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STAFFREPORT CITY CLERK
DUBLIN CITY COUNCIL File # ^[~]~[~]-',~,~
DATE: December 21, 2010
TO: Honorable Mayor and City Councilmembers
FROM: Joni Pattillo, City Manager
SUBJE • Authorization to negotiate and execute a Joint Agreement with the Cities of
Livermore, Pleasanton and San Ramon and the Town of Danville to provide a loan
of up to $50,000 to the Tri-Valley Housing Opportunity Center to address
shortages in short-term operating expenses.
Prepared By: John Lucero, Housing Specialist
EXECUTIVE SUMMARY:
Staff is requesting City Council authorization to enter into negotiations with the Cities of
Livermore, Pleasanton and San Ramon and the Town of Danville to provide a loan to the Tri-
Valley Housing Opportunity Center (TVHOC) for expenses associated with the operation of the
Center. The maximum loan funding from all agencies combined would be $125,000 and the
City of Dublin maximum contribution would be $50,000. Each City/Town that enters into the
Agreement would provide a proportional share of funding to the Center to be allocated over the
remainder of Fiscal Year 2010-2011 while the TVHOC completes its restructuring and secures
additional outside resources.
FINANCIAL IMPACT:
City of Dublin funds would come from the Affordable Housing Fund (#2901). The amount
provided will be based on the number of cities participating with each city providing a
proportional share of TVHOC's request. The total loan amount requested from all five
jurisdictions is $125,000. If all cities participate, Dublin's share would be $25,000. If fewer cities
approve the joint agreement the remaining cities' proportional share would increase resulting in
a larger portion of the loan being provided by those cities, including the City of Dublin. In any
event, it is anticipated that the City of Dublin's share would not exceed $50,000. This loan was
not anticipated in the Fiscal Year 2010 - 2011 budget, and therefore an additional appropriation
is recommended from Affordable Housing Fund reserves.
RECOMMENDATION:
Staff recommends that the City Council: 1) authorize the City Manager to negotiate and execute
a Joint Agreement with the Cities of Dublin, Livermore, Pleasanton and San Ramon and the
Town of Danville to provide funding in an amount not to exceed $50,000, for the TVHOC to
cover operating expenses for Fiscal Year 2010 - 2011; and 2) approve a Budget Change.
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Submitte by: Reviewed by: Reviewed by:
Community Development Administrative Services Assistant City Manager
Director Director
Page 1 of 3 ITEM NO. b ~..
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BACKGROUND:
The Tri-Valley Housing Opportunity Center (TVHOC) is a cooperative housing resource center
involving the active participation of the Tri-Valley Cities (Danville, Dublin, Livermore, Pleasanton
and San Ramon). Over the last five yea'rs, the TVHOC has coordinated homebuyer programs
including Homebuyer Education Counseling, Down Payment Assistance Programs, Lease
Purchase Programs, and Inclusionary Housing Programs through its main office in Livermore
and community outreach forums in the Tri-Valley Cities.
By consolidating the affordable housing service needs of the five jurisdictions into the TVHOC,
each jurisdiction has realized administrative cost savings and more efficient services are being
provided to each community. People looking for housing in the Tri-Valley are able to go to a
single location for housing-related information that encompasses the entire region. With the
creation of this regional public/private clearinghouse, local jurisdictions are able to leverage their
scarce housing resources enabling them to meet a larger percentage of the public's housing
need. Working regionally, the TVHOC provides a one-stop-shop reaching over 260,000 people
in the Tri-Valley Area and assures that the full value of current programs available through
private lenders, state and federal programs are realized.
By working with local lending institutions, title companies, real estate associations and their
affiliate organizations, the TVHOC provides information regarding private sector lender
information, funding sources, and homebuyer training - helping to match those in need with the
programs and services that benefit them most. ,
The TVHOC has recently expanded its services to include foreclosure and mortgage
restructuring assistance and the demand for these services has increased dramatically over the .
last several years. Funds provided by the jurisdictions would support the Center's efforts in
reaching out to Tri-Valley residents in need of this service.
ANALYSIS:
Due to internal changes in the organization resulting in a need to restructure financially, the
TVHOC has been unable to meet its short-term administrative and operating obligations. To
overcome this gap, the TVHOC is requesting $125,000 in financial support, in the form of a loan
from the Cities of Dublin, Livermore, Pleasanton, San Ramon and the Town of Danville to
address short-term cash flow and operating deficits. These funds would be used to help
stabilize and sustain operations of the TVHOC as it completes its restructuring and long-term
asset development plans.
TVHOC has a financial plan in place that Staff believes would allow the organization to get back
on its feet and continue to provide these vital services to our community. If approved, funds
would be placed in a reserve account that the Center would draw down during the balance of
Fiscal Year 2010-2011 under the oversight of City Staff to fill funding gaps and to leverage other
federal, state and private sources. These funds are in addition to funds already committed by
the Cities (Dublin's contribution in FY 2010-11 is $25,000). Funds drawn from the reserve will be
used only after every effort is made to secure revenues by other means, including grant
procurement and increasing revenues from services. The TVHOC would repay the Loan
through the provision of in kind services to the jurisdictions rather than a cash repayment.
During this restructuring period, the TVHOC's interim management, supported by its Board of
Directors, will seek additional ongoing financial support through community partners, grant
Page 2 of 3
writing, increased client services and a fundraising campaign. The TVHOC Board has enlisted
the support of the Tri-Valley Community Foundation, which has offered to provide a wide variety
of resources including: technical assistance, grant writing support and aid in the development of
a strategic plan, management analysis, business plan and fundraising plan. With the
Foundation's support, the Center has received a commitment of $25,000 in grant funds from
two local foundations.
In addition to directing the City Manager to negotiate and execute the above-mentioned Joint
Agreement, the City Council will also need to approve a budget change in the amount of
$25,000 (Attachment 1).
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None
ATTACHMENTS: 1. Budget Change
Page3of3
CITY OF DUBLIN ~~~ i
BUDGET CHANGE FORM FY 2010 / 2011
CHANGE FORM #
New Appropriations (City Council Approval Required): Budget Transfers:
X From Unappropriated Reserves (*) __ From Budgeted Contingent Reserve (1001.1901.81101)
(Affordable Housing Fund)
From New Revenues
Other
Signature
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Name: EXPENSE - AFFORDABLE
HOUSING FUND - Housing Dept -
Housing Development Loan
GL Account # 2901.5701.66102
$ 50,000
REASON FOR BUDGET CHANGE ENTRY: As presented to the City Council on December 21, 2010,
the City along with neighboring agencies are proposing to provide an operating loan to the Tri-Valley
Housing Opportunities Center. The item proposed that the City Manager be authorized to negotiate the
loan terms up to a maximum loan amount of $50,000.
Fin Mgr/ASD: ~~ ~~:a~ Date: ~~ ~ fl i Z4~~
Signature
Within Same Department Activity
__ Between Departments (City Council Approval Required)
City Man er: . Date: ~ !4 ~~
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Posted By
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Date:
Date:
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ATTACHMENT 1
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