Title
Staff Report for a Resolution Approving a Consulting Services Agreement for $150,000 between the City of San Leandro and Rebuilding Together for the Provision of Housing Rehabilitation Grants for Mobile Home Owners at Trailer Haven Mobile Home Community and City Council Appropriation of $150,000 from the General Fund Economic Uncertainty Reserves to Fund the Housing Rehabilitation Grant Program
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council adopt a resolution approving a consulting services agreement with Rebuilding Together Oakland East Bay for $150,000 to administer a Housing Rehabilitation Grant Program for the mobile home owners at Trailer Haven Mobile Home Community. Staff also recommends that City Council approve an appropriation of $150,000 from General Fund Economic Uncertainty Reserves to fund the housing rehabilitation grant program.
BACKGROUND
The Trailer Haven Mobile Home Community (Trailer Haven) is an 8.23-acre property located at 2399 East 14th Street in San Leandro. As one of nine mobile home communities in the City, it has been family-owned and operated since 1937. Trailer Haven currently consists of 139 mobile home spaces and 34 RV spaces.
In August 2016, San Leandro Mobile Home & RV Park, LP (dba Trailer Haven Mobile Home Park) purchased the property. The new owner hired Cascade Corporation Management, an experienced manufactured home property management company, to manage Trailer Haven. In September 2016, Cascade provided all 139 Trailer Haven mobile home owners with 90-day rent increase notices to take effect January 1, 2017. The rent increase averaged $117 per trailer lot or space and was in addition to the $45 sewer and water fee that Cascade implemented on the existing mobile home owners.
In its efforts to provide relief to Trailer Haven mobile home owners, the City is collaborating with Rebuilding Together Oakland East Bay (Rebuilding Together) to administer a Housing Rehabilitation Grant Program for Trailer Haven mobile home owners. Rebuilding Together (formerly Christmas in April) is a national non-profit with local affiliates. Rebuilding Together’s mission is to preserve affordable home ownership and strengthen communities through free home improvement repairs to low income households in need such as families, seniors, persons with disabilities and veterans.
Analysis
Rebuilding Together will use the $150,000 funds to repair owner-occupied Trailer Haven mobile homes at no cost to homeowners. Program applicants must meet an income eligibility requirement at or below 80% of area median income, which matches the income requirement for the City’s long-standing ownership Housing Rehabilitation Grant Program. Below are the current U.S. Department of Housing and Urban Development (HUD) 80% AMI income limits for San Leandro:
• 1 person household (Max income level: $52,650)
• 2 person household (Max income level: $60,150)
• 3 person household (Max income level: $67,650)
• 4 person household (Max income level: $75,150)
The repairs will target deficiencies due to deferred maintenance for both interior and exterior repairs. Common exterior repairs include roofs, gutters, fences, steps, porches, debris removal, landscaping and paint. The interior repairs that address safety, comfort, independence and energy efficiency include grab bars, handrails, new flooring, plumbing, electrical work, heaters, windows and energy efficient appliances. A combination of skilled staff, skilled and unskilled volunteers, cost-efficient services, and materials would be used to complete the necessary repairs.
Repair grants are limited to persons residing at Trailer Haven, and only owner-occupied mobile home units will be eligible for inspections and repairs. Rebuilding Together will conduct outreach and communicate with owner-occupied residences in the Trailer Haven community to identify eligible and interested homeowners who need and are interested in the program. Rebuilding Together will be assessing homeowners’ income eligibility through the collection of tax returns and other income documentation, such as paystubs, Social Security award letters, and proof of ownership of their mobile home units.
The contract will allow Rebuilding Together to rehabilitate a projected 42 (30%) of the 139 mobile home units at an estimated average cost of $3,000 per mobile home project. The demand for home repair is not yet fully determinable and factors that may affect residents’ participation may include personal interest level, actual need, income eligibility, and extent/cost of home improvements needed. The $150,000 budget allocates $19,560 to Rebuilding Together’s administrative budget and the remaining $130,440 for rehabilitation projects to qualified Trailer Haven mobile homeowners.
The funding for this initiative is the projected one-time receipt of $98,400 in Real Property Transfer Tax and the first three years of additional property tax estimated to be $18,000 annually.
Current Agency Policies
Not applicable.
Previous Actions
Not applicable.
Applicable General Plan Policies
Housing Element Policy 56.01, Rehabilitation of Owner-Occupied Housing -- undertake a range of programs that assist private property owners, particularly low- and moderate-income owners, in maintaining and improving the condition of their homes.
Housing Element Policy 56.08, Conservation of Mobile Home Parks - promote the conservation and rehabilitation of mobile home parks without displacing tenants or reducing the number of affordable units. Mobile home parks should be recognized as an important affordable housing resource for San Leandro’s seniors and low-income households.
Environmental Review
Not applicable.
Legal Analysis
The City Attorney’s office reviewed and approved the Consulting Services Agreement.
Fiscal Impacts
The total one time cost of this Housing Rehabilitation Grant Program for Trailer Haven is $150,000 to be funded with General Fund Economic Uncertainty reserves.
Budget Authority
Staff recommends City Council approve appropriation of $150,000 from the General Fund Economic Uncertainty Reserves to account 010-41-004-5120.
Attachment to Resolution
- Consulting Services Agreement with Rebuilding Together Oakland East Bay
PREPARED BY: Steve Hernandez, Housing Specialist II, Community Development Department