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C.27

To:	Board of Supervisors
From:	Catherine Kutsuris, Conservation & Development Director
Date:	February 8, 2011

Contra

Costa

County

Subject:

THE 2010-11 CONTRACT BETWEEN CONTRA COSTA COUNTY AND THE CITY OF WALNUT CREEK FOR THE HOUSING REHABILITATION LOAN PROGRAM

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/08/2011

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Pat Corum (925) 335-1115

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: February 8, 2011
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

AUTHORIZE the Director of Conservation and Development, or designee, to execute a contract with the City of Walnut Creek for the County to administer the City's Housing Rehabilitation Loan and Energy Efficiency Improvement Programs using City of Walnut Creek Community Development Block Grant (CDBG) funds, Energy Efficiency and Conservation Block Grant (EECBG) funds, and Redevelopment funds, for the term of July 1, 2010 through June 30, 2011.

FISCAL IMPACT:

No fiscal impact to the General Fund. The Contra Costa County Conservation and Development Department would receive funds from the City of Walnut Creek under the terms of the proposed contract.

BACKGROUND:

The Contra Costa County Department of Conservation and Development, Building Inspection Division, administers a housing rehabilitation loan program called the Contra Costa County Neighborhood Preservation Program (CCCNPP). CCCNPP offers low-interest and zero-interest loans to low-income and very-low-income households who own and occupy their home. The loan recipients qualify for loan assistance under guidelines established by the U.S. Department of Housing and Urban Development (HUD).

The Neighborhood Preservation Program serves homeowners who are not able to qualify for conventional loans. The program offers financial assistance to eliminate conditions that are detrimental to health and safety, and promotes the stabilization and enhancement of older neighborhoods in order to encourage a sense of pride in the neighborhood. The funds are used for repairs such as roofing, electrical, plumbing, mechanical, termite repairs, lead paint mitigation, disabled accessibility, interior and exterior painting and other necessary deferred maintenance repairs.

The City of Walnut Creek wishes to enter into a new contract with Contra Costa County, through the CCCNHP, to administer its Single Family and Mobile Home Rehabilitation Loan and Grant Programs. The City of Walnut Creek receives Community Development Block Grant (CDBG) funds from HUD as an entitlement to the City pursuant to the provisions of Title I of the Housing and Community Development Act of 1974, as amended.

The City of Walnut Creek has also received Energy Efficiency and Conservation Block Grant (EECBG) funds through the U.S. Department of Energy for energy efficiency improvments.

The City of Walnut Creek, through its Redevelopment Agency, also maintains a Low and Moderate Income Housing (LMIH) fund as required by the State redevelopment law to be used to increase, improve and preserve the supply of the City’s low and moderate income housing.

The City of Walnut Creek has approved and authorized the expenditure of revolving loan fund income (received from repayments for loan principal and interest earned from loans previously made with City Low and Moderate Income Housing funds) to fund the Housing Rehabilitation Loan and Energy Efficiency Improvement Program for single-family residences in Walnut Creek, which would be administered by Contra Costa County under the proposed contract.

For fiscal year 2010-2011, the City of Walnut Creek has authorized the expenditure of a total of $374,500 in CDBG, EECBG, and RDA funds for this program.

The City of Walnut Creek will pay Contra Costa County 20 percent of all loan or grant amounts, as compensation for the services provided by Contra Costa County Conservation and Development Department to the City of Walnut Creek.

CONSEQUENCE OF NEGATIVE ACTION:

The Conservation and Development Department would not receive authorization to enter into a contract with the City of Walnut Creek to administer the City's Housing Rehabilitation Loan and Energy Efficiency Improvement Programs.

CHILDREN'S IMPACT STATEMENT:

Children would receive indirect benefits through the rehabilitation and improvement of owner-occupied housing in the City of Walnut Creek.