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RES-ORA-0455 Mobile Home Park Rental Assistance Program Renewal FY 2006-07RESOLUTION NO. ORA- 0455 A RESOLUTION OF THE ORANGE REDEVELOPMENT AGENCY CONFIRMING AND RENEWING THE MOBILE HOME PARK RENTAL ASSISTANCE PROGRAM FOR QUALIFIED VERY LOW INCOME MOBILE HOME PARK RESIDENTS OF THE CITY OF ORANGE FOR FY 2006-07 AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH.WHEREAS, California Health and Safety Code Section 33334.2 and the Amended and Restated Redevelopment Plan for the Orange Amended and Merged Redevelopment Project Area, which merged and amended the Tustin Street, Northwest, and Southwest Redevelopment Project Areas (collectively referred to herein as the Project Area), as adopted by the City Council of the City of Orange (the City Council), authorize and direct the Orange Redevelopment Agency the Agency) to expend not less than twenty percent (20%) of all taxes which are allocated to the Agency pursuant to California Health and Safety Code Section 33670 for the purposes of increasing, improving, and preserving the community's supply of low and moderate income housing available at affordable housing cost to persons of low or moderate income and very low income; and WHEREAS, pursuant to California Health and Safety Code Section 33334.2, the Agency has established a Low and Moderate Income Housing Fund (the Housing Fund) in connection with the Project Area; and WHEREAS, pursuant to California Health and Safety Code Section 33334.2 and in carrying out its low and moderate income housing activities, the Agency is authorized to provide subsidies to, or for the benefit of, very low income, lower income and low or moderate income households and to maintain the community's supply of mobile homes; and WHEREAS, Section 33334.2 of the California Health and Safety Code provides that Housing Fund monies may be used outside the Project Area if a finding is made by resolution of the Agency and the City Council that such use will be of benefit to the Project Area; and WHEREAS, pursuant to Resolution No. ORA-0019 and Resolution No. 6026 adopted by the Agency and the City Council, respectively, on November 22, 1983 for the Tustin Street Redevelopment Project Area; Resolution No. ORA-0113 and Resolution No. 7079 adopted by the Agency and the City Council, respectively, on June 14, 1988 for the Amended Tustin Street Redevelopment Project Area; Resolution No. ORA-0058 and Resolution No. 6654 adopted by the Agency and the City Council, respectively, on July 8, 1986 for the Southwest Redevelopment Project Area; Resolution No. ORA-0117 and Resolution No. 7097 adopted by the Agency and the City Council, respectively, on June 28, 1988 for the Amended Southwest Redevelopment Project Area; and Resolution No. ORA-0115 and Resolution No. 7086 adopted by the Agency and the City Council, respectively, on June 21, 1988 for the Northwest Redevelopment Project Area; the Agency and the City Council found that the use of taxes allocated from specific redevelopment project areas for the purpose of increasing, improving and preserving housing outside the Project Area, would be 3. The Agency hereby finds that the expenditure of Housing Fund monies in the aggregate sum of Five Thousand Five Hundred Dollars ($5,500) from the Project Area to fund the Program will be of benefit to the Project Area. 4. The provisions of the Prior Resolutions, except to the extent inconsistent with the provisions of this Resolution, are hereby ratified and confirmed. 5. Based on the above findings and determinations, the Agency hereby confirms and renews for FY 2006-07 the Program, as described in Exhibit "A", and further directs and authorizes staff to administer the Program as described therein.ADOPTED this 27th day of June, 2006. ATTEST: Z-L.~Mary E. ~ rp~, Clerk'I, MARY E. MURPHY, Clerk of the Orange Redevelopment Agency, Orange, California,do hereby certify that the foregoing Resolution was duly and regularly adopted by the Orange Redevelopment Agency at a regular meeting thereof held on the 27th day of June, 2006 by the following vote: AYES: NOES: ABSENT:ABSTAIN:DIRECTORS: Smith, Murphy, Cavecche, Dumitru DIRECTORS: None DIRECTORS: None DIRECTORS: None 0~z Clerk Mary WHEREAS, pursuant to Resolution No. ORA-0193 adopted December 12, 1989, the Agency approved on a one-year pilot basis a Mobile Home Park Rental Assistance Program (the Program) authorizing the expenditure of Housing Fund monies to finance the Program and provide rental subsidies to very low income mobile home park residents; and WHEREAS, pursuant to Resolution No. ORA-0220 adopted on January 8, 1991,Resolution No. ORA-0237 adopted on January 28, 1992, Resolution No. ORA-0256 adopted on November 10,1992, Resolution No. ORA-0274 adopted on December 14, 1993, Resolution No.ORA-0283 adopted on December 13, 1994, Resolution No. ORA-0298 adopted on December 12,1995, Resolution No. ORA- 0325 adopted on November 26, 1996, Resolution No. ORA-0334 adopted on June 24, 1997, Resolution No. ORA-034l adopted on May 26, 1998, Resolution No.ORA-0345 adopted on June 8, 1999, Resolution No. ORA-0374 adopted on June 27, 2000, Resolution No. ORA-0395 adopted on June 26, 2001, Resolution No. ORA-0412 adopted on June 25, 2002, Resolution No. ORA-0427 adopted on June 24, 2003, Resolution No. ORA- 0434 adopted on June 22, 2004, and Resolution No. ORA-0443 adopted on June 28, 2005, the Agency approved the continuation of the Program. The aforementioned resolutions are collectively referred to as the Prior Resolutions; and WHEREAS, in implementing the Program, the Agency has successfully assisted up to fifty (50) qualified very low income mobile home park residents annually since its inception; and WHEREAS, funding is available from the Housing Fund to continue the Program to assist the one (I) current Program participant during FY 2006-07; and WHEREAS, the Agency desires to confirm and renew the Program for FY 2006-07 as more particularly described in Exhibit A attached hereto and to authorize the expenditure of additional Housing Fund monies pursuant thereto as more particularly described below.NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE ORANGE REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS:1. The Agency finds and determines that the expenditure of Housing Fund monies for rental subsidies to eligible and qualified "very low income households" (as defined by Section 50105 of the California Health and Safety Code) residing in mobile home parks, as contemplated by the Program, shall directly and specifically benefit and protect the community's supply of low and moderate income housing, particularly the supply of mobile homes, available at affordable housing cost to persons and families of low and moderate income, reducing the housing costs otherwise paid by very low income mobile home residents, all within the meaning of Section 33334. 2 of the California Health and Safety Code.2. The Agency finds and determines that the commitment and expenditure of Housing Fund monies to pay for rental assistance pursuant to the Program are EXHIBIT" A" ORANGE REDEVELOPMENT AGENCY MOBILE HOME PARK RENTAL ASSISTANCE PROGRAM PROGRAM STATEMENT I. PROGRAM PURPOSE The purpose of the Mobile Home Park Rental Assistance Program (the Program) is to assist very low income mobile home park residents that pay more than 50 percent of their income for housing costs. Very low income is equivalent to approximately 50 percent of the County median income adjusted for family size. The Program provides monthly subsidy payments representing the difference between the household's monthly housing costs and 30% of the household's income. Such payments are made directly by the Orange Redevelopment Agency (the Agency) to the mobile home park resident. II. LEGAL AUTHORITY AND ADMINISTRATION The Program was adopted by the Agency Board on December 12, 1989 and implemented on February 1, 1990 on a one-year pilot basis pursuant to the California Community Redevelopment Law (California Health and Safety Code Sections 33300 et. seq.), and has been subsequently confirmed and renewed for additional one-year periods. The Program is funded through the Agency's Low and Moderate Income Housing Fund.m. NOTIFICATION/APPLICATION To contain Program costs, new applications for the Program have not been accepted since January 28, 1992. Only current participants are notified by mail to reapply for assistance through the Program. The Agency Board adopted this policy change under its Resolution No. ORA-0237 dated January 28, 1992. Each application is processed in the order that it is received. The application and all materials relating to eligibility are maintained in individual files for each participant.IV. ELIGIBILITY Participants must demonstrate that they are very low income households and that they currently live in a mobile home park. Participants are required to provide proof of income, rental and housing expenses, and coach registration. Participants are encoutaged to apply for the Section 8 Rental AssistancelHousing Choice Voucher Program through the Orange County Housing Authority ( OCHA). Assistance payments provided through the Program are terminated upon acceptance of a participant into the Section 8 Program.Exhibit " A. General No member of the governing body of the City or the Agency, and no other official employee or agent of the City or Agency who exercises any policy decision-making function in connection with the Program, shall directly or indirectly be eligible for the Program.B. Income Participant eligibility is determined based on information submitted on the application and verified by staff. The Program is targeted to very low income households. Household income includes but is not limited to wages, tips,pensions, assistance payments (both public and private), investment income from assets (dividends and/or interest), Social Security, commissions and royalties for all household members living in the mobile home. Participants are required to provide documentation for all income sources.C. Housing Costs Eligible participants must provide proof of housing costs. Housing costs include space rent, rent or payment for the mobile home, utilities, homeowners insurance, registration fees, and property taxes.A space rent limitation of $515 became effective February I, 1993. This limit was increased to $550 effective July I, 2002 and to $618 effective July I, 2004;and will be increased to $686 effective July I, 2006 to be consistent with the federal Fair Market Rent for mobile home spaces in Orange County set forth by the U.S. Department of Housing and Urban Development and published by OCHA. Participants whose space rent exceeds $686 are not eligible for the Program. For purposes of the Program, the limitation of $686 is deemed to include all remuneration payable by a participant to the mobile home park owner, whether characterized as rent or otherwise.V. PROGRAM FUNDING LIMITATIONS AND CONDITIONS Participants will be informed that the FY 2006-07 Program (July I, 2006 through June 30, 2007) was approved. The approved budget for the FY 2006-07 Program is Five Thousand Five Hundred Dollars ($5,500). Rental assistance payments will be in the form of monthly checks paid to eligible participants by the Agency. Continuation of the Program for successive years will remain contingent upon the effectiveness of the Program, funding availability, and Agency Board approval. The continuing eligibility of participants will be determined on an annual basis.All participants will be required to sign a disclaimer certifying that they understand these conditions, that the Internal Revenue Service may consider this assistance as income, and that participation in this Program may adversely affect their subsequent eligibility for the OCHA Section8 Rental Assistance/ Housing Choice Voucher Program.Exhibit "A"