U.S. Department of Housing and Urban Development
Office of Community Planning and Development

1996-1997 ACTION PLAN


The following priorities will be addressed in the coming program year to the extent described:

Priority A: Housing Rehabilitation Program

i. Investment Plan (Activities and Programs)

This program offers deferred payment loan to very low income homeowners or 3% interest loans to low and moderate income homeowners, with a maximum loan of $30,000. Based on past experience, Seaside expects to process a minimum of six loans a year for owner-occupants. This program is also offered to owner-investors if they agree to lease the units with the Monterey County Housing Authority under the Section 8 Program. It is anticipated that five rental units will be rehabilitated under this Program. The program also includes staff administration costs.

ii. Geographic Distribution

This program will be targeted toward the eligible portions of Census Tracts 135, 136, 137, 138, 139, 140, and 141. First priority will be for those areas that were never included in a redevelopment plan. Second priority will be those areas that were once redeveloped but is in need of rehabilitation.

iii. Service Delivery and Management

This program will be managed by the Seaside Redevelopment Agency.

Priority B: Section 8 Rental Housing Programs i. Investment Plan (Activities and Programs)

The Monterey County Housing Authority administers the Section 8 Housing Program for the whole county, including Seaside. The Hannon Assembled Apartments, a Section 236 housing project, receives 85 Section 8 assistance directly from HUD. The Housing Authority receives funding annually from the U.S. Department of Housing and Urban Development upon approval of its Section 8 Existing Housing application.

Seaside, having the largest share of Section 8 recipients in the Monterey Peninsula, will further request an increase of Section 8 Housing from the Housing Authority to accommodate those on the waiting list for rental assistance. The City has supported and will support all of Housing Authority's requests for increased Section 8 allocations.

ii. Geographic Distribution

This is a user-guided program but it is anticipated that Section 8 housing programs will be implemented in the eligible portions of Census Tracts 135, 136, 137, 138, 139, 140 and 141.

Priority C: Home Improvement Programs

i. Investment Plan (Activities and Programs)

Seaside plans to continue the House Paint Program whereby low and moderate income homeowners are reimbursed for the cost of exterior paint applied to houses. This program is also offered to property owners with housing units under Section 8 Existing Program contract with the Housing Authority.

ii. Geographic Distribution

It is anticipated that this program will be implemented in the eligible portions of Census Tracts 135, 136, 137, 138, 139, 140 and 141.

iii. Service Delivery and Management

This program will continue to be managed by the Community Development Department's Economic Development Division.

Priority D - Homeless

i. Investment Plan (Activities and Programs)

In 1996-1997, Seaside will implement the following activities, favoring the homeless:

a) Dispersal of Section 8 applications to targeted population within the City, using general funds and existing personnel. Recognizing that the homeless, the very low income, and persons with disabilities lack transportation services to Salinas to file for housing programs, the City will work with the Housing Authority to establish an outreach office in Seaside or on the Monterey Peninsula to facilitate the dispersal of applications to the homeless and persons in eminent danger of becoming homeless.

b) Preservation of Homeless Shelter Facilities - The City will cooperate with and provide technical assistance to homeless shelter providers to help maintain the quality and soundness of existing shelter facilities through such programs as Emergency Shelter Grants and Shelter Plus Care for the Homeless assistance.

c) The City will cooperate and provide technical and financial assistance, when available, with Fort Ord homeless Service Providers Coalition in its operation of emergency and transitional housing geared towards special needs population, such as persons with mental illness, individuals with substance abuse problems, and persons with HIV/AIDS.

ii. Geographic Distribution

Experience has shown that dispersal of shelter facilities is more effective than concentrations in small areas. Seaside's ordinance disperses shelters to specific zoning districts but includes provisions for unique projects, regardless of the zoning district. The City will accept applications for homeless facilities in accordance with the policies laid out in the ordinance. Already available to the providers are the special zoning regulations which exempt the following uses, for six or less persons, to be established in residential areas:

The ultimate impacts which the City hopes to through investment of CDBG funds is to provide upward mobility for low income homeless persons through support of the programs, thereby improving their quality of life.

Priority E: Down Payment Assistance to First Time Homebuyers i. Investment Plan (Activities and Programs)

The direct homeownership eligibility provision in the Housing and Community Development Act of 1974, as amended, was removed from the Act and terminated on October 1, 1995. The City proposes to provide financial assistance to low and moderate income households buying a house for the first time as their principal place of residence. A maximum deferred loan of $30,000 would be made available to eligible households to supplement the down payment in purchasing a single family house to make monthly mortgage payment affordable. Low and Moderate Income Set Aside Funds of the Seaside Redevelopment Agency will be utilized for this activity.

ii. Geographic Distribution

It is anticipated that prospective home buyers would consider the location and affordability in the eligible portions of Census Tract 135, 136, 137, 138, 139 and 140. Although housing is generally considered to cost relatively less in some areas, some of these tracts may contain housing which may be identified as moderate.

iii. Service Delivery and Management

This program will be managed by the Community Development Department.

Priority F. Property Acquisition

i. Investment Plan (Activities and Programs)

The City has committed CDBG funds to the purchase of the old Bay Paper site on Canyon Del Rey Boulevard adjacent to the Embassy Suites Hotel, now under construction. This land is to be used for development of a visitor serving commercial use pursuant to the goals and policies of the Laguna Grande Redevelopment Plan.

ii. Geographic Distribution

The site is located at 1271 Canyon Del Rey Boulevard.

iii. Service Delivery and Management

This program will be managed by the Seaside Redevelopment Agency.

Priority G. Commercial Facade Improvement Program

i. Investment Plan (Activities and Programs)

The Commercial Facade Improvement Program provides financial assistance to business and commercial property owners to beautify the outside appearance of their commercial buildings. The City intends to assist up to seven businesses through this program.

ii. Geographic Distribution

The program could be used city wide in any commercial development, although it is anticipated that the primary focus will be in Fremont/Broadway area where the majority of the older businesses in the community exist.

iii. Service Delivery and Management

This program will be managed by the Seaside Redevelopment Agency.

Priority H. Public Works Improvements

i. Investment Plan (Activities and Programs)

The City shall undertake public improvements to support redevelopment activities in the City Center Revitalization Area Redevelopment Project Area including the construction of curbs, gutters and sidewalks, street resurfacing, storm drainage system, relocation and/or undergrounding of overhead utilities, street lights installation, and other public works improvements.

The City will apply for a Section 108 Loan Guarantee Program to be used for these improvements. The Section 108 Loan Guarantee Program fundamentally differs from previous HUD development programs, in that Section 108 funds are extended as loans. Localities are responsible for full repayment of Section 108 notes by pledging future CDBG funds towards repayment. The City anticipates a Section 108 loan application of approximately $3.2 million.

ii. Geographic Distribution

This activity is located in Census Tract 137, which is bounded by La Salle Avenue, Fremont Boulevard, Sonoma Avenue, and Noche Buena Street, and in Census Tract 140, on Broadway Avenue, from Fremont Boulevard to Del Monte Boulevard.

iii. Service Delivery and Management

This program will be managed by the City's Public Works Department.

Priority J. Youth & Education Center

i. Investment Plan (Activities and Program)

The City has purchased a site adjacent to the Swim Center for the development of a teen activity center. Funds will be allocated for the acquisition and installation of a modular building . It is anticipated that the Youth and Education Center will serve the recreation needs of 180 youth.

ii. Geographic Distribution

The Youth and Education Center is to be located next to the Swim Center at 1148 Wheeler Street.

iii. Service Delivery and Management

This program will be managed by the City's Community Services Department.

2. Sources of Funds

The City will utilize $4,316,000 in CDBG funds and local funds during Program Year 1996/97. The sources of these funds are shown in Table 1 and described below:

Formula Grant Sources. The City will receive a CDBG grant in the amount of $606,000 for Program Year 1996-97. The City will also apply for a Section 108 Guaranteed Loan from HUD in the amount of $3,030,000.

Program Income. The City will receive $130,000 in program income for Program Year 1996-97.

Unallocated Funds. The City will utilize $250,000 in unallocated CDBG funds during Program Year 1996-97.

In addition to the CDBG funding described above, the City will utilize approximately $300,000 from the Low and Moderate Income Housing Set-Aside Funds of the Seaside Redevelopment Agency for the Down Payment Assistance to First Time Homebuyer Program.

Table 1: Sources of Funds

Second Year Action Plan to the Five-Year Consolidated Plan
July 1, 1996 to June 30, 1997

Entitlement Grant (Including reallocated funds) $ 3,886,000
Unprogrammed Prior Year's Income not previously reported 0
Surplus Fund 0
Seaside Redevelopment Agency Housing Set Aside Funds 300,000
Total Estimated Program Income (from detail below) 130,000
Total Funding Sources $ 4,316,000

Estimated Program Income

Description Grantee Subrecipient
Rehabilitation Loan Payments 71,200 0
Rent Income - 1284 Broadway Avenue 22,800 0
Rehab Loan Payoffs 20,000 0
Wells Fargo Bank Releases 16,000 0
Total Estimated Program Income $130,000 0

3. Priorities for CDBG Funds

Seaside's CDBG program in past years placed emphasis on conserving its housing stock through rehabilitation, public services, and economic development activities in order to create new jobs for low and moderate income persons. Priorities for the 1996-97 Action Plan will have to include housing activities as identified in the needs assessment prior to allocating CDBG funds to non-housing related projects. The relative importance to be assigned to neighborhood facilities, public works improvements and economic development activities in this Plan is open to a considerable range of choices depending on the perceived priorities and identified needs of the City.

In analyzing the identified needs relating to housing and economic development, it is apparent that certain problems and opportunities are localized in their geographic distribution, while others tend to be dispersed throughout the City. Problems with substandard housing tend to be concentrated in the older central portions of the City, while problems with over-crowding and over-payment for housing are more widely distributed. Factors such as these should be used in assessing alternative approaches for CDBG funded actions to ensure that appropriate measures will be proposed in those areas where the needs are most pronounced, and where the impact of the program activities will be the greatest.

Community-wide Housing Strategy

Housing activities for the benefit of the very low income persons and low and moderate income persons will continue to receive the highest priority in the annual action plan.

Public Facilities and Improvements

Public improvements needed to be installed or constructed in all redevelopment project areas to carry out the goals and objectives of the redevelopment plans will receive a high priority in the annual action plan. Such public improvements include, but are not limited to, streets, curbs, gutters, sidewalks, street lights, sewers, storm drains, traffic signals, electrical distribution systems, off-street parking, landscaped areas, and undergrounding of existing utilities. Provided the activity is eligible under the CDBG program, the first step in developing a strategy for public facilities and improvements, the relative priority of this general program and perhaps a dollar allocation would be established. Specific projects can be identified according to their priority within the general range of potential activities. CDBG funding might be used most effectively as seed money to develop specific project proposals and pursue other funding opportunities as they present themselves.

Public Services

To be eligible for CDBG funding, public services must be either a new service or a quantified increase in the level of service provided in the City over the past 12 months. Funding for public services is limited to a maximum of 15% of the upcoming CDBG entitlement plus program income from prior year.

Economic Development

The following items are examples of economic development activities:

  1. New Commercial investment and development - one example of an activity to encourage the location of new business development in Seaside which is eligible for CDBG funding would be site acquisition and preparation.

  2. Rehabilitation of existing commercial buildings - Many of the commercial establishments along Fremont Boulevard, Del Monte and Broadway are in need of physical improvement to remodel obsolete facilities and improve the external appearance of structures and sites.

  3. Training and Counseling - Service programs providing job training, counseling and other job related types of assistance could be established and funded under the CDBG program if it will benefit primarily low and moderate income persons.

4. Program Specific Expenditures

The City Council proposes to adopt an expenditure program for the $4,186,000 in CDBG funds and local housing funds for FY 1996/97 which is shown on the lists of proposed projects in Appendix B. Adopted expenditures by category are:

Category Expenditure
Housing Ownership, Rehab and Paint Programs 476,000
Commercial Facade Improvement Program100,000
Youth & Education Center 270,000
Public Works Improvements 3,240,000
Acquisition of Real Property 90,000
CDBG Administration 140,000
Total $ 4,316,000

5. Anti-poverty Strategy

The City has always been concerned about poverty but early on recognized the need of its citizens to live in a decent, safe and sanitary housing in good neighborhoods. Its first three redevelopment projects were exclusively residential and provided good housing in an urban environment. The fourth and fifth projects were economically oriented and created the Gateway Auto Center and the Laguna Grande Shopping Center which in turn created jobs and improved the City's tax base.

Nevertheless, the City is a bedroom community and needs more jobs. The update of the City's General Plan includes a proactive program for economic development. Business Retention Officer and Business Development Officer positions were established in the Economic Development Division. Although seen as economic development issues, the programs clearly support housing problems in several ways:

  1. People with jobs can get housing.

  2. People can upgrade to better paying jobs to reduce their cost burden.

  3. People with more income can perform improvements to their homes.

  4. People with better jobs improve their chances for first time home ownership.

It is the City's policy that the current push for economic development is consistent with, and an integral part of its housing strategy and goal to improve the qualify of life for its residents.

6. Monitoring Plan

The City of Seaside will monitor progress on activities undertaken with CDBG funds as part of its on-going monitoring procedures. This includes sub-recipients of CDBG funds and an annual review of each sub-recipient's project implementation progress. The City is committed to ensuring that funds are used as specified in state and federal regulations through: public and City Council monitoring through public hearings, HUD monitoring, and periodic reports to the Planning Commission and City Council; regular progress review meetings; staff evaluation; annual evaluation of priorities; periodic site visits and program evaluations; financial monitoring, record keeping, and reporting requirements; and notification of non-compliance.

Project Table

table providing information about the project(s).
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