REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  June  27, 2017
CATEGORY:  Consent - Health and Human Services-18.

SUBJECT:

Amendment to the Agreement with City of Shasta Lake to Administer City’s Housing Rehabilitation Program

Supervisorial District No. :  4

DEPARTMENT CONTACT:  Richard Kuhns, Psy.D, Director of Housing/Community Action Programs, (530) 225-5160

STAFF REPORT APPROVED BY:  Richard Kuhns, Psy.D, Director of Housing/Community Action Programs

RECOMMENDATION

Approve and authorize the Chairman to sign an amendment, effective date of signing, to the agreement with the City of Shasta Lake to administer a housing rehabilitation program within the city limits of the City of Shasta Lake that decreases compensation to Shasta County by $16,739 (for a new agreement total not to exceed $77,261) and extends the term eight months through December 31, 2017.

SUMMARY

Approval of the recommendation would allow the Department of Housing and Community Action Programs (Department) to continue to receive revenue from the City of Shasta Lake to administer a housing rehabilitation program (Program) for an additional eight-month period.

DISCUSSION

The City of Shasta Lake (City) applied to the California Department of Housing and Community Development (HCD) for Community Development Block Grant (CDBG) funds to provide financial assistance to property owners to rehabilitate substandard homes.  The City’s grant application was successful.  The City executed State of California Standard Agreement 14 CDBG-9887 for receipt of grant funds.  The Department functions as the Program operator.

With approval of the amendment, Shasta County will continue to operate the Program and assist the City of Shasta Lake through close out of the grant on December 31, 2017.  The actual cost to administer the Program has been less than anticipated in the original agreement; therefore, the amendment will decrease the maximum total compensation paid to Shasta County during the term of the agreement from $94,000 to $77,261.

In addition to the $77,261 paid to the County, a maximum of $249,176 is provided to property owners in the form of a low-interest loan to fund the rehabilitation work.  The Program follows guidelines established by the City and approved by HCD.  Loans made to homeowners may range between $5,000 and $80,000.  Housing rehabilitation includes the repair or replacement of heating and air conditioning systems, roofs, siding, weather-efficient windows, plumbing, and electrical systems.  An owner-occupied household must be low-income to participate in the Program.

ALTERNATIVES

The Board could choose to approve a different contract amount or not approve the contract amendment with the City of Shasta Lake.  These alternatives are not recommended as CDBG funds were awarded by the State of California for this purpose, and it would significantly affect the low-income homeowners.

OTHER AGENCY INVOLVEMENT

The amendment was approved, as to form only, by County Counsel.  Risk Management has reviewed the amendment and approved it as to form.  This recommendation has been reviewed by the County Administrative Office.

FINANCING

CDBG is a federal program that is governed and allocated by the California Department of Housing and Community Development.  The federal grant, awarded by HCD, funds all amounts paid to Shasta County by the City of Shasta Lake.  Anticipated revenue and appropriations were included in the FY 2017/2018 Recommended Budget.  There is no additional General Fund impact with approval of this recommendation.