HomeMy WebLinkAboutSeptember 17, 2002M
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WO"T STAFF REPORT
Fire Department
September 17, 2002
TO: Mayor and City Council
FROM: David R. Lugo, Fire Chief A,6(11
Prepared by:' Richard Brown, Battalion Chief
SUBJECT: PURCHASE OF CAMERA EQUIPMENT FOR THE FIRE DEPARTMENT
RECOMMENDATION: APPROVE THE PURCHASE OF THREE
BULLARD T -3 THERMAL IMAGING CAMERAS IN THE AMOUNT OF
$31,825.50 FROM L.N. CURTIS AND SONS FOR FIRE DEPARTMENT
ENGINE COMPANIES
SUMMARY
Funding for three thermal imaging cameras was provided for in the 2002 -2003
Equipment Acquisition Fund.
The purpose of this Staff Report is to obtain Council Approval for the purchase of
camera equipment for the Fire Department. Staff recommends that the City Council
authorize the purchase of three Bullard T -3 thermal imaging cameras from L.N. Curtis
and Sons, in the amount of $31,825.50.
BACKGROUND
Thermal imaging cameras are used by firefighters to assist in searching smoke filled
areas for victims, locating hidden fire behind walls and ceilings, and finding overheated
electrical boxes without damaging walls. Prior to the use of these cameras, firefighters
would have to search a building room by room in blinding smoke to locate victims.
These cameras allow the firefighter to literally see through the smoke and rapidly locate
victims overcome by smoke.
A major task at all fires is the rapid deployment of a search and rescue team to
determine if anyone is trapped or overcome by smoke inside a building. Their task is to
quickly and systematically search the building and remove any victims to safety. The
use of thermal imaging cameras dramatically reduces the time searching for victims by
cutting through the smoke. The camera uses inferred technology, similar to night vision
goggles used by the military. The operator can hold the camera in one hand and
"sweep" the room and determine by the heat signature, if anyone is inside the room.
LASER IMAGED
of
Mayor and City Council
September 17, 2002
Page 2 of 2
DISCUSSION
Currently, the Fire Department carries two larger thermal imaging cameras on the Truck
Company and the Battalion Chief s vehicle, as they are assigned to all structure fire
incidents in the City. The Bullard T -3 cameras are smaller in size than the two currently
in use, thanks to new technology. The smaller size will facilitate the rapid deployment of
the camera by the first arriving company. There will be no waiting for the camera to
arrive to deploy it. The original two cameras will be retained for use as backup
equipment.
Formal bids were requested and obtained from three qualified vendors in accordance
with City purchasing procedures. L.N. Curtis and Sons was the lowest qualified bidder.
FISCAL IMPACT
Funding for the thermal imaging cameras is provided for in the 2002 -2003 Equipment
Acquisition Fund.
RECOMMENDATION
It is recommended that the City Council award the purchase of the three Bullard
T -3 Thermal Imaging Cameras to L.N. Curtis and Sons, in the amount of
$31,825.50.
DRL:rcb
Approved:
William R. Kelly, City Manager
Q 3 s'�A —GO
10
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STAFF REPORT
Arcadia Public Library
September 17, 2002
TO: Mayor and City Council
FROM: Janet Sporleder, City Librarian
SUBJECT: Acceptance: Monetary gift of $6,795 from the Arcadia Public Library
Foundation to the Library for furniture, programs and materials.
Recommendation: Accept the donation from the Arcadia Public Library
Foundation
Summarv: The Arcadia Public Library Foundation, as part of its ongoing mission to
support the Library's goals and objectives, is donating a total of 56,795. The funds will
be used to purchase library materials, support programming in the Children's Room and
reupholster furniture in the Children's Room.
Discussion: The Arcadia Public Library Foundation continues to provide support for the
programs and services of the Arcadia Public Library by soliciting donations and applying
for grants. The current donation, totaling 56,795, has three components:
• A grant for $ 1,000 from the Oak Tree Foundation was awarded to the .Arcadia
Public Library Foundation for the purchase of materials for the literacy and
English -as -a- second - language collections.
• Donations totaling $2,500 were made to the Arcadia Public Library Foundation
that specified the funds are to be spent in support of the Children's Summer
Reading Program.
• Furniture in the Children's Room that was purchased by the Arcadia Public
Library Foundation in 1995 is in need of reupholstering. $3,295 has been
designated to complete this project.
All gifts to the Library are subject to approval by the City Council pursuant to City
Charter article VIII section 809 (d).
Fiscal Impact: The Library will experience an added $6,795 to its budget allocation.
LASER IMAGED
Recommendation:
$6,795 donation to
Foundation.
Approved by:
A
ET
It is recommended that the City Council approve the receipt of the
the Arcadia Public Library from the Arcadia Public Library
William R. Kelly, City Manager
2 Ex 3
W::M2
September 17, 2002
TO: Mayor and City Council
FROM: Janet Sporleder, City Librarian
w
STAFF REPORT
Arcadia Public Library
SUBJECT: Acceptance: Monetary Qift of 56,795 from the Arcadia Public Library
Foundation to the Library for furniture, programs and materials.
Recommendation: Accept the donation from the Arcadia Public Library
Foundation
Summarv: The Arcadia Public Library Foundation, as part of its ongoing mission to
support the Library's goals and objectives, is donating a total of 56,795. The funds will
be used to purchase library materials, support programming in the Children's Room and
reupholster furniture in the Children's Room.
Discussion: The Arcadia Public Library Foundation continues to provide support for the
programs and services of the Arcadia Public Library by soliciting donations and applying
for grants. The current donation, totaling 56,795, has three components:
• A grant for 51,000 from the Oak Tree Foundation was awarded to the Arcadia
Public Library Foundation for the purchase of materials for the literacy and
English -as -a- second - language collections.
• Donations totaling 52,500 were made to the Arcadia Public Library Foundation
that specified the funds are to be spent in support of the Children's Summer
Reading Program.
• Furniture in the Children's Room that was purchased by the Arcadia Public
Library Foundation in 1995 is in need of reupholstering. $3,295 has been
designated to complete this project.
All gifts to the Library are subject to approval by the City Council pursuant to City
Charter article VIII section S09 (d).
Fiscal Impact: The Library will experience an added $6,795 to its budget allocation.
LASER IMAGED
Recommendation:
$6,795 donation to
Foundation.
Approved by
M
M
It is recommended that the City Council approve the receipt of the
the Arcadia Public Library from the Arcadia Public Library
William R. Kelly, City Manager
G _A
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ge-PonATS9 STAFF REPORT
Development Services Department
DATE: September 17, 2002
TO: Mayor and City Council
sip
FROM: Don Penman, Assistant City Manager/Development Services Director''
Philip A. Wray, City Engineer/Engineering Services Administrator
By: Dan A. Lazo, Associate Civil Engineer
Reviewed By: Jan Steese, Purchasing Officer
SUBJECT: Award of contract— Relocation of Hugo Reid Family Statue
Recommendation: Authorize the City Manager to enter into a contract
with American Heavy Moving.& Rigging, Inc. in the amount of$57,362
SUMMARY
The City Council, in the Capital Improvement Program Budget (02-03) approved funding
to relocate the Hugo Reid Family Statue from Arcadia County Park to the Ruth and
Charles Gilb Historical Museum site. A location map of the project is attached for
reference.
The project was advertised and bids were opened on September 3, 2002. American
Heavy Moving & Rigging, Inc. submitted the only bid in the amount of$57,362.00.
Staff recommends that the City Council award a contract for the Relocation of Hugo
Reid Family Statue to American Heavy Moving & Rigging, Inc.
DISCUSSION
The Hugo Reid Family Statue is currently located in the Arcadia County Park, directly
north of the swimming pools. The County of Los Angeles has donated the statue to the
City of Arcadia at no cost, other than that to remove it from County property and restore
the existing site to an acceptable level. The statue will be placed in between the newly
constructed "Ruth and Charles Gilb Arcadia Historical Museum" and the Community
Center.
The project consists of removing the statue, transporting it through the park and public
streets to the museum site and placing it in the ground at the same depth at which it
exists currently. The project will not include any restoration work on the statue. The
work is expected to take one week to complete. The contractor is required to obtain
insurance to protect the statue from damage during the move. In the event of a crack or
9 LASER IMAGED
Staff Report
Award Contract for Relocation of Hugo Reid Family Statue
September 17, 2002
Page 2
break in the statue, the damage will be 'evaluated by the City to determine if repair or
replacement is appropriate. The contractor is also required to restore all damages
caused by the move, such as broken curbs and sidewalk, and fill in the hole at the
removal site.
Several months ago, staff contacted several moving companies 'to inquire about
relocating the statue. Estimates were, given from two companies in the amount of
$57,000 and $65,000.
The project was formally advertised for bids on August 16, 2002. Three (3) prospective
contractors received plans and specifications and one (1) qualified bid was received in
the amount of$57,362 from American Heavy Moving & Rigging, Inc.
Staff has reviewed the bid documents for content, and has investigated the contractor's
background and recent projects for competency. Staff has determined that American
Heavy Moving & Rigging, Inc. can satisfactorily perform the required work and their bid
is reasonable and within budget.
ENVIRONMENTAL ANALYSIS
The project is categorically exempt per Section 15301 class 1(d) from the requirements
of California Environmental Quality Act (CEQA).
FISCAL IMPACT '
Funds have been approved in the 2002/03 Capital Improvement Program (CIP) for the
relocation of the Hugo Reid Family Statue in the amount of $66,000. Funds are
available to cover the contract cost, engineering, inspections and contingencies.
RECOMMENDATION '
That the City Council authorize the City Manager to enter into a contract with
American Heavy Moving & Rigging, Inc. in the amount $57,362 for the relocation
of Hugo Reid Family Statue. '
Approved By:
WILLIAM R. KELLY, CITY MANAGER
PAW:DP:pa '
Attachment
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PROPOSED LOCATION
OF THE STATUE
CITY OF ARCADIA DATE: 8-02
ApiNli
op t. RELOCATION OF
HUGO,REID FAMILY STATUE BY: DL (ljO4'
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DEVELOPMENT SERVICES DEPT. LOCATION MAP
ENGINEERING DIVISION
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0 ARCADIA
� STAFF REPORT
Rl'08ATE9
Development Services Departme t
September 17, 2002
TO: Mayor and City Council
FROM: Don Penman, Assistant City Manager/Development Services Director
By: Pete Kinnahan, Economic Development Administrator
SUBJECT: Report - Habitat for Humanity Housing in Arcadia
DISCUSSION
The City Council at the June 18, 2002 Study Session directed staff to place on a regular
City Council agenda an item regarding Habitat for-Humanity housing.
Attached for your review are: 1) a brochure dated 10/9/01 prepared by the San Gabriel
Valley Habitat for Humanity office in Pasadena, 2) a memorandum dated November 30,
2000 from the Redevelopment Agency's consultant, Kathleen Head of Keyser Marson
Associates. Both of these are excellent summaries of the purpose and goals of Habitat,
as well as some practical considerations for a possible Habitat development in Arcadia.
At the meeting, staff will present a brief Powerpoint presentation showing the Habitat
projects in Duarte, El Monte, Pasadena and Glendale. A representative of the Board of
Directors of the San Gabriel Valley Habitat, has been asked to make a :rief
presentation to the City Council to respond to any questions you may have.
FISCAL IMPACT
The Redevelopment Agency has Housing Set Aside Funds which can be used for
assisting a Habitat project.
RECOMMENDATION
That the City Council provide direction regarding a possible Habitat for Humanity
development in Arcadia.
Approved:
William R. Kelly, City Manager •
Attachments LASER IMAGED
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Hope With Our Hearts'
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San Gabriel Valley Habitat for Humanity •• .
789 North Altadena Drive •
Pasadena, California'91107,
Phone: (626) 398-9371 .
Fax (626) 398-1961 ... .
•Cese3-10/09/01
www.sgvhabitat.org ,
•
• - sgvhfh @jps.net .
ATTACHMENT 1
Since 1989,,SGVHFH has built 29 1:,...__A in the San Gabriel Valley(Glendale, Pi :na, El Monte and Duarte): ., •
To date, 143 men,,women and children have become Habitat homeowners. .
•• Our first hOnie(and the first Habitat home built in Los Angeles County)was built in Pasadena on Maple Street
on land directly purchased by the affiliate.However,land acquisition is costly, so•SGVHFH works closely.with
city and county inuniCipalitiei'to obtain fiuidS frit land in Order to keep our homes at affordable levels. We have
been fortunate to receive substantial finding for land acquisition and offsite'Costs. Such funding assistance s a
vital part of our partnering strategy.
•.•• • ., .r , , ..-
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- HABITAT FOR HUMANITY INTERNATIONAL
- -
Founded in 1976 by Millard and Linda Fuller, Habitat for Humanity International(HFHI)is a nonprofit,
ecumenical faith-based ministry dedicated to eliminating substandard housing worldwide. This mission is met
by providing homeownership opportunities to families that otherwise 0914d not afford them and by raising
5•• •,: •••, .•
community awareness that shelter must be'a matter of conscience and action. •
Habitat's traditional apprOaCh includes: '••- , , -., :n-,•• •,,..:.„. •
•partnering4itli'fain-ilieSliii need of better housing who demonstrate a willingness to commit to the
long-range terms of sweat equity and mortgage repayments, - '. ,::,• .
•building houses witli•no interest and no'ptofit;
• encouraging homeowner participation at every level of the building or renovation process;
•invOlVing VOlinittieri iiihOtheOwner selection and mentoring, along with development, fundraising,
construCtiOn, adininistfatiOn and related program areas;
•-creating a mortgage with an affordable pay:Meat schedule fot the families involved;
•recycling homeowners' mOrtgagepayinerits into a construction fimd;thereby enabling assistance:to
additional families.
• .
,, • ,,
In 1982,the Fullers asked President and Mit.Jimmy Carter to volunteer forifFHI: As a tesult of their
committed and sincere personal involireinent, Habitat't national visibility grew and sparked interest in HalitaVs
work across the nation. Since 1976, HFHI and its affiliates have constructed more than 100,000 houses w rid-
wide. As a result, an estimated 400,000 people now are living in safe, decent homes. This success has been
accomplished through the work of more than 1,600 affiliates in the United States and in 76 countries worldwide.
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STRATEGIC' OBJECTIvtS
SGVHFH realizes that it must adopt a strong course of action in order to eliminate poverty housing in the Ian
Gabriel Valley. Land availability remains a critical issue. In order to make an impact in our geographic service
area, it is imperative that we increase the number of homes built. Consequently, the SGVHFH Board of
Directors has adopted the following objectives:
• To build 12 new homes and two rehabs between 2002-2003
• Raising$2 million in a combination of cash, government funds and donated
building materials, with a minimum of$500,000 by July 2002
• To acquire three to five additional building sites by Fall 2002 ;� ?-.
• To acquire two rehab project sites by Spring 2002 4'rF n,�,4
• The Board has concluded that to reach our building goals, our affiliate may be r,,— .'
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building in two different locations simultaneously.' Consequently, it is anticipated , 5 . ,p i : A
that the affiliate will hire•two part-tune construction managers. , ss7 ., .
• Maintain a current land acquisition and development plan 'a " .,
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• Increase our donor base by 50%in the next two years t 1'c °1 = �,1 1 ;�'
• Increase our volunteer base by 25% within the coming year
• Increase net profits of the annual Alternative Gift Fair by $10,000 in FY 2002
• Secure a warehouse for tool and building materials.storage
El Monte (2504 Burkett Road)
BEFORE San Gabriel Valley Habitat for H;umanity...
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4 • A CALL FOt L.EADEHIP...A CALL FOR ACS.viN
, San Gabriel Valley Habitat for Humanity invites you to make a commitment—to improve the quality of life for
hard-working, low-income families in our community. We ask you to help us make a difference in the San
Gabriel Valley by coming together with people from all faiths, all political parties and walks of life.
Our vision of hope is that through parterships of individuals,businesses, churches, foundations and civic groups,
we can strengthen the very fabric of our local society. The impact of making affordable housing a matter of((con-
science and action will stabilize and improve neighborhoods. Tax bases increase,people take pride in their com-
munities and property values rise.
Habitat calls for extraordinary commitment from the San Garbriel Valley community. With this commitment,
however, all involved can advance the goal of affordable housing in the Los Angeles County area.
San Gabriel Valley Habitat for Humanity calls for:
• Leadership in inviting/calling others to participate. "Now, I have something I can
• Leadership in providing funding from individuals, businesses and be proud of, for my children
corporations, churches, foundations and civic groups. to be proud of and strive to
do better in life. I want my
• Leadership in identifying available, affordable land. children to have a place to • .
• Leadership in encouraging participation at the advisory level.
live in and love in. This is
home."
• Leadership in working with community governments to provide —Jean Tejada
affordable housing programs. New Homeowner
• Leadership in encouraging meaningful, faith-based volunteer participation.
The next decision you make could be one that will positively transform
neighborhoods and families throughout the area.You can make a difference.
Please join us in hope and our practical effective labor of love.
riiroft
'Sob) I
$ .FOR •
San Gabriel Valley Habitat for Humanity
789 North Altadena Drive •
Pasadena, California 91107
Phone: (626)398-9371
Fax: (626)398-1961
www.sgvhabitat.org
sgvhfh @jps.net
'K E Y S E R M A R S T O I` , S S O C I A T E S I N C . • ADt?SORS IN:
REAL ESTATE •
500 SOUTH GRAND AVENUE, SUITE 1480 REDEVELOPMENT
LOS ANGELES,CALIFORNIA 90071 R I `�Ei, {V yw AFFORDABLE HOUSING
PHONE: 213/622-8095 +•,1 I�"� ECONOMIC DEVELOPMENT
pp 4((��Qe FISCAL IIIMPACT
Fax:213/622.5204
...� A,11, N� • INFRAS?RUCTURE FINANCE
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• Los Angeles •
Calvin E.Hollis,II
MEMORANDUM . Kathleen H.Head
James A.Rabe
• Paul C.!Anderson
Gregory D.Soo-Hoo
To: Peter Kinnahan, Economic Development Administrator San Diego
City of Arcadia Gerald Trimble
Robert J.Wetmore
Paul C. Marra
From: Kathleen Head
_ SAN FRANCISCO
A.Jerry Keyser
Date: November 30 2000 • Timothy)C.Kelly
� Kate Earle Funk
i
Denise E.Conley
Debbie M.Kern
Subject: Habitat For Humanity
As a follow-up to our recent meeting, the following memorandum summarizes the Keyser
Marston Associates, Inc. (KMA) experience with projects developed by Habitat for Humanity
(HFH) in several Southern California communities. This summary is intended to assist the ,
Arcadia Redevelopment Agency (Agency) in determining whether it would be advantageous to
undertake a HFH project as a means of providing affordable housing units within the
community. _
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BACKGROUND.STATEMENT
HFH is an ecumenical Christian organization that provides housing for working.poor familiesi.
Specifically,,the HFH mission is to sell basic homes at an affordable price to very-low income
families. This is accomplished in the following manner:
•
1. HFH attracts volunteer workers and donated building materials to assist.in building the
-homes.
2. HFH requires the home buyers to assist in building other families' homes. This labor is
treated as the home buyer's sweat equity.
3.. HFH solicits municipal assistance, typically in the form of donated land and public fees
• costs. .
4. HFH provides interest free mortgages to the home buyers to minimize the housing
related costs that must be incurred by the participants.
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10201.001/001 • ATTACHMENT 2
• To: Peter Kinr ln, City of Arcadia November 30, 2000
Subject: Habitat For Humanity Pal e 2
• It has been our experience that approximately 50% of the costs associated with a HFH pr jest
are typically funded with volunteer labor and materials. HFH projects are also typically
assisted with donated land and fee waivers from municipalities; however, their charter
precludes theft-from accepting any building cost assistance from the public sector. Any
• construction costs that are not funded from donations/volunteers must be paid for from HF
resources. .
•
The issues that are typically considered by redevelopment agencies that are undertaking HFH
projects are:
1. Project design and amenities; •
• 2. Assistance costs;
3. Affordability;
4. Family selection; and,
5. Development timing.
The following sections of this memorandum describe the issues that must be resolved wh-n
projects are undertaken with HFH. These sections also identify the major opportunities an•
constraints associated with HFH projects.
ISSUES .
Project Design and Amenities
•
HFH has an explicit mission to provide simple basic housing to their program participants. By
definition, this means that HFH homes are designed tb meet the minimum building code
standards imposed by municipalities. For example, when HFH first entered the California
market, they were extremely reluctant to provide garages with the homes. It has also been our
experience that it is very difficult to convince HFH to provide more than one bathroom in a
home, even when the homes include four- or mare bedrooms.
HFH'has been developing homes in California for nearly 10-years now. During that perio ,
they have become significantly more accommodating in meeting the requirements impose by
jurisdictions that are providing them with financial assistance. •However, given that HFH
wishes to minimize their out-of-pocket costs, and that they are precluded from accepting p blic
funding for building costs, it is often a struggle to meet the design and amenities objectives
held by redevelopment agencies. In practice, it is typically necessary for HFH to attract
benefactor(s) to provide the extraordinary building and/or landscaping required to allow the
project-to complement the existing uses in the neighborhood.
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10201.001/001 •
' • . To: - Peter Kinn i, City of Arcadia November 30,2000
Subject: Habitat For Humanity Page 3 .
Assistance Costs
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HFH projects are unique in the marketplace for the following reasons:
1. They derive a significant:portion of their costs from donations/volunteers;
2. They self-finance their home sales with interest free loans; and,
3. They artificially set the sales prices for the homes to reflect the price that can both be
afforded by the target home buyers and that allows them to recoup the out-of-pocket
costs HFH contributed to the project.
The unusual characteristics embodied by HFH projects make it impossible to evaluate the
warranted redevelopment agency assistance using traditional financial analysis techniques.
Rather, it is necessary for the redevelopment agency to identify the amount of assistance that
they are willing to provide, and then HFH will structure the home sales price and home buyer
financing terms to reflect the characteristics associated with the specific project being
evaluated.
It is important to recognize that there is no chance for HFH to achieve a windfall profit on a
project, because in each case, the home sale price is set equal to the effective costs. As the
costs decrease,,HFH is able to target households at lower and lower income levels. As the
costs increase, the target audience moves towards the high end of the very-low income range.
Typically, redevelopment agencies donate the development site to HFH in a cleared and
devblopable.statef As a general rule, they also pay for the municipally imposed permits and •
fees costs. In some instances, the redevelopment agency will also pay for the infrastructure
and off-site improvements necessitated by the development. In areas with high land costs
this assistance package can easily total over$100,000 per unit. However, it should be noted
that this cost is significantly lower than the cost associated with providing home ownership
opportunities to very-low income households on a conventional basis, and roughly equivalent
to the cost associated with providing new rental units to very-low income households.
Affordability
•
The HFH mission is to provide housing for working poor families. As a practical matter, that
means that the participant families typically qualify as very-low income under the definition
imposed by California Redevelopment Law as presented in the California Health and Safety
Code (Code). The Code defines very-low income as households that earn less than 50% of
the area median income. For Los Angeles County, this standard is currently $26,050 for a
family of four.
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10201.001/001
•
• To: Peter Kinn n, City of Arcadia) November 30, 2000
Subject: Habitat For Humanity Page 4
•
The Code requires housing projects that are assisted with Property Tax Increment Housin
Set-Aside funds (Set-Aside) to be provided to the residents at an affordable housing cost. .
. Under the Code Section 50052.5 definition, affordable housing cost is calculated based on
benchmark standards for each income group and home size. For example, the affordable
housing cost per month for a very-low income three-bedroom home is•calculated as follows:
- $26,050 (50% of the Median for a four-person household) *30% = $7,815/12 ='$651
It is important to understand that the home buyer's total housing related expenses cannot
exceed $651 per month. These expenses include mortgage payments, property taxes',
insurance costs, utilities costs and an allowance for ongoing maintenance costs. To determine
the maximum home price a very-low income household can pay, it is necessary to first deduct
all the non-mortgage related costs. The remaining funds can then be dedicated to debt
service on the HFH mortgage:
A prototypical example of this concept follows: -
Property Taxes2 $230
'Insurance 145 -
Utilities - 70
Maintenance 25
Total $470
Funds Available for Mortgage
Total Available Funds $651
•
(Less) Other Housing Expenses (470) •
Funds Available for Mortgage $181 •
As can be seen in the table above, under the Code Section 50052.5 requirements, a very-ow
income household would be able to allocate $181 per month to the debt service payments on
the HFH mortgage for a three-bedroom unit. This equates to a mortgage ranging from
$43,440 if the mortgage repayment period is set at 20-years, to $86,880 if the repayment erm
is set at 40-years. .
•
It has been our experience that HFH will set the mortgage repayment period at the term
required to both keep the payment at the "affordable housing cost" and to provide HFH wih -
the sales revenues that.they have determined are necessary for each specific project. For .
•
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1 Typically the property tax levy is based on the assessor's estimate of the home's fair market value.
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' 2 Based on a $250,000 market value and a 1.1% property tax rate.
• 0011072;ARC.KHH:gbd •
10201.001/001 • • •
To: Peter Kinn n, City of Arcadia November 30, 2000
Subject: Habitat For Humanity Page 5
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example, if HFH wishes to set the sales price at$75,000, the mortgage repayment term would
have to beset at approximately 35-years.
It is important to remember that HFH provides home buyers with interest free mortgages,
which materially enhances the opportunity for very-low income households to purchase a
home. If the mortgage carried a conventional interest rate, and a 35-year amortization period,
the maximum affordable price for a very-low income home buyer would be approximately
$25,500. When that fact is considered in conjunction with the benefits created by HFH's ability
to attract donated materials and labor, it is clear that no traditional developer would be able to
undertake such a project without substantially more redevelopment agency assistance than is
typically required to implement a HFH project.
Family Selection
The HFH mission is to assist families; HFH only assists households that have children. E ch
HFH chapter has a Family Selection Committee that establishes the evaluation criteria that will
be applied to each project. HFH is working with redevelopment agencies throughout Souti ern
California, and as a result they are keenly aware that the selection process cannot be based
on the prospective participants' religious affiliation. Moreover, in several cases,
redevelopment agencies use United States Department of Housing and Urban Development
(HUD) HOME program funds to assist the project. In those cases, HFH must adhere to
federal "Fair Housing " policies.
It has been our experience that redevelopment agencies typically identify their family selection
criteria in the affordable housing assistance agreement. This often includes the requirement
that the marketing effort be focused in the community, and that HFH give consideration to
families that have been displaced by redevelopment activities. However, the use of
preferences in the selection process is a hotly debated topic, and thus it is important to obtain
legal advice on the type of restrictions that can be imposed on the potential pool of home
buyers.
Development Timing
Each HFH chapter has a paid Director, but in fact, HFH is a volunteer based organization.
The vast majority of the development service providers such as architects, attorneys, skilled
tradespeople, etc. are volunteers. In addition, HFH is heavily dependent on the use of
donated materials. Thus, it cannot be anticipated that HFH projects will be developed on the
same type of timeline as is applied to a conventionally constructed project. Rather, HFH
typically undertakes projects as the necessary services and materials become available.
KMA has assisted redevelopment agencies in evaluating numerous HFH projects, and it has
been our experience that the development timeframc varies widely from project to project
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.1 • ' To: Peter Kinn n, City of Arcadia November 30, 2000
Subject: Habitat For Humanity ' Fade 6
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This is partially dependent on the capacity of the particular HFH chapter, and partially based
on the chapter's success in attracting donations/services. As a result, KMA typically
recommends that the redevelopment agency postpone the site's conveyance until HFH can
demonstrate that they have accumulated sufficient resources to complete the project in a
timely fashion. In this manner, the redevelopment agency is not faced with a partially
developed site over a protracted construction period. . .
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CONCLUSIONS
The HFH mission is solely focused on providing affordable housing to very-low income
families. There is clearly no.profit motivation at any level of the organization. Moreover, the
national organization has strong financial resources, and they often provide financial
assistance to the individual chapters.
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If a redevelopment agency wishes to pursue a home ownership program targeted to very-low
income households, HFH offers the only model that KMA has seen work successfully.
However, it is first important to determine that very-low income home ownership is a prudent
objective. In making that decision it must be remembered that very-low income households
have very little discretionary income. Thus, the ongoing cost to maintain a home can become.
a real burden on the family's economic well-being. It is therefore necessary to balance the
. objective to increase home ownership opportunities against the ongoing economic
considerations. •
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