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HomeMy WebLinkAboutItem 4.6 - 3502 Dublin Home Rehabilitation Grant Program Gu (2) Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: December 1, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: City of Dublin Home Rehabilitation Program Prepared by: Jim Bergdoll, Senior Planner, and Kristie Wheeler, Assistant Community Development Director EXECUTIVE SUMMARY: The City Council will consider approval of the City of Dublin Home Rehabilitation Grant Program. The proposed Program would provide grants to assist qualifying low-income households to maintain their homes in a safe, livable condition and to prevent neighborhood blight. STAFF RECOMMENDATION: Adopt the Resolution Approving the City of Dublin Home Rehabilitation Program, and approve the budget change. FINANCIAL IMPACT: Staff proposes allocating $25,000 of the City’s Affordable Housing Fund annually for the proposed Home Rehabilitation Grant Program. In future years, Staff will look for other funding sources to offset the allocation of Affordable Housing Funds to support the grant program. Administration of the proposed grant program can be completed with existing Staff resources. DESCRIPTION: Minor home rehabilitation grants and home improvement loan assistance are available to low-income households through existing Alameda County programs. However, these programs have limitations, and there are instances where a homeowner may not be eligible for or able to take advantage of a County program. Please refer to Attachment 3 for a description of the existing County programs. To fill this gap, Staff is proposing a Dublin-based Home Rehabilitation Grant Program for low-income homeowners. Proposed Dublin Home Rehabilitation Grant Program The goal of the proposed Dublin Home Rehabilitation Program is to provide supplemental assistance to homeowners that received a grant or loan through the County’s programs and need additional funding or were turned down because they Page 2 of 3 were not able to meet all of the County’s criteria. It is not Staff’s intent to provide a program in lieu of the County’s programs but in addition to it for special circumstances. On November 17, 2020, the City Council received a report on the proposed Dublin Home Rehabilitation Grant Program and directed Staff to formally prepare the Program for their consideration. The draft Program and related guidelines are provided below and included as Exhibit A to the Resolution. Program Overview The City of Dublin’s Home Rehabilitation Grant Program provides financial assistance to qualifying homeowners to maintain their homes in a safe, livable condition and to prevent neighborhood blight. The goal of this program is to provide supplemental assistance to homeowners that may have received a grant or loan through existing Alameda County programs and need additional funding or were turned down because they were unable to meet all of the County’s criteria. The Home Rehabilitation Program provides two types of grants: • Rehabilitation Grants: This program provides grants of up to $5,000 to eligible homeowners to increase the safety and energy efficiency of their homes, construct accessibility improvements, and/or to rehabilitate and improve electrical, plumbing, roofing, and other similar improvements as determined by the Community Development Director to ensure safe and livable conditions. • Beautification Grants: This program provides grants of up to $5,000 to eligible homeowners to improve the exterior appearance of their homes and prevent neighborhood blight such as exterior paint or removal of overgrown vegetation, and other similar improvements as determined by the Community Development Director to reduce and prevent neighborhood blight. Program Eligibility In order to be eligible to receive a Rehabilitation Grant or Beautification Grant, the applicant must meet all of the following requirements: 1. Lives in the property as a primary residence and holds title to the property where the improvements are to be performed. 2. Has household income that does not exceed 80% of area median income (AMI) currently and for the last two years. 3. Has no more than $150,000 in assets not including the home’s value. 4. Has an approved application for an existing Alameda County home repair grant or loan program and requires additional funding to complete the scope of the project or has been determined to be ineligible for those County programs. 5. Has not received the same grant type from the City of Dublin within the last two years. Under special circumstances, the City Manager may make exceptions to the above requirements. Page 3 of 3 Application Process 1. Homeowner shall submit a complete grant application and such supporting materials as required by the Community Development Director to determine eligibility along with at least three bids from licensed contractors for the proposed work. The bid selected by the homeowner shall not exceed the average cost of all bids, unless approved by the City. Homeowners in one of Alameda County’s existing repair programs may submit a copy of their approved County application and approved contractor’s scope of work and cost estimate, and documentation of the County’s approval in lieu of three bids. 2. Applications will be reviewed on a first-come-first-served basis and will be prioritized, if necessary, based on the type of grant being requested and funding availability. For example: grants for health and safety will be prioritized over grants for beautification. 3. Approval of the grant application would create a Grant Agreement between the City of Dublin and the homeowner receiving the grant. 4. If approved, grant payments will be made directly to the contractor once the applicant submits a final bill and evidence that the work is completed. ENVIRONMENTAL REVIEW: The City of Dublin Home Rehabilitation Program is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) in that future projects funded by the Program would involve minor repair and maintenance of existing homes involving no expansion of use. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Approving the City of Dublin Home Rehabilitation Grant Program 2. Exhibit A to the Resolution - City of Dublin Rehabilitation Grant Program 3. City Council Staff Report dated November 17, 2020 4. Budget Change Form Reso No. XXX-20, Item X.X, Adopted 12/1/2020 Page 1 of 2 RESOLUTION NO. XXX - 20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE CITY OF DUBLIN HOME REHABILITATION GRANT PROGRAM WHEREAS, on November 17, 2020, the City Council received a report on a proposed City of Dublin Home Rehabilitation Grant Program (“Program”) and directed Staff to bring back an item to approve the Program with prepared guidelines for implementation; and WHEREAS, at the aforementioned meeting, the City Council recommended an initial appropriation of $25,000 from the City’s Affordable Housing Fund to fund grants for the Program; and WHEREAS, the City of Dublin’s Home Rehabilitation Grant Program would assist low- income households to maintain their homes in a safe, livable condition and to prevent neighborhood blight with the goal of providing supplemental assistance to homeowners that may have received a grant or loan through existing Alameda County programs and need additional funding or were turned down because they were unable to meet all of the County’s criteria; and WHEREAS, on December 1, 2020, the City Council considered the proposed Program and made the finding that it is consistent with the designated purpose of the Affordable Housing Fund in that the repair of housing owned by low income residents has widely been found to be an important part of preserving affordable housing stock and, therefore, helps with the overall supply; and WHEREAS, Program is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) in that future projects funded by the Program would involve minor repair and maintenance of existing homes involving no expansion of use; and WHEREAS, a Staff Report dated December 1, 2020, and incorporated herein by reference, described the Program and its related guidelines for the City Council. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves the City of Dublin Home Rehabilitation Grant Program attached hereto as Exhibit A to this Resolution. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon its passage and adoption. PASSED, APPROVED, AND ADOPTED this 1st day of December 2020, by the following vote: AYES: NOES: ABSENT: Reso No. XXX-20, Item X.X, Adopted 12/1/2020 Page 2 of 2 ABSTAIN: ______________________________ Mayor ATTEST: ______________________________ City Clerk Exhibit A to Resolution XXX-20 City of Dublin’s Home Rehabilitation Grant Program Program Overview The City of Dublin’s Home Rehabilitation Grant Program provides financial assistance to qualifying homeowners to maintain their homes in a safe, livable condition and to prevent neighborhood blight. The goal of this program is to provide supplemental assistance to homeowners that may have received a grant or loan through existing Alameda County programs and need additional funding or were turned down because they were unable to meet all of the County’s criteria. The Home Rehabilitation Program provides two types of grants: • Rehabilitation Grants: This program provides grants of up to $5,000 to eligible homeowners to increase the safety and energy efficiency of their homes, construct accessibility improvements, and/or to rehabilitate and improve electrical, plumbing, roofing, and other similar improvements as determined by the Community Development Director to ensure safe and livable conditions. • Beautification Grants: This program provides grants of up to $5,000 to eligible homeowners to improve the exterior appearance of their homes and prevent neighborhood blight such as exterior paint or removal of overgrown vegetation, and other similar improvements as determined by the Community Development Director to reduce and prevent neighborhood blight. Program Eligibility In order to be eligible to receive a Rehabilitation Grant or Beautification Grant, the applicant must meet all of the following requirements: 1. Lives in the property as a primary residence and hold title to the property where the improvements are to be performed. 2. Has household income that does not exceed 80% of area median income (AMI) currently and for the last two years. 3. Has no more than $150,000 in assets not including the home’s value. 4. Has an approved application for an existing Alameda County home repair grant or loan program and requires additional funding to complete the scope of the project or has been determined to be ineligible for those County programs. 5. Has not received the same grant type from the City of Dublin within the last two years. Under special circumstances, the City Manager may make exceptions to the above requirements. Application Process 1. Homeowner shall submit a complete grant application and such supporting materials as required by the Community Development Director to determine eligibility along with at least three bids from licensed contractors for the proposed work. The bid selected by the homeowner shall not exceed the average cost of all bids, unless approved by the City. Homeowners in one of Alameda County’s existing repair programs may submit a copy of their approved County application and approved contractor’s scope of work and cost estimate, and documentation of the County’s approval in lieu of three bids. 2. Applications will be reviewed on a first-come-first-served basis and will be prioritized, if necessary, based on the type of grant being requested and funding availability. For example: grants for health and safety will be prioritized over grants for beautification. 3. Approval of the grant application would create a Grant Agreement between the City of Dublin and the homeowner receiving the grant. 4. If approved, grant payments will be made directly to the contractor once the applicant submits a final bill and evidence that the work is completed. Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: November 17, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: City of Dublin Home Rehabilitation Program Prepared by: Kristie Wheeler, Assistant Community Development Director EXECUTIVE SUMMARY: The City Council will receive a report on a proposed City of Dublin Home Rehabilitation Grant Program and provide direction. The proposed program would include grants to assist low-income households maintain their homes in a safe, livable condition and to prevent neighborhood blight. STAFF RECOMMENDATION: Receive the report and direct Staff to prepare a Home Rehabilitation Program for consideration by the City Council. FINANCIAL IMPACT: If the City Council provides direction to implement the proposed Home Rehabilitation Grant Program, Staff recommends allocating $25,000 from the City’s Affordable Housing Fund to fund the program. DESCRIPTION: Minor home rehabilitation grants and home improvement loan assistance are available to low-income households through existing Alameda County programs. However, there are instances where a homeowner may not be eligible for or able to take advantage of a County program. To fill this gap, Staff is proposing a Dublin-based Home Rehabilitation Grant Program for low-income homeowners in Dublin. Existing County Programs The following provides a summary of existing Alameda County home rehabilitation programs available to Dublin residents: • Alameda County Healthy Homes Department Minor Home Rehabilitation Program: This program provides grants of up to $3,000 to low-income homeowners for minor plumbing, carpentry, and electrical repairs and can be used for railings, grab bars, toilets, water heaters, doors, locks, and more. Page 2 of 3 Households earning up to 80 percent of area median income (AMI) are eligible and grants are available once every two years. • Renew Alameda County (AC): Renew AC is a home improvement loan assistance program for low-income homeowners throughout the County. Renew AC aims to help keep existing homeowners in their homes and maintain existing housing stock in a safe, livable condition. To qualify, applicants must own and live in an insured Alameda County home, have an annual income of no more than 80 percent AMI, have no more than $150,000 in assets, have a loan to value of no more than 90 percent including the Renew AC loan, and have only one existing lien on the home. Renew AC is an Alameda County Housing and Community Development Department program that is administered by Habitat for Humanity East Bay/Silicon Valley, and funded by Alameda County taxpayers who approved the Measure A1 Housing Bond in November 2016. Proposed Dublin Home Rehabilitation Grant Program The goal of the proposed program is to provide supplemental assistance to homeowners that may have received a grant or loan through the County’s programs and need additional funding assistance or were turned down because they were not able to meet all of the County’s criteria. It is not Staff’s intent to provide a program in- lieu of the County’s programs but in addition to it for special circumstances. To be eligible for the proposed program, the following criteria would need to be met: • Applicant’s household income could not exceed 80 percent AMI; and • Applicant would be required to live in and hold title to a home in Dublin; and • Applicant has applied for assistance through the County and either requires additional assistance or has been turned down. The following is an overview of the proposed rehabilitation grant program: • Rehabilitation Grants: This program could provide grants of up to $5,000 to eligible low-income homeowners to increase the safety and energy efficiency of their homes, construct accessibility improvements, and/or to rehabilitate and improve electrical, plumbing, roofing, etc. to ensure safe and livable conditions.. • Exterior Clean-Up/Paint Grants: This program could provide grants of up to $5,000 to eligible low-income homeowners to improve the exterior appearance and quality of their homes and prevent neighborhood blight such as exterior paint or overgrown vegetation removal. Funding The proposed Home Rehabilitation Grant Program could be funded by the General Fund, Affordable Housing Fund, or possibly by Community Development Block Grant (CDBG) capital funds. The City’s Affordable Housing Fund (also known as the Inclusionary Zoning In-Lieu Fee Fund) accounts for money to be used by the City for the purpose of providing very-low-, low-, and moderate-income ownership or rental housing in Dublin. The City Council could find that the proposed Home Rehabilitation Grant Program is consistent with the designated purpose of the Affordable Housing Fund. Repair of housing owned by low Page 3 of 3 income residents has widely been found to be an important part of preserving affordable housing stock and, therefore, helping with the overall supply. Other cities, including Livermore and Pleasanton, use their affordable housing funds for home repair programs. Dublin receives CDBG funds through the Urban County Program administered by Alameda County. The Urban County Program includes an opportunity to apply annually for funds for various capital projects. These funds earmarked for capital projects could be a funding source for Dublin’s Home Rehabilitation Grant Program in future years. However, these capital funds are subject to change and may not be available every year. Additionally, the rules and regulations that come with this funding make it inefficient to use in small increments, require environmental clearance for construction projects of any size, trigger Davis-Bacon wages, and require extensive documentation and compliance with many other federal standards. A program using these funds would likely take additional time to establish and necessitate professional technical assistance with the program administration at a cost of 20-30 percent of the grant amount. Given the limited scope of the proposed program, the assistance already provided by the County, and the complications and uncertainty associated with the CDBG capital funds, Staff recommends an annual allocation of $25,000 from the City’s Affordable Housing Fund for the proposed program. Staff is seeking City Council direction on the proposed Home Rehabilitation Grant Program concept, and concurrence with the types of grants, grant amounts, and funding source. If the City Council would like to pursue this program, Staff will prepare guidelines for the program and return for formal adoption. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: None. Budget Change Reference #: From Un-Appropriated Reserves X Budget Transfer Between Funds From Designated Reserves Other Account Amount Account Amount 2901.5701.64011 $25,000.00 12/1/2020 Posted By:Date: As Presented at the City Council Meeting **********Finance Use Only********** CITY OF DUBLIN Grants to assist qualifying low-income households maintain their homes in a safe, livable condition and to prevent neighborhood blight. REASON FOR BUDGET CHANGE FISCAL YEAR 2020-21 BUDGET CHANGE FORM EXP: Affordable Housing Fund - Housing Program - Grant City Council's Approval Required ATTACHMENT 3