HomeMy WebLinkAbout0220.094•
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April 7. 1994
HONORABLE CITY COUNCIL
Palo Alto, California
Arnendmeht to the Fiscal Yeai' 1993/91\ Agl"eement with the Palo
Alto Housing Corporation t..2..J.n.~Me the Amount of Available
Qowu(,;neatioo by __ s.L.2.a.Q...~.a...780 and Approval of Related Budget
A!J\Qu<lme nt 01:!.!l..rJ.w.=
Membel"S of the Council ~
REPORT IN BRIEF
Council action is requested to approve the attached amendment to
the agreement \'lith the Palo Alto Housing Corporation (PAHCl and
the attached Budget Amendment Ordinance. The amendment would
provide an additional $4,180 for FAHC's expenses related to
preserving hrastradero Park Apartments for the City's affordable
nousing stock. The additional funding is available from the
Community Development Block Grant (CDBG) HOl..lsing Development
Plmd, which was approved by Council on t,!ay 1'" 1993 r Resolution
No. 7186.
BlICKGROUND
The current PAHC agreement r totaling $88,000, provides a maximum
of $10,000 for tenant assistance and consulting activities
related to the preservation of Arastradero Park Apartments, under
the procedures deflcribed in the Department of Housing and Urban
Development's c.nm) Low Income Housing Preservation and Resident
HQmeownership Act of 1990 (I,HWRHA or Title VI). PAHC has been
working with the tenants to assist them in understanding and
participating in the Title VI process.
On January 7, 1994, the owner of the Araetradero Park Apartmento
filed a Second Notice of Intent to Sell the complex. This date
establishes the beginning of a six month time period, during
which a tenant-baaed entity has the exclusive rightB to negotiate
a purchase contract with the seller. The tenants and PAHe are
currently in the process of forming a nonprofit Community Based
Organization (CBO) for the purpose of submitting a purchase
offer. PARe expects to incur significant legal, consulting and
staff time before the end of this fiscal year securing site
control on behalf of the new CBO, Although PAHC had expended
only $1,000 of the Arastradero Park contract dollars as of
December 31, 1993: the remaining $9,000 in their existing
CMR:220:94
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'contract is n9t expected to be: adequate. PAHC has applied for a
Technical Aa.si6tance Grant. {TAO) f:rom Hut'l. but expenses incurred
prior to grant award are not eligib10 under the grant. PARe has
a1ao applied for up to $400,000 1,\ i99<l/9S CDBG funds t.:or
acquisition and l"ehabilitation costs for the complex. If the
C,~ty Council decides t.o allocate ,,~y 94-95 funds for the project,
they will be available only fox expenses incurred after July 1~
1994_
On 'f'~b~uary 24, 1994, PNIC requ'ested that the City amend the
current contr<l.ct to provide fundo for additional legal.
consulting and staff expenses not reimburoable from the HUD
-technical Assistance Grant (A.ttachment 1). At theil' l'egularly
Dche~uled rt;ee:~in9 of Febl'uat:y 24.. 1994, the CDBG Citizens
Advisory CCm!'1\itt.ce unanimously ..... c.ted to endorse: PAHe's reque:at
for additioiHlLl funding for the .l\1::astrCldero park Project.
/lOl)SING I)EI'ELOPMmn-1'Ul1D
On Hay 1?~ 19'93, the palo l\ltQ City Council adopted Resolution
118~ app:r.xwing the use of COSG flmds for fisc,)l year 1993/94 and
tluthot"izing fundIng all.ocationH to the New Housing Development
,"und ill the .1r:::-OI.Hlt of S~56.117. 'The fund has an unencumbered
halance of $4. "184 .,vai lable fOl" programming to housing related
activitieo.
ENVIRONNEu-CAL REVIE~
The pt"ovlsion of COSO funds f.or pr.c-nevelopl"T'.ent conts is exempt
from CEQA 'mdel." Secti.oJl 15?-62 of the Cf.;.QA Guidelines and is
exempt from NRPA under 24 CFI~ S8 ,:}4 {6) •
Staff l"ecore."',enda that tho City Council approve the attached
Budget ~~ndmeJlt Oxdinanco and c.pprovc and authorize the Jo1ayor to
c?CC3:cute t.)le attached Amendrr.ent No. 1 to the agreement with PAHC
increasing the agreement's budget by $4,780. for a total of
$92,780 fo~ f.iDcal year 1993-1994_
~'M' lNG~.·
ManagelLJ
CMR,220:94
KENNETH R. SCHREIBER
Di.rector of Planning and
Community Environment
4/7/94
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Attachment 1: Letter dated February 24, 1994 frem the Palo Alto
Housing Corpora~ior.
Attachment 2: Budget Amendment Ordinance
Attachment 3: Amendment No~ 1 to Contract No. (."40-15004
CC: Marlene Prendergast, Executi .... e Di:r:ec.tor. Palo Alto Housing
Corpol'at ion
CDBG, Citizens Advisory Commit.tee
Related t~s; 342:93; 362:93
CMR;220:94 4/7/94
Page 3
Palo Alto Housing Corporation
February 24, 1994
, Suzann e Richard s
CDnO Coordinator
City of Palo Allo
P. O. Box 10250
Palo Allo, CA 94303
Re: CDB~ Funding for Acquisition of ArrlSlradero Park Apartments
Dear Su 1.3.)1 ne;
The Palo Alto Housing Corporation (PAHC) requests thai )'OU begin ttle ne ... ·cswy
prOCNS to allocate Community Development Block Grant funds remaining for 199)~94
to the existing PAHC contract with the City, to be used fDt er.arl)' pre-3<:quisitlon
activities for Araslradero Park Apartnlenls. We \Jnderstand this amount to be jl15t
under $5000.
The ownt:r of Arastradero Park Apartments has fired a Second Notice (If Intent to sell
the complex under LHIPRHA. the applicable federallegishHion. PAHC would Iil.:c, 10
move expeditiously. as we are a priority purchaser with tenant tlldorsement. This
enables us to make a purchase offer within the first six mOnlh5. of a long and involvN
process.
PAHC is currenlly filing an applLcalioll for a Technical Assistance Grant (rAG) fmm
HUD, under which we hope to be awarded up to S125~OOO for required pre
development activities, such as forming a communit), based organization (CRO)' to own
the complex, perfQnning inspections, negoHating a: purchase agreement, and developing
a plan of action 'for rehabjlitation. Howe .... er, Ihere will be a gap period before lhe
TAG js awarded when PAne mU5.t incur some staff, Jegal and co.n5.ulting expeme-s.
~hese expenses are not etigible for reimbursement retroactivel), under the HUD grant.
Awaiting HUD approval may take as long as three. months. The $5000, used .
judiciously !n combination with our remaining contract amount of $9000 for working
wilh Araslradero Park tenants, should cover Ihese early expcnse.s.
Thank you for your assistanc.e.
process this request.
Sincerely,
~
Marlene H. Pren dergast
Execulive Director
Please lei me know what inforrnalion you need 10
540 (owper Street, Suite G,Palo Allo. California 94301, (415) 321·9709
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ORDINANCE I/O.
ORDINANCE OF THE COUNCIL OF TlIt CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1993-9~
TO TRANSFER COMMUNITY DEVELOPMENT eLOCK GRANT (COBG) FUNDS
FROM NEW HOUSIIIG DEV£LOP~IENT PROGRAM
TO TH,~ PALO ALTO HOUSING CORPORATION CorlTRACT
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the city of :palo Alto, thE! Council on JUlie
21, 1993 did adopt a budqet for f.iscal yaar 1993-94; lind
WHEREAS., the City of Palo Alto supports the retention of
affordable housing units in the CitYi and
WHRREAS, the Palo Alto Housing corporation
attempting to purchase the Arastradero Park Apartmento
the Cityls affordable housing stock; and
(PMC) is
to preserve
WHEREAS, PAliC r.equires an additional $4,780 for pre-
devplopment activities related to the purchase of the Arastr~dero
Park Apartments., which is available in the New Housing Development
Program;
NOW, TREREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTIQtL...1. The sum of Four Thousand Seven Hundred Eiqhty
Dollars ($4,780) in CDBG Funds is hereby transferred from the New
Housing Development Program to the Palo Alto Housing corporation
(PAHe), ,dthin the CDBG fund, increasing PANe's contra.ct from
$88,000 to $92,780.
~. This transaction will have no impact on Reserves.
~I2H-1, As specified in Section 2.28.080(c) (1) of the Palo
Alto Municipal· Code, a majority vote of the City cou!lcil is
required to adopt this ordinance.
~IQH-i. The Council of the City of Palo Alto hereby finds
that the enactment of this ordinance is not a project under the
California Environmental Quality Act and, therefore, no environmen
tal impact aSGeSGment is necessary.
SECTION 5.
Municipal Code,
adoption.
As provided in Section 2.04.375 of the Palo Alto
this ordinance shall become effective upon
INTRODUCED ANO PASSED:
AYES,
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ABSTmTIONS,
JlBSmT,
A'rt8ST,
APPROVED AS TO FORH:
APPROVED:
c"I"t"'Y;--;'K~.n"'a"'9::-:·:::r:-----------
DIrector or-PlannInq and
Co~unity Developmont
,~.u
APPROVED,
Mayor
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~,"c·,;;"?,,[~,'\:,.i."';,,,:·,,·;;· .~~~~~'=-~_"~~~'.'; ,:.
AIIEIIlJIOOIT NO. ~ TO CONTRACT NO. Ct04500t
BRTIIlIBN taB CIT\' O}' PALO M,TO AND
TIIB PIILQ ALTO HOUSING CORPORATION
THIS AMRh'D}[R11"T No. 1 to Contract No. C404S004 is made. and
entel.·ed into thie day of _' , 1994 , by and between
the CITY OF PAW -ALTO: a IU"niclp'l corporation of Cal ifornia.
hereinaftol" reffJ'rred to ao • CITY , -and the PALO ALTO HOUSING
CORPORATION (Taxpayer IdentHication l"mIDer ,I. a
California nonprofit corpotation, with offices at 540 Cowper
Street; Suite G. Palo Alto, eli 94301, hereinafter :"'efen:ed to as
• CONTRAr:TOR -;
WH8R&AS, Contract No. C404500-4 ~'a8 p:revlously ent.ered
into betw~~n CITY and CO~""fR.kC'roR for the provision of services
related to housillg {(H-pen;ons i'nd families of low, moderate and
middle income levels.i and
WHER&A.S, the P:i\rtiea P.\;l.Y agree to amend said agn~ement to
from time to time;
NOW, TIlBREFOR3. in cons1de:r:atlon of their mutual
covenants, the parlies hereto agree a~ follow8:
~lLl. Paragraph Sib) of Contract I/o. C4045004 is
hereby amended to read as foll OW8:
• , • (b) (;9.(jJjle1!§J!.tiQll, CITY agrees to compensate
CONTRACTOR for the full performanc~ of its services
under ttda Agreotr..ent in (';ccordance with Bxhibit
-8-, in a totl) 1 sum not to exceed Nil1et.y Two
Thousand Seven Hundred Righty Dollars ($92.780).
Such SUlTl 1s financed by Porty Two Thousand Seven
Hundred Right)' Dollars ($42,780) in C[)W funds and
!'Uty Thousand Dollars ($50.000) in CITY Housing
Re8exve funds. P\lllds corrmltted under the CDOO
program are contingent upon CITY receiving the
intended appropriatIon from Wt..fD ••
BRCXTON 2. Exhibits ~A· and -8-of Contract No. C404S004
are herehy ainen~ed to t~ead as set forth in the following eXhibits
attached too this Amendment and incorporated herein by this
reference:
a. Exhibit ·A-entitled -1993-1994 PROGRAH 'iSAR SCOP1~
OF SERVICRS',
b. Exhibit 'B' entitled '1993'1991 CONTRIICT BUDGET',
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aE.crI~. Except as herein n-ooified, all other
pro,,'isions of and exhibits to ~aid agl'eement shall rem.."tln in full
force and effect.
XN WITNESS h'lIBREOF, the pal"ties h~reto havE:' execut€d this
Amendment the day and year firBt above written.
A'l'fSST:
City ClerK
APPROVED AS TO FORM:
senior Asst. City Attorn-e:y--
APPROVED:
City -Manager--------------
Director of Finance
Risk Manager ----
APPROVBD AS TO CONTENT:
Director of Planning and
Cornrnunity Emiironment
A~tachment:
CITY OF PALQ ALTO
Mayor
BXHIBIT 'A': 1993-1994 PROGRAM YEAR SCOPE OF SBRVICES
EXHIBIT 'B': 1993-1994 CONTRACT BIJJX1ET
9+0301:5 0020.312: 2
",,;+--•• ~.-'"'.,.
CBRUPlCATB OF ACIQIOWLEDOMENT
(Civil Code § 1189)
STATE OF .. ili4:fc"'~'< ~
COUNTY OF -Sanf~~ ___ . ___ )
, .;,.
On -mllNlh 0),19QQ , before rne,~rR..-'-" ~'lliilit~
::::===r--; ,a notary }2uhlic in and for said Coun~lly
appeared ,,'--rl1M If og fAenclvc....!last. __
• perhonally known to i(fJ {or proved to me on the baois of
:."a"t"i-::s"f"a::c"'tol.Y evidence) to be the person(s) whose name(s) is/are
subscrfbed to the wJthin i'fl8trum:e~n~t~,~======::::
.. -------------.-~-
and acknowledged to me that he/She/t-hey executedthe -same in his/
her/their authoriz£d capacity (iee) , and that by his/her/their
signature (3) on the instrument the person (8), or the entity upon
behalf of which the: person(s) acted, executed the in3trument.
WITNBSS my halld and official seal. r-c:!;::C"'"~-'::O~fI:::IC:::"'~L~WJ.~"""""
CMM£lA J.luctAN!
NoIOl"/ ~·Cd1'orT'k1
SANrA ClAM COONf"(
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EXHIBIT "N
PALO ALTO HOUSING CORPORATION
1993-1994 PROGRAM VEAR SCOPE OF SERVICES
,. C'.
CONTRACTOR shall foster and develop decent, safe and affordable housing benefilling
low and moderate income families, seniors, and the disabled in Palo Alia. 'To fulfill such
obiectives, CONTRACrOR shall perform the following services under this Agreement.
I. COMMUNITY DEVElOPMENT BLOCK GRANT ACTIVITIES
CONTRACTOR shall provide the following services in conformance with Ihe obieclives
and lequiremenfs of the federal Departmenf of Housing and Urban Developmenl under
Ihe Community Developmenf Block Grant (CDBG) Program and reimbursement for such
e_,penditur.s shall be from CDBG funds:
1. INFORMATION AND REFERRAL: Adrninistfative expenses to provide
CDBC income-eligible households with information regarding arfordabfe
housing options, advke on available, affordable andlor subsidized housing
unilS, counsel on eligible subsidy programs and available services, referral
to iocal agencies and service providers and/ on an as-needed basis, to sen1e
as ao advocate for individuals.
GOALS: Provide advice, counsel and information 10 low and
moderate income housing seekers. Coordinate
provision of social sClVices and serve as ilgen'Cies,
employers, landlords or neighbors.
ESTIMATE: $15,000
MEASURES: 1,800 phone calls
200 walk·in inquiries
900 informalion packels mailed
5 communicalions wjth other housing groups
2 conferences attended
6 households counseled
2. lOW INCOME HOUSING PRESERVA nON AND RESIDENT
HOMEOWNERSHIP ACr (1.1 HPRHA) TITlE VI TENANT ASSISTANCE:
Provide advice arid assistance to tenants in tedemlly subsidtlcd housing in
Palo Alto which is in danger of convMing 10 market rate developmenls.
GOAL #1: Counsel and advise tenants in Araslradero Park,
Sheridan Apartmenls, and Palo Alto Garden
Apartments of Iheir righls and the federal process
which musl be undertaken to preselVe their complexes
as fow income, affordable housing.
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COAL "1: Ar.stradero Pari<: Provide informalion and support 10
Arastradero Park tenanls during the inspeclion and
appraisal process under litle VI. Assist the tenants in
their decision of whelher Or nollo fo.m a legal
nonprofit entity to qualify as a priority purchaser and
on the fOIm of Ihal enlily. Complele a Tille VI
Technical Assistance e.anl application 10 HUD on
behalf of Ihe proposed tenanl based organizalion.
COAL '3: Afaslradeco Pitfk: Conduct pre-acquisition activities on
behalf of a Comm.mily Based Organizalion «80)
direcled low"ds execution of a HUD approved
purchase contrad. Activities include obtaining
n('ce~$aly consulting.. regal and technical assistance in
order to (orm a C601 submitting a purchase offer as a
'priority purcha>er and negotiating the terms of the
agfeement with the seller. conducting a financial
aoalysis of the acquisition. seeking applo~)[iate funding
sources and initialing pceparation of fh.e Plan of
Atlion.
ESTIMAT£: S 14,780
MfASURES: 35 ",nanl phone calls
10 meetings with lenants, consultants, HUD
1 Technical Assistance Grant to HUD
fOHnalion of nc' .... community based, nonprofit
enlity to acl as priority purchaser
Sutlmission of purchase offer
3. HOUSING D:RECTOR'(: Produce a comprehensive "Assisted HOllsing
Dire<;loIY' (or the City ofPa!o Alio,listing available affordable housing resources and
.proglams..
COAlS, Produce a direCiory which will provide ,/fOldable
housing seekers wilh an easy to read guide to Ihe
subs.idized housing units in Palo Alto; an explanation
of the various programs, waiting list and application
!'wcess, income limitations, etc.
[SnMAH; $6,500
MfASURfS: Research and publish a directory
1,000 prinled and distributed
Updale for second printing
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4. CDBG WCIBLE BMR ~ROGRAM: Administer ,.Ios and (e><lles of Below
Market Rate (BMR) unils fo( COBG eligible applicanls.
COALS: Provide assislance to COBG eligible housins seekers
in the BMR rental and homeo\""r'lt:-Iship prog",ms.
fSTIMAU: $6,500
MEASURES; 1 ><Ilos of ownership unilS
to fl2'ntal unils
Tol.1 CDBG budget is $42,760; (u,"\ds wilhin 'Clivil), are" are ",Hm.le; only and may
shift.
II. HOUSING RESERVE FUND ACIiVlllfS
CONTRACTOR shall pcovide the'(ollm'Jing S('ryjCM in (Qllforma:nc(' 'whh the obj('cliYes
and requiremenls of the Gty of Palo Alia Hou5-jng Rc-:.l?r\,(" Guid{"lines.~ and
reimbursement for such expenditures s.hall be (10m the Cif~"s I-Ious.ing R('$erve funds':
1. BMg SAlES AND RENTALS; for IlMR ,.Ies or rental units,
CONlRACrOR shali administer such s.ares or renlals as ... ·acarl{ies dictate-, in (ompliance
with Ihe City's BMR Program.
GOALS: In((ease the num'bcr of hous.ing opportunities (or moderate
income residents by admillish~ling Int' sales and (e'$are~ of the City~s
BMR homeownership and' {ental progro'tms. A(livili[>~ includeJ bur
are not tilnHed lo~ mainlai()ing waiting lIs.ts~ ad\'islng and counseling
houllng seekers, verifying applicant eligibility aod inconle (fileria,
and reporling loCily on proglam p.nicipalion.
fSTIMAT£: $50,000
TOTAL 1991-1994 CONTRACT BUDGET: $92,780
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EXHIBIT 'B'
PALO AI.TO HOUSING CORPORATION
1993-1994 CONTRACT BUOCn
rxp€nses Total PAHC Contract Ouoget Ho",ing Qe;J;!:lplim! Pmjec!e<JJlJldg!:t ~fv_ad; Bf~JY~.f!I.ru!
Salaries $187,320 16,800
Benefits 7,642 685
Payroll Taxes 14,989 t,345
Rent 27,084 2,429
Insurance 2,310 \ , Audit and Legal 7,985
Phone 4,536
POjiage 3,150
Staff Development 3,675
Travel 2,310 4,677
Office Supplies. 9,975
Maintenance and Repairs 2,100
<quipment 6,510
Depec1ation 4,725
Miscellaneous 5,250
HUD-Required A-133 Audit 2,000
Consultant 7,780
Indirect COSI, --292.4
TOTAL $ 289,561 $ 42,780 $50,000