Item 15 Staff Report Adopt Resolution Approving Revised Housing Conservation Program GuidelinesCOUNCIL AGENDA REPORT
DATE: July 31, 1996
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT:
MEETING DATE: 08/05/96
ITEM NO. /
ADOPT RESOLUTION APPROVING REVISED HOUSING CONSERVATION PROGRAM
GUIDELINES
RECOMMENDATION:
Adopt resolution approving revised Housing Conservation Program Guidelines.
BACKGROUND:
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
for twenty years, contributes to the Town's overall housing goal by providing low interest loans and grants to income
eligible property owners for home rehabilitation purposes. In this manner, the Town preserves existing housing stock
and promotes safe housing for Town residents.
The Town's Housing Conservation Program is funded entirely by federal Community Development Block Grant
(CDBG) monies.
DISCUSSION:
Revised Housing Conservation Program Guidelines were approved in April, 1996. Revised Guidelines increased the
maximum loan amount that can be approved by the Town's Loan Review Conunittee for Owner -Occupied Loans from
$35,000 to $50,000. The Loan Review Committee, appointed by the Town Manager, assures appropriate use of funds
by applying the HCP Guidelines when evaluating loan and grant applications; it also determines loan/grant terms and
conditions.
Although the cap is sufficient to allow for completion of basic rehabilitation projects, Staff has since determined that
the cap is too low to allow for major rehabilitation projects. Major rehabilitation is sometimes necessary in older
homes, especially if maintenance has been deferred due to income limitations. Older homes also require a greater
investment of funds to assure compliance with current housing code. It is therefore recommended that the Loan Review
Committee be provided the ability to approve loans up to $80,000. The higher cap will better accommodate the program
requirement that rehab loans be sufficient to eliminate all substandard conditions within a housing unit. It will also
provide for unexpected contingencies that may arise as work progresses. The Loan Review Committee will continue
to review work write-ups for all projects over $35,000.
PREPARED BY: Regina A. F
s Director
Reviewed by: jAttorney �l\� ce Revised: 7/31/96 11:42 am
Reformatted: 10/23/95
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION APPROVING REVISED HOUSING CONSERVATION PROGRAM
GUIDELINES
July 31, 1996
CONCLUSION:
Increasing the maximum loan limit increases the Loan Review Committee's flexibility in meeting the community's desire
to allow residents the ability to stay in the Town. Without the program, families and seniors would be faced with living
in unsafe housing or selling their homes and relocating. Connections to schools, churches, doctors and other vital
community resources would be severed. The Housing Conservation Program affords long-term residents the opportunity
to remain part of the Los Gatos community.
ENVIRONMENTAL ASSESSMENTS:
This is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
The HCP is funded completely with federal CDBG monies received through the annual CDBG allocation process. The
Town's General Fund is not impacted by HCP loan and grant activity and cannot benefit from savings in the Housing
Conservation Program.
CDBG funds designated for home rehab loans are deposited into the Town's Revolving Loan Fund, as are payments
made by HCP clients. The Revolving Loan Fund has a balance of $102,264 as of 6/30/96 (#005-0116-68; Pentamation
Account 218-10555). In addition, the Town has accumulated $135,966 in CDBG "line -of -credit" grant funds designated
for Housing Rehab Loans. These funds, coupled with $34,500 in annual loan payment receipts and approximately
$20,000 in loan payoffs, would allow the Town to issue HCP loans and grants totaling $292,730 during FY 96-97.
Program activity has increased during the Summer months: two loan applications have been received and two more are
anticipated. The recently incorporated Safety Grant Component will be marketed in August. In keeping with FY 96-97
Workload and Performance Indicators, eight total loans and grants amounting to approximately $200,000 are projected
for income eligible Los Gatos residents in FY 96-97.
RAF:bcb:tl
CSD28:A:\guide.rev
Attachments:
1. Draft Resolution
Distribution:
Charlie Chew, Santa Clara County, Housing and Community Development Program
1735 N. First Street, San Jose, CA 95112
ATTACHMENT 1
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AMENDING HOUSING CONSERVATION PROGRAM GUIDELINES
ADOPTED BY RESOLUTION 1996-47
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; and
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
DOES HEREBY RESOLVE AS FOLLOWS: (1) increase the maximum loan amount that
may be approved by the Town's Loan Review Committee for Owner -Occupied loans to
$100,000, to allow for major rehabilitation projects; and (2) all other Policies and Procedures of
the Housing Conservation Guidelines adopted under Resolution 1996-47, except as herein
amended, remain in full force and effect.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 5th day of August, 1996 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
csd08:A:1RESOS1080596.
RESOLUTION 1996-97
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AMENDING HOUSING CONSERVATION PROGRAM GUIDELINES
ADOPTED BY RESOLUTION 1996-47
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; and
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
DOES HEREBY RESOLVE AS FOLLOWS: (1) increase the maximum loan amount that may be
approved by the Town's Loan Review Committee for Owner -Occupied loans to $80,000, to allow
for major rehabilitation projects; and (2) all other Policies and Procedures of the Housing
Conservation Guidelines adopted under Resolution 1996-47, except as herein amended, remain in
full force and effect.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 5th day of August, 1996 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
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 CSD08:A:\RESOS\080596.
August 5, 1996
Los Gatos, California
AMICUS BRIEF/HILLSBORO PROPERTIES/CITY OF ROHNERT PARK (13B.01)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council authorize the Town Attorney
to include the Town of Los Gatos as an amicus curiae in the case of Hillsboro Properties v. City
of Rohnert Park, Appellate Court Case C-93-1723, at no cost to the Town. Carried by a vote
of 4 ayes. Mr. O'Laughlin absent.
AMICUS BRIEF/SUTER/CITY OF LAFAYETTE (13C.01)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council authorize the Town Attorney
to include the Town of Los Gatos as an amicus curiae in the case of Suter, et al. v. City of
Lafayette, Appellate Court Case 1CIVA073743, at no cost to the Town. Carried by a vote of
4 ayes. Mr. O'Laughlin absent.
NEIGHBORHOOD CENTER POLICIES AND PROCEDURES/RESOLUTION 1996-96 (14.44)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council adopt Resolution 1996-96
entitled, RESOLUTION OF THE TOWN OF LOS GATOS ADOPTING POLICIES AND
PROCEDURES FOR THE LOS GATOS DOWNTOWN NEIGHBORHOOD CENTER. Carried
by a vote of 4 ayes. Mr. O'Laughlin absent.
HOUSING CONSERVATION PROGRAM GUIDELINES/RESOLUTION 1996-97 (15.19)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council adopt Resolution 1996-97
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AMENDING HOUSING
CONSERVATION PROGRAM GUIDELINES ADOPTED BY RESOLUTION 1996-47. Carried
by a vote of 4 ayes. Mr. O'Laughlin absent.
ELECTRONIC BANKING SERVICES/BANK OF THE WEST/RESOLUTION 1996-98 (16.06)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council adopt Resolution 1996-98
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AN AGREEMENT WITH BANK OF THE WEST FOR
ELECTRONIC BANKING SERVICES. Carried by a vote of 4 ayes. Mr. O'Laughlin absent.
COMPUTER NETWORK CONSULTING/EDGE INFORMATION/RESOLUTION 1996-99 (17.28)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council adopt Resolution 1996-99
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AN AGREEMENT WITH EDGE INFORMATION SYSTEMS FOR
COMPUTER NETWORK CONSULTING SERVICES FOR THE ADMINISTRATIVE SYSTEM
COMPUTER NETWORK UPGRADE PROJECT. Carried by a vote of 4 ayes. Mr. O'Laughlin
absent.
COMPUTER SYSTEM/HEWLETT PACKARD SERVICE/POLICE/RESOLUTION 1996-100 (18.09)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council adopt Resolution 1996-100
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AN AGREEMENT WITH HEWLETT PACKARD FOR SUPPORT
SERVICES FOR THE LOS GATOS POLICE DEPARTMENT. Carried by a vote of 4 ayes.
Mr. O'Laughlin absent.
TC: D8: MM080596
3