PISMO BEACH REDEVELOPMENT AGENCY AGENDA REPORT

Transcription

1 PISMO BEACH REDEVELOPMENT AGENCY AGENDA REPORT SUBJECT / TITLE: A RESOLUTION AUTHORIZING AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO TO ADMINISTER THE FIRST-TIME HOME BUYER PROGRAM, EXTENDING THE TERM OF THE AGREEMENT TO JUNE 30, RECOMMENDATION: By motion, adopt Resolution by roll call vote authorizing Amendment No. 1 to the Professional Services Agreement with the Housing Authority of the City of San Luis Obispo to administer the First-Time Home Buyer Program, and authorizing the RDA s Executive Director to execute said Amendment on behalf of the RDA. EXECUTIVE SUMMARY: The primary purpose of this Agenda Item is to seek authorization to extend to June 30, 2009 the above-cited Professional Services Agreement, which was first authorized on July 1, 2008 by Redevelopment Agency Resolution No. R Since the Agreement was made, the Housing Authority of the City of San Luis Obispo ( HASLO ) has advertised the First-Time Home Buyer Program to the public and to Banks and Real Estate Agencies, and has conducted seminars to inform people about the Program and the process of qualifying and applying for home-buying assistance. While HASLO has received inquiries about the Program, no applications have been filed todate. It is perceived that the low response to-date at least in part reflects some of the recent developments in the national, state and local economies and especially the widespread difficulties encountered by almost everyone seeking financing for housing, as well as automobiles and business in general during the past several months. Only in the last month or so have federal government programs emerged to help facilitate homebuyers seeking financing. While this First Time Home Buyer Program does offer significant assistance to qualifying persons, such persons also need previously normal mortgage funding to complete their financing for buying a home. Although no specific results can be assured, it is anticipated that prospects for success are improving, and HASLO is enthused about continuing its efforts under the Agreement, as amended. Regarding costs, the Agreement includes a Budget capped at $30,000 for Authority services rendered and expenses incurred per this Agreement. Given the market conditions and low responses to date, HASLO has billed the RDA for $3, It is anticipated that no additional funds beyond the $26,000 + remaining from the $30,000 Budget will be needed during this extension. RDA Agenda Item: 6.J Page 1

2 BACKGROUND: The balance of this staff report is comprised of background information on the RDA s First Time Home Buyer s Program, which was prepared by Steven H. Dukett of Urban Futures, Inc., consultant to the RDA, and presented in the July 1, 2008 Staff Report for the original authorizing Resolution for the Agreement with HASLO. Pursuant to the Agency s Implementation Plan, first-time home buying assistance has been identified as an important and viable way of improving the condition of affordable housing for persons and families of low- and moderate-income. On November 6, 2007, the Agency appropriated $1.5 million from the Agency s Low- to Moderate-Income Housing Fund for the creation of appropriate housing assistance programs. On December 18, 2007, the Agency approved program policies for a First-Time Home Buyer ( FTHB ) Program and a Home Improvement Program ( HIP )(collectively, the Programs ). The approval of the policies has formally established a benchmark with respect to the Agency Board s policy with respect to the administration of the Programs and enables staff to administer the Programs. In the intervening period time, the Agency s Advisors (i.e., Urban Futures, Inc.) have conducted an assessment of the interest and capabilities of prospective housing operating entities that could be of assistance to the Agency in implementing the Programs. As a result, it is recommended that the Agency authorize the Housing Authority of the City of San Luis Obispo to administer the FTHB pursuant to the terms of the attached professional services agreement. First-Time Home Buyer Program Background The purpose of the FTHB Program is to assist low- to moderate-income persons who wish to purchase their principal residence in the City of Pismo Beach, but are unable to secure a sufficient down-payment to qualify for a primary loan. Only applicants whose combined family income does not exceed 120% of the County median income, as adjusted by family size, as annually adjusted by the California Department of Housing and Community Development (HCD), qualify for this Program. The intent of the Program is to offset some of the impact of high housing costs on low- to moderate-income households, while encouraging investments in the community, and helping qualified applicants purchase a home within the City of Pismo Beach. The Program provides purchase money loans to assist with down payment and closing costs. Program loans are evidenced by a promissory note secured by a second deed of trust. Implementation Approach At the time the Programs were approved, it was noted that they would be best implemented through an operating agency format. Pursuant to this approach, the Agency was advised that day to day operations would be the responsibility of an independent entity (e.g., a private corporation or governmental agency) pursuant to a formal operating agreement. Policy and financial level controls would be maintained by RDA / City staff. RDA Agenda Item: 6.J Page 2

3 FISCAL IMPACT: On November 6, 2007, the Agency appropriated $1.5 million from the Agency s Low- to Moderate-Income ( LMI ) Housing Fund for the creation of appropriate housing assistance programs. At the time the program policies for the HIP and FTHB were approved, it was anticipated that the Agency s appropriation would be used in the following approximate amounts: Use Amount Units FTHB Loans $600,000 3 HIP Grants 800, to 60 Implementation/Administration 100,000 N/A TOTAL $1,500,000 As reflected in the attached professional services agreement, the HASLO s budget for administering the FTHB Program is $30,000. It is important to note that the HASLO has advised that their budget is based on a worst-case scenario with respect to the difficulties that could be experienced with respect to program marketing and qualifying clients that potentially could utilize the FTHB Program. The attached agreement provides that the HASLO shall only charge for those actual costs required in performing services in administering the FTHB Program. It is anticipated that No additional funds beyond the $26,000 + remaining from the original $30,000 Budget will be needed during this extension. ATTACHMENTS: 1. Resolution 2. Amendment No. 1 to the Professional Services Agreement with HASLO 3. Professional Services Agreement with HASLO Prepared by: George Edes, RDA Treasurer Meeting Date: April 21, 2009 RDA Executive Director Approval: RDA Agenda Item: 6.J Page 3

4 RESOLUTION NO. RDA A RESOLUTION OF THE PISMO BEACH REDEVELOPMENT AGENCY AUTHORIZING AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO TO ADMINISTER THE FIRST-TIME HOME BUYER PROGRAM, EXTENDING THE TERM OF THE AGREEMENT TO JUNE 30, WHEREAS, the Pismo Beach Redevelopment Agency (the Agency ) is a duly constituted redevelopment agency under the laws of the State of California and pursuant to such laws is responsible for the administration of redevelopment activities within the City of Pismo Beach; and WHEREAS, pursuant to the California Community Redevelopment Law (Health & Safety Code et seq.), and consistent with the Agency s adopted redevelopment plans, the Agency is obligated to utilize not less than 20% of its tax increment revenues to develop, improve and preserve housing affordable to persons or families of low- and moderateincome; and WHEREAS, pursuant to the Agency s Implementation Plan, single-family ownership has been identified as an important and viable way of increasing and improving affordable housing opportunities for persons and families of low- and moderate-income; and WHEREAS, on November 6, 2007 the Agency adopted Resolution No. RDA , which appropriated $1.5 million from the Agency s Low- to Moderate-Income Housing Fund for the creation of appropriate housing assistance programs; and WHEREAS, on December 18, 2007 the Agency adopted Resolution No. RDA which adopted program policies with respect to the First Time Home Buyer Program (the FTHB Program ); and WHEREAS, the Agency s advisors, Urban Futures, Inc., have conducted a focused assessment of the interest and capabilities of prospective housing operating entities that could be of assistance to the Agency in operating the FTHB Program; and WHEREAS, the Housing Authority of the City of San Luis Obispo (the HASLO ) has been identified as an entity capable of administering the FTHB Program; and WHEREAS, under the Professional Services Agreement approved on July 1, 2008, HASLO agreed to administer the FTHB Program consistent with the terms of the attached Professional Services Agreement; and has done so; and WHEREAS, the Agency and HASLO are desirous of extending the term of the Agreement to June 30, 2009; and RDA Agenda Item: 6.J Page 4

5 WHEREAS, the need for affordable housing units within the City of Pismo Beach is great and all prerequisites to the adoption of this Resolution have been satisfied. NOW, THEREFORE, BE IT RESOLVED by the Pismo Beach Redevelopment Agency as follows: SECTION 1: The facts set forth above in this Resolution are true and correct. SECTION 2: The attached Amendment No 1 to the Professional Services Agreement with the HASLO for the administration of the FTHB Program is approved. SECTION 3: The Executive Director is authorized to execute the attached Amendment No 1 to the Professional Services Agreement with the HASLO for the administration of the FTHB Program on behalf of the Agency. SECTION 4: This Resolution shall take effect upon the date of its adoption. UPON MOTION OF Boardmember seconded by Boardmember the foregoing resolution was passed, approved and adopted by the Redevelopment Agency of the City of Pismo Beach this 21 st day of April 2009, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Boardmembers: Boardmembers: Boardmembers: Boardmembers: Approved: Attest: Mary Ann Reiss Chair Lori Frontella, MMC Agency Secretary RDA Agenda Item: 6.J Page 5

6 Amendment No. 1 Agreement Between the Pismo Beach Redevelopment Agency and the Housing Authority of the City of San Luis Obispo for Professional Services to Administer the First Time Home Buyer Program This Amendment No. 1 is made and entered into by and between the Pismo Beach Redevelopment Agency and the Housing Authority of the City of San Luis Obispo Wherever there may be conflict between this Amendment and the subject Agreement, this Amendment No. 1 shall prevail. On Page 2 of the Agreement, In Section 3. Term of Agreement: Subsection (a) shall be amended to read: (a) the Term of this Agreement shall be July 1, 2008 through June 30, 2009 (the Term ). On Page 11 of the Agreement, in Exhibit A WORK SCOPE In Section III. Term of Agreement: shall be amended to read: The Term of this Agreement shall be July 1, 2008 through June 30, Agreed: The Pismo Beach Redevelopment Agency By: Executive Director Date Agreed: The Housing Authority of the City of San Luis Obispo By: Executive Director Date RDA Agenda Item: 6.J Page 6

7 Page 7

8 Page 8

9 Page 9

10 Page 10

11 Page 11

12 Page 12

13 Page 13

14 Page 14

15 Page 15

16 Page 16

17 Page 17