11/07/2000 RA RPT 09 - Laserfiche WebLink

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. CITY OF RIVERSIDE COUNCIL/AGENCY MEMORANDUM Honorable Mayor & City Council and Redevelopment Agency Date: Item No.: Novenber 7, 2000 9 Subject: Request Approval to Retain the Program Delivery Services of the Riverside Housing Development Corporation to Provide Administration and Delivery of the CDBG Housing Rehabilitation Program for the 2000/2001 CDBG Program Year for a Fee of $198,000. Background CDBG Housing Rehabilitation Program The Riverside Housing Development Corporation (RHDC) has provided the program delivery of the CDBG Housing Rehabilitation Program for the past 3 years. The RHDC markets the program, obtains applications, performs loan application underwriting, assists applicants with determining the necessary scope of work, obtains competitive contractor bids, and inspects all rehabilitation work through completion. As the applicant loans are processed, they are approved for funding by the Redevelopment Agency Board. Prior to retention of the RHDC, the program was provided in-house at an annual cost of $290,000. In addition to the direct program delivery cost, there were additional general administrative overhead costs that were allocated to the General Fund. Overall, the administration of the housing and neighborhood programs when conducted by City staff resulted in a cost to the City and CDBG programs in excess of$1 million annually. Contracting out this service has resulted in substantial administrative savings. Fiscal Impact: $198,000 in CDBG Housing Delivery Costs was appropriated as a line item in the 2000-2001 Annual Budget as Account Number 2835100-453086. The 2000-2001 CDBG Proposed Housing Rehabilitation Budget was set forth in the City's 2000-2001 Annual Action Plan that was approved and executed on May 23,2000, but was inadvertently left out of the City Council Report itemizing the 2000-2001 CDBG funded projects. RHDC's delivery costs for the Citywide Housing Program will remain at substantially the same level as last year despite the impact that HUD's new, labor intensive lead base paint regulations will have on RHDC's budget as the City's primary administrator of the Lead Base Paint regulations. Program income generated by the housing program cash flow of $198,000 will be reallocated into the delivery costs to help defray the additional cost of imposing the expanded lead base paint regulations. The new regulations went into effect September 15, 2000. RECOMMENDATIONS: That the City Council: Authorize the City Manager or his designee to execute the annual CDBG Housing Rehabilitation Technical Assistance Agreement with the RHDC for Housing Rehabilitation Delivery Services for the 2000-1 Program Year in the amount of $198,000 and additional program income as it is earned; That the Redevelopment Agency: Approve retention of the Riverside Housing Development Corporation (RHDC) to provide program delivery services for the CDBG housing rehabilitation program jointly managed by the Agency and the Development Department for FY 2000-2001. 9-1