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File Number: 12 -335 recommended changes to the program: Merge the existing six separate grants into a single minor home repair grant not to exceed $5,000 Currently, there are six separate grants available to eligible San Leandro homeowners with varying maximum funding limits: 1) minor home repair ($2,000 maximum), 2) exterior paint ($3,000 max), 3) exterior clean -up ($1,000 max), 4) accessibility ($5,000 max), 5) seismic strengthening ($5,000), and 6) mobile home repair ($5,000 max). Current policy also allows staff to approve combination grants (e.g., accessibility and exterior paint) not to exceed $5,000. The establishment of a single minor home repair grant category of up to $5,000 (which includes exterior paint, exterior clean -up, accessibility, seismic improvements and mobile home repairs as eligible activities) will streamline the intake and marketing of the program. Set five years as the grant application eligibility limit: The existing six grants have varying time limits in which applicants can re -apply for them if necessary. Minor home repair, mobile home repair, and exterior clean -up have five (5) year limits while accessibility, exterior painting and seismic strengthening have 10 year limits. For instance, an applicant may not re -apply for a grant for another five or 10 years based on need. To simplify the program, staff recommends making the eligibility limit for the proposed single minor home repair grant every five years. Staff, though, will continue to give priority to first time grant applicants whenever feasible versus applicants who are re- applying after the five year limit. Increase income eligibility for the single minor home repair grant to low income households (<_ 60% area median income): The existing six grants have varying income eligibility levels. For example, the seismic strengthening grant has a low income limit while the other five grants have a very low ( <_ 50% AMI) income threshold. In recent years, the program has received inquiries from households who are slightly above the very low income limits but are still in need but had to be denied funding. To simplify program administration, staff recommends making the proposed single minor home repair grant eligible to low income households at 60% AMI. See Attachment A for the City's current income limits at 50% and 60% AMI. Allow Community Development Director discretion to approve grants exceeding $ 5,000: To more flexibly and quickly address emergency, hardship or other urgent health /safety situations, the Community Development Director should have the authority on a case -by -case basis to approve grants exceeding the $5,000 limit. Generally, the Community Development Director will limit his /her approval to exceed the maximum grant limit by the lesser of 25% of the grant request or $6,000. However, the Community Development Director should also have the authority to go beyond this limit when necessary and based on the urgency of the homeowner's needs. Allow Community Development Director discretion to approve existing Housing Rehab Program loan recipients for cash out refinancing based upon documented need or hardship (e.g., health /safety- related home improvements, critical health /medical costs) This change applies only to homeowners with existing rehab loans as the loan program has been discontinued since July 2011. The existing refinancing policy has been that the City will subordinate its rehab loan for no cash out City of San Leandro Page 2 Printed on 612612012