Item Coversheet


LEGISLATIVE MEMORANDUM


TO:


Honorable Mayor and Members of the City Council
FROM: Suzanne Sherman, Acting City Manager
THRU: Joan Junkala-Brown, Community & Economic Development Director
DATE:

7/16/2020
RE:

Consideration of exceeding the $50,000 maximum award for SHIP Owner-Occupied Rehabilitation by $25,000 under the approved LHAP for 2980 Garden Terrace.

On May 18, 2017, City Council adopted Resolution 2017-20 approving the Local Housing Assistance Plan (LHAP) for Fiscal Years 2017-2018, 2018-2019, and 2019-2020. The City’s LHAP provides a plan for expending State Housing Initiative Partnership (SHIP) housing grant funds, to include eligible activities (i.e. Owner-Occupied Rehabilitation and Purchase Assistance Programs), maximum award thresholds for such activities/programs, and identifying set asides for income-eligibility and special need. The LHAP provides for a maximum award of $50,000 per homeowner under the SHIP Owner-Occupied Rehab Program, which addresses repairs or improvements needed for safety and sanitary habitation and/or correction of substantial code violation for very-low, low, and moderate-income residents. Staff has received an application for the Owner-Occupied Rehabilitation to a single-family home at 2980 Garden Terrace NE for repairs to address code compliance violations as well as exterior repairs to address wood rot, aging and non-operational windows, HVAC, code-related plumbing and electrical issues, replacement of the hot water heater and aging kitchen cabinets and countertops.  This home was built in 1961 and the plumbing and electrical are original.

 

The homeowner requested three (3) estimates; however, was only able to obtain two (2) estimates.  If approved, the contract will be awarded to the lowest bidder. Due to the extent of the repairs still needed, staff is requesting to exceed the maximum award by $25,000 for a total of $75,000 in order to address necessary repairs.



REQUESTING DEPARTMENT:
Economic Development

FISCAL IMPACT:

The SHIP Single Family Rehab account (111-3353-554-3807) has an unencumbered balance of $152,246.53 as the date of this agenda item.


RECOMMENDATION:

Motion to 

exceed the $50,000 maximum award under the LHAP’s SHIP Owner-Occupied Rehabilitation Program.

ATTACHMENTS:
Description
2017-2018 LHAP Resolution
LHAP 2017-2020