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HomeMy WebLinkAbout1985-041-03/19/1985-SETTING FORTH THE GOALS AND OPERATING PROCEDURES FOR A RENTAL REHABILITATION PROGRAM RESOLUTION 85- 41 OF THE COUNCIL OF THE CITY OF FORT COLLINS SETTING FORTH THE GOALS AND OPERATING PROCEDURES FOR A RENTAL REHABILITATION PROGRAM WHEREAS, the City of Fort Collins has utilized Community Development Block Grant (CDBG) funds from the Department of Housing and Urban Develop- ment (HUD) since 1975 to assist in the rehabilitation of substandard, low-income, owner-occupied homes ; and WHEREAS, the full impact and benefit of CDBG funds expended has not been realized due to the number of non-owner-occupied rental units in need of rehabilitation ; and WHEREAS , the City of Fort Collins desires to expand its housing rehabilitation program to include rental units ; and WHEREAS, the City of Fort Collins applied for and was selected by HUD to participate in the Third Round Rental Rehabilitation Demonstration Program; and WHEREAS, the City of Fort Collins has also been allocated funds from HUD for use in a Rental Rehabilitation Grant Program. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following goals and operating procedures are adopted for the implementation of a rental rehabilitation program. PURPOSE OF THE PROGRAM 1. To increase the supply of decent rental housing for low and moderate income people while preserving the city' s existing housing stock . 2. To revitalize older neighborhoods, particularly the three CDBG Neighbor- hood Strategy Areas (NSA's) of Holy Family; Buckingham, Alta Vista and Andersonville (BAVA) ; and Laurel School . 3. To reduce the number of people presently on the waiting list for Fort Collins Housing Authority units. 4. To utilize the additional Section 8 Rental Subsidy Certificates which will become available to the Housing Authority under the HUD programs. SUBSIDY MECHANISM 1. The rental rehabilitation subsidy to owners/landlords will be in the form of a shared equity deferred payment loan due on sale of the pro- perty. 2. The deferred loan amount may not exceed 50% of the rehabilitation cost and $5,000 per unit. In special cases, the amount of City participation may exceed $5,000 per unit, if necessary to make the project feasible. 3. Only enough public funds to make rehabilitation feasible at current market rates will be used to write down the cost of private financing. 4. The City's shared equity amount, due on sale of the property, will not be reduced below the original amount of funds put into the project ensuring the City, at a minimum, the return of public funds placed into the project. The City 's share of the increased equity of any project shall be in the same proportion to the gross sales price (without deduction for any real estate commission) of the property as the City's contribution is to the appraised value of the project plus the cost of rehabilitation. TENANT STRATEGY 1. Section 8 Certificates are to be given to the tenant and are not tied to the rehabilitated unit . The tenant may, at any time within lease agreements, move to another location and may take the certificate with him/her. 2. The owner/landlord will be required to notify the City of any rehabil - itated unit vacancies. The City's CDBG staff and Housing Authority staff will assist in the finding of new tenants. 3. The City does not guarantee occupancy of rehabilitated rental units. 4. Federal Fair Housing Laws and the City's affirmative marketing proce- dures will be adhered to in the program. PROJECT SELECTION 1. To be eligible for rehabilitation under the program, rental properties must require the correction of all minimum building code violations . The City of Fort Collins ' Building Codes and HUD Section 8 Existing Housing Quality Standards will be used to determine the level of re- habilitation needed. 2. Vacant (for 3 months or longer) substandard rental units will be re- habilitated as a high priority on the condition that when rehabilitated, they be first offered to people presently on the Housing Authority's waiting list for rental housing. 3. Substandard rental units occupied by people who qualify for, but do not have a Section 8 Certificate, will also be given a high priority. -2- 4. Units located in one of the three CDBG NSA's will be given the highest locational priority; and units located in a block face where the City has expended funds to rehabilitate owner-occupied units will be given preference within such locational priority. 5. Units which have three, or more, bedrooms for use by a large family will be given a high priority for project approval . Passed and adopted at a regular meeting of the City Council held this 19th day of March, A.D. 1985. // _1jtA.<Aw/J Mayor --- , ATTEST: City Clerk -3-