City Council
MEETING DATE: 6/22/2015
TITLE:
Title
Discussion on ADFAP & SHARP Sewer Assessment Assistance Programs
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FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council discuss and provide direction on funding options for two programs- the Assessment District Financial Assistance Program (ADFAP) and Sewer Hook-up Assistance Residential Program (SHARP)
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BACKGROUND:
Both ADFAP and SHARP programs provided assistance in the form of a deferred zero-interest loan, to low and moderate income homeowners who are subject to sewer assessments. The intent of the programs was to assure that income eligible homeowners not be in danger of losing their homes based solely on the imposition of the sewer assessment.
During the initial assessment formation meetings, residents were informed of the availability of both ADFAP and SHARP programs through the Redevelopment Agency Housing Fund. No expectation of funds being available indefinitely was conveyed.
Under State Law, residents in the Cove were required to be connected to the sewer by January 1, 2012. Under the City's Municipal Code, residents in the remainder of the City that are subject to sewer assessments are also required to connect by January 1, 2012 if sewer is available within 200 feet of the residence.
DISCUSSION:
Both Programs commenced in FY 2005/2006. Only pre-2006 home owners were eligible (post January 1, 2006 homeowners would have been aware their property was located in an assessment district and of the requirement that the property be connected to sewer). Assistance was provided on a first-come, first-served basis until funds were exhausted. Participants were required to execute a note and deed of trust, which is recorded against their property to ensure recovery of assistance when the property is sold. Assistance was only provided to homeowners who were current on their existing mortga...
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