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File Number: 12 -059 an average of 7 loans and 25 grants. It has been a popular housing program, particularly the grants, which benefits very low income homeowners, particularly fixed income seniors. Under Scenario A, $90,000 in funding for this program is recommended using federal CDBG funds which will enable at least 15 grants per year. Under Scenario B, $55,000 in funding from general funds is recommended in addition to the $90,000 from federal CDBG funds for a program total of $145,000 which will fund about 25 grants per year. Both scenarios eliminate the loan program - which is labor intensive to administer and requires more technical capacity - and provide for a grant only program. First -Time Homebuyer & BMR Program - This program has been annually funded in recent years with $355,000 in RDA Set -Aside funds as follows: $300,000 for low interest loans (maximum loan is $30,000; funds = 10 loans /year) $55,000 for FTHB and BMR administration (outsourced to Bay Area Homebuyer Agency and includes 2 annual free homebuyer seminars, annual post - purchase workshop, individual homebuyer counseling, monitoring of FTHB loan and BMR units, fee for re- selling /re- financing existing BMR units) Based on actual program results over the last five years, the program has annually averaged 10 down payment assistance loans. Both scenarios eliminate the down payment assistance loan program, which is labor intensive and requires technical capacity, and continue the existing services under FTHB /BMR administration including the free annual seminars and monitoring. Scenario A includes funding of $30,000, while Scenario B increases funding to $35,000 for additional seminars and individual counseling as needed. Rent Review Board Program - This program has been budgeted under the General Fund in recent years for about $3,300 annually. The cost of the program increases when the Rent Review Board meets more often. The Rent Review Program was established in the Municipal Code in 2001. While the Rent Review Board meets infrequently and cyclically dependent on the rental housing market, staff also responds to public inquiries weekly regarding rent increases and eligibility for a Board hearing and submits an annual rental market /program report to Council. Under Scenario A, there would be sufficient staff to administer this program. Under Scenario B, there will not be sufficient Housing staff and alternatives would need to be explored. Fair Housing Services - Addressing and furthering fair housing or housing discrimination is a Federal and State requirement. Typically the City outsourced this duty to the nonprofit ECHO Housing, which counsels San Leandro residents (including landlords and tenants) on fair housing laws, conducts a regional annual fair housing audit, and provides public education /outreach, and funded ECHO from federal CDBG funds. As noted above, CDBG funds have been significantly cut for FY 2012 -13 which negatively impacts the City's ability to fund ECHO Fair Housing Services. While no funding is recommended for ECHO under Scenario A, $10,000 for ECHO is recommended under Scenario B to offset the loss of CDBG funding. Committee Review and Actions The Finance Committee discussed this item at the February 3, 2012 meeting. Meeting minutes are attached. City of San Leandro Page 5 Printed on 211012012