a loan or grant by the Loan Review Committee may appeal to the Town Manager, who shall make the final determination as to the applicant's eligibility and appropriate use of housing conservation program funds. Appeal procedures are defined in Section V below. D. Finance Department: The Finance Department performs various loan management functions: it tracks HCP loan transactions through the Town's accounts receivable system, collects and deposits monthly loan payments, approves payment authorization forms, and generates monthly aged invoice reports for loan monitoring purposes. E. Urban County Housing and Community Development Program: The County Rehabilitation Specialist surveys property to determine extent of rehabilitation work; establishes project work scope with Client and Program Coordinator; prepares construction and bid specifications; assists property owner and contractor(s) in negotiating construction contracts; inspects construction work in progress and approves change orders; approves payments to contractor(s) as appropriate; resolves conflicts; conducts progress and final inspections, and; performs tasks relating to project close out. County Staff reviews rehab quarterly and annual reports and monitors program administration. -s- V. APPEAL PROCEDURES A. An applicant who believes s/he is aggrieved by a determination of the Loan Review Committee may elect to have his/her application reviewed by the Town Manager. B. If the Loan Review Committee denies or refuses to approve an HCP loan or grant, it shall provide a written explanation of the determination and the basis therefore to the applicant within two weeks following the determination. The written explanation shall also inform the applicant of procedures for obtaining review of the decision. C. The applicant may request a meeting with the Town Manager by submitting a written request to the Town within ten days following receipt of notice of determination by the Loan Review Committee. The applicant's written request for appeal should include any statement of fact within the applicant's knowledge or belief or other material which may have bearing on the appeal. The Town Manager shall afford the applicant the opportunity for a meeting within fifteen days following receipt of the written request. D. The Town Manager has the authority to revise the initial determination of the HCP loan or grant application. E. The Town shall prepare a summary of the matters discussed in the meeting to be included as part of the applicant's file. F. The Town Manager shall review and reconsider the initial determination of the applicant's case in light of: 1. All material upon which the Town based its original determination, including all applicable rules and regulations; 2. The reasons given by the applicant for requesting review and reconsideration of the application; 3. Any additional written or relevant documentary material submitted by the applicant; and 4. Any further information which the Town, in its discretion, obtains by request, investigation, or research to ensure fair and full review of the application. G. The determination on review by the Town Manager shall include, but is not limited to, the Town's decision or reconsideration of the application, and the factual and legal basis upon which the decision rests, including any pertinent explanation or rationale. The determination shall be in writing with a copy provided the applicant and Loan Review Committee no later than four weeks following the applicant's meeting with the Town Manager. CSD:c:bcb\hcp\GUIDELNS.RV3 (Last Rev. October 4, 1996) - 6 - October 21, 1996 Los Gatos, California BROADWAY 80/RESIDENTIAL REMODEL/RESOLUTION 1996-131/CONT. Motion by Mrs. Lubeck, seconded by Mr. Blanton, that Council adopt Resolution 1996-131 entitled, RESOLUTION OF THE TOWN OF LOS GATOS GRANTING APPEAL OF PLANNING COMMISSION DECISION TO APPROVE AN APPEAL OF THE PLANNING COMMISSION DECISION TO APPROVE A MINOR ARCHITECTURE AND SITE APPLICATION TO DEMOLISH A SECONDARY DWELLING AND TO INCORPORATE THE FLOOR AREA IN THE EXISTING RESIDENCE ON PROPERTY IN THE R-1D:LHP ZONE; PROJECT APPLICATION PRJ-96-67. Carried by a vote of 3 ayes. Mr. O'Laughlin absent. Mr. Attaway voted no for reasons noted in previous record. PERFORMANCE AUDITS FOR THE TOWN (18.06) The following people from the audience spoke to this issue: Mike Mount, 24421 Loma Prieta, David Griffith and Associates, explained the management studies as they relate to cost reductions and revenue opportunities. Frank Jones, 112 Belhaven Drive, believes that staff can identify areas of efficiency and savings within the organization themselves. No one else from the audience addressed this issue. Motion by Mr. Blanton, seconded by Mrs. Benjamin, to accept and file report on performance audits. Carried by a vote of 4 ayes. Mr. O'Laughlin absent. HOUSING CONSERVATION PROGRAM/RESOLUTION 1996-132 (11.19) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council adopt Resolution 1996-132 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AMENDING HOUSING CONSERVATION PROGRAM GUIDELINES ADOPTED BY RESOLUTION 1996-97. Carried by a vote of 4 ayes. Mr. O'Laughlin absent. Mayor Attaway requested staff to bring a report back to Council to consider possible methods of screening future loan arrangements whereby recipients of loans who find themselves with more income then when they started the loan program would have the obligation to pay back the loan at that time. NAMING TOWN OWNED PUBLIC FACILITIES/RESOLUTION 1996-133 (19.44) Motion by Mrs. Benjamin, seconded by Mrs. Lubeck, that Council adopt Resolution 1996-133 entitled, RESOLUTION OF THE TOWN OF LOS GATOS ESTABLISHING TOWN COUNCIL POLICY ON NAMING TOWN -OWNED PUBLIC FACILITIES. Carried by a vote of 3 ayes. Mr. O'Laughlin absent. Mr. Blanton voted no. COUNCIL COMMITTEE REPORTS Joanne Benjamin reported on the Cities Association and the fact that Pat Danville had information on truancy that she wanted other cities to be aware of and which Mrs. Benjamin has with her to distribute to Council. ADJOURNMENT Motion by Mr. Blanton, seconded by Mrs. Benjamin, that this evening's meeting be adjourned at 11:08 p.m. Carried by a vote of 4 ayes. Mr. O'Laughlin absent. A 1'1'EST: Marian V. Cosgrove Town Clerk TC:D8:MM102196 7