CRA 98-08-10MINUTES OF A REGULAR MEETING OF THE
CYPRESS REDEVELOPMENT AGENCY
HELD
AUgUSt 10, 1998
Agency Chairman Jones called the meeting of the Cypress Redevelopment Agency to
order at 9:10 p.m., Monday, August 10, 1998, in the Council Chamber, 5275 Orange Avenue,
Cypress.
PRESENT:
ABSENT:
Agency Members Bowman, Carroll, Keenan, Piercy and Jones
None
MINUTES: It was moved by Agency Member Keenan and seconded by Agency Chair Jones
to approve the Minutes of June 22, 1998. The motion carried with the following roll call
vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
4 AGENCY MEMBERS: Bowman, Keenan, Piercy and Jones
0 AGENCY MEMBERS: None
0 AGENCY MEMBERS: None
I AGENCY MEMBERS: Carroll
STATUS REPORT AND PROPOSED MODIFICATIONS TO THE HOME ENHANCEMENT LOAN PROGRAM:
At the request of the Acting Executive Director, the Redevelopment/Economic
Development Manager presented the staff report, which intended to update the Agency
Board on the current status of the program (including staff marketing efforts) and
describe the policy for processing applications on a first come, first serve basis. In
addition, Agency Chair Jones had requested that the Agency Board consider two
proposed modifications to the Home Enhancement Loan Program (HELP II): 1) offer
grants to very low income homeowners, and 2) reserve a portion of HELP II funds for very
low income homeowners to ensure that they are able to participate. Application packets
are mailed out in sets of 20 the first week of every month. To date, over 60 application
packets have been mailed to interested homeowners.
Agency Chair Jones shared some of the concerns she had raised with staff regarding this
program. It had come to her attention that all of the funds could potentially be
expended on families that may have the means to pay for home repairs. It is imperative
that the City reach out to the very neediest of the citizens in the community and try to
benefit them with their home improvements. The other concern was that. without
funds set aside for the very low income, all the funds could be used up by moderate
income families and not benefit the people that need help the most.
Agency Member Keenan commented that setting aside the $200,000 reserve for the very
low income addresses his concern with the first come, first serve basis. He agreed with
the proposed changes.
At the request of Agency Member Keenan, the Redevelopment/Economic Development
Manager explained that, under Redevelopment law, the Agency Board is required to
spend 20% annual tax increment specifically for affordable housing purposes and these
monies are from the housing set aside fund. He said staff research revealed other cities
with similar programs perform special marketing efforts to attract elderly households
and most cities offer outright grants without any further obligation.
Agency Member Carroll stated that the program should be modified in response to the
market, determine what the market is and why the request to change the program.
Agency Chair Jones said she thought a grant might be something for the Agency Board to
consider for elderIv households. Over 50% of the funds are for moderate income families
and with an income of $78,000 per year, they have enough money available to make
home improvements.
Agency Member Bowman said grants should not be an inducement for people to improve
their property no matter what their age. The first category to receive funds should be
the very low income group. He felt that people who can't afford to buy a home would
have a problem with giving away funds to people who own property, don't take care of it
and don't have to pay the money back. He suggested that the Agency Board prioritize
who should get the money and that would be the very low income and low income, then
exhaust those funds before allocating to the moderate income and not change the rest
of the program.
REDEVELOPMENT AGENCY MINUTES AUgUSt 10, 1998
Agency Member Carroll commented that the staff has to have the flexibility to be able to
tell the Board they are not spending the money because the process is working too
slowly. He would support two-thirds of the money going to the very low and low income
groups. He did not agree with the five year amortization.
The Finance and Administrative Services Director explained that the majority of the funds
were specifically designated for very low and low income but staff didn't want to hold up
disbursement waiting for applications from the very low income group.
Agency Chair Jones suggested that before the moderate income applications are funded,
staff determine why the very low income group did not return their applications. She
asked that staff return with the response to the inquiry.
Agency Member Piercy remarked that follow-up on very low and low income applications
be done.
Councilmember Carroll said he would not be in favor of slowing down granting funds for
the moderate income group that have submitted applications just because there has
been another idea. The change should be prospective for the next round of applications.
Councilmember Bowman felt that the suggested change in the program could be made
now and still process the applications.
It was moved by Agency Member Bowman and seconded by Agency Member Piercy to
receive and file the status report; adopt as policy that priority of HELP II assistance will be
given first to very low income homeowners, followed by low income homeowners and
finally by moderate income homeowners; and direct staff to reserve $200,000 to only
assist very low income homeowners, $100,000 to only assist low income homeowners and
leave the remaining balance available to moderate income homeowners. The motion
unanimously carried by the following roll call vote:
AYES:
NOES:
ABSENT:
5 AGENCY MEMBERS: Bowman, Carroll, Keenan, Piercy and Jones
0 AGENCY MEMBERS: None
0 AGENCY MEMBERS: None
ADJOURNMENT:
Agency Chairman Jones adjourned the meeting at 9:35 p.m.
ATTEST:
SECRETARY OF THE CYPRESS
REDEVELOPMENT AGENCY
2