HomeMy WebLinkAbout1989 Resolution No. 060RF.3JWl'ICl'l 00. kt)
SDUES OF 1989
A RESOLl1l'ICl'l AlmQUZm::; THE CITlt' OF ~. THIOXiH ITS DEPAR'IHDn' OF
CDMJNITlt' DEVE!.OPMENI', 'IO FILE AN APPLICAXICl'l FCll THE FISCAL YEAR 1989 RmrAI.
REWIBILITATICl'l PRO.RAM FUNDS Fell. THE l[X)Sm::; REHABILITATICl'l PROORI\M.
WHERE/IS, the Rental Rehabilitation Program provides grants to local
governrrents to subsidize the rehabilitation of rental housing uni ts; and
WHEREAS, to ca,pete in the Rental Rehab ilitation Program, l ocal
governrrents rrust sul:Jni t an application; and
WHEREAS, the Depart!rent of cannunity Developrent desir eR t _, apply for
these funds for the Housing Rehabilitation ·rogram;
l'DI, THEREFORE, BE IT RESOLVED BY THE CITlt' CXXIOCIL OF THE CITlt' Of
EN'iLEW:XlC, C!JJ/JAAOCJ, THAT:
Section 1. '!be Department of CClmDJni ty Develcprent i :, her\>.by authorized
to file an application for the fiscal Year 1989 Rental RehabU!_•:at .ion ~'Ogram
to fund the Housing Rehabilitation Program for the City of :J.1gl,~,
Colorado .
Section 2. If awarded Fiscal Year 1989 Rental Re.habilitation Program
funds, the City will agree to follow a Tenant Assistance Policy a.,d will
develop an a ff irmative marketing strategy.
Section 3. The Mayor and City Clerk are authori zed to sign and attest
all necessary forms, docurrents, assurances and certifications for the Rental
. Rehabilitation Program for and on behalf of the City Council and the City of
Englewood.
AOOPl'ED AND APPRO\/Fll this 20th day of Noverber., 1989 .
At~: ~ l:1/}T{;~<<✓ ,ff ~u'
Patricia H. crow, City Clerk
~J.";-4
r , Patricia H. crow, City Clerk for the City of Englewood, Coloraoo,
hereby certify that the above is a true copy of Resolution No. 6,:2 , Series of
1989.
-~<{eta. ,ff <1-w
Patricia II. crow
DATE
November 20, 1989
INITIATm av
STAFF SOURCE
ISSUE/ACTION PROPOSED
COUNCIL COIIUIICATION
AGENDA ITEM
II (d)
SUBJECT
Department of Co11111unity Dev~lopment
Rental Rehabilitation
Program Application
Fiscal Vear 1989
Richa r d S. Wanush , Director of Co11111unity Development
Approve a Re solution author i zi ng staff to file an app 1 i cat ion of $100,000 for the
Fiscal Vear 1989 Rental Rehabil it ation Progra m funds . This will allow for the
rehabilitation of approximately 15 -!! renta l units scattered throughout Englewood .
-REVIOUS COUNCIL ACTION
The City Council has approved app l ications for the Ren ta 1 Rehabil Hat ion Program fo r
FYl986 and FYl987 .
STAFF ANALYSIS
Rent a 1 Rehabilitation Program funds wi 11 continue to improve existi ng r enta 1 hou s ing
sto ck through the Hous i ng Rehabil i tat i on Program .
BACKGROUND
The Rental Rehabil i tat i on Program i s de s igned to encourage the rehabilitation of
rental hou s ing which would be affordable to lower in come households . The program is
funded by the Colorado Divi s ion of Housing through the U.S. Department of Housing
and Urban Development (HUD). Th e objectives of Colorado's Rental Rehabilitation
Program are to :
e
I. Develop a program for rehabilitation of rental unit , at a reasonable cost to the
owner so that it becomes economically feasible to rehabilitate a building
wi t hout an excessive increase i n rental rates;
2 . Increase the availability of standard investor-owner rental un its that are
affordable to lower income persons, including units su i table for occupancy by
the hand i capped;
3. Minimize displacement of eligib le lower Income families living tn the
rehabtlttated units;
4 . Leverag e pri vale monies to f1 nance the rehabtl t tat 1 on of rent a 1 propert 1es ; and
S. Demonstrate how the rehabtl I tat ton of renlil 1 hous Ing un i ts for 1 ow and moderate
Income persons can be beneficial to the stabtl ization of a neighborhood .
The Englewood Rental Rehabilitation Program (RRP) provides financing in the form of
a de ferred payment loan to finance up to SO% of the cost of approved rehabilitation
pr ojec t ~. The RRP loan will be at a 3" simple Interest rate wtth the principal and
interest due tn a balloon payment 10 years after the l oan closing . The owner ts
responsible for secur i ng the required f i nancing to match the RRP loan . The Housing
Rehab Program's Bank Consort i um 1 tne of credit is an el tgible match ior the RRP
loan . The minimum RRP loan amount is $300 average per unit on a project basis with
the maximum amount set as follows :
I) efficiency unit -$5 ,000 ;
2) I bedroom unit -$6 ,500 ;
3) 2 bedr oom unit -$7,500 ;
4) 3+ bedroom unit -SB,500 .
All proj ects financ ed with RRP funds must be brought up to a mint mum housing qual t t y
standard . The entire City of Englewoorl ts de s ignated as the el tgible neighbor h~·,,J.
In the past, 34 rental units have been rehabil i tated wit h FV86 and FV87 Rental -
Rehab tl itatton Program fund s. The structures have ranged tn size from single l .. ,.,tly
uni ts to fourplex building s.
FINANCIAL
The City has budgeted appro ximately $78,000 to administer housing related activities
in 1990 in clud i ng th i s prog r am . Th e Ho sing Authority will prov i de admin i stration
and sup ervis ion .
RECOMMENDATION
Approve the Reso 1 ut i on autho ri zi ng t he Department r,f Comm•.'ntty Deve 1 opment to submit
an appli cation to the r.olorado Di vi sion of Housing for $10 0,000 fo r Fiscal Vear 1989
Ren t a 1 Rehabil itat ton ~·rogram Fun d,.