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HomeMy WebLinkAboutCity Council Resolution 02-064RESOLUTION NO. 02-064 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ADOPTING INTERIM CDBG FUNDING PROGRAM GUIDELINES FOR SEPTIC ABATEMENT WHEREAS, the Sazatoga City Council has adopted a septic tank abatement ordinance that applies to all properties within the City; and WHEREAS, the City Council has allocated Community Development Block Grant funds to assist qualifying property owners who would otherwise be unable to comply with the ordinance requirements due to financial hazdship; and WHEREAS, the City Council has appointed two Council members to participate in a Sub- committee to review all applications for septic abatement hazdship requests. NOW, THEREFORE, be it resolved that the City Council of the City of Saratoga hereby adopts Interim CDBG Funding Program Guidelines for Septic Abatement as depicted in the attached Exhibit A. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Saratoga this 7th day of August 2002, by the following vote: AYES: Councilmembers Stan Bogosian, John Mehaffey, Ann Waltonsmith, Vice Mayor Evan Baker, Mayor Nick Streit NOES: None ABSTAIN: None ABSENT: None Nick Streit, Mayor Exhibit A CITY OF SARATOGA CDBG FUNDING PROGRAM GUIDELINES FOR SEPTIC ABATEMENT SPONSOR Community Development Department 13777 Fruitvale Avenue Saratoga, CA 95070 Phone: Lata Vasudevan - 868-1235 PURPOSE To provide grants to eligible low income homeowners in the City of Saratoga who are required to connect to the public sanitary sewer facility pursuant to Section 7-10.080 of the City of Saratoga Municipal Code. GRANT LIMITS The maximum grant amount is based on the costs associated with septic abatement including connection to the sanitary sewer system, sanitation permit fees, construction cost and building permit fees. The applicant shall be responsible for submitting to City Staff, three bids from qualified contractors to do the connection work. PROPERTY ELIGILIBITY REQUIREMENTS 1. The property must be located within the boundaries of the City of Saratoga and shall be owner occupied. 2. There shall be proof that the Health Officer of the City of Saratoga has made the determination that a connection to an approved public sanitary sewer is required. APPLICANT ELIGILIBITY REQUIREMENTS 1. Annual household income shall be less than the current HUD Program Income Limits for low income households, and shall be based on the 12 month period prior to the application date. To be eligible, household income, as defined in 24 CFR 5.609, shall be less than the following for each household size (HUD Income Guidelines for Santa Clara County jurisdictions effective 01/30/02 and subject to change): 1 Person Household $51,950 2 Person Household $59,400 3 Person Household $66,800 4 Person Household $74,250 5 Person Household $80,200 6 Person Household $86,200 7 Person Household $92,050 8 Person Household $98,000 2. SUBSTANTIAL RESOURCES - If an applicant's current assets plus fixed assets (excluding two vehicles, the subject property and its furnishings and fixtures) total in excess of $50,000 that applicant is determined to have substantial* resources and does not qualify for a grant to connect to the public sanitary sewer facility. *Substantial assets include rental property and sources of income such as the interest and dividends from IRA's, stocks, bonds, mutual funds not necessarily reported on an income tax form. Additional sources of income not included in substantial assets are pre-tax payroll deductions, such as deferred comp, 401K, health or dependent care. If substantial sources of income can be converted easily into cash without a penalty, and equals over $50,000, the applicant does not qualify for a grant. GRANT APPLICATION REVIEW 1. ASub-committee composed of two City Council members shall review all applications. 2. The application evaluation shall include a review of employment/income verification, mortgage verification, credit history, savings/checking deposit verification, and review of current and fixed assets. 3. Applications that do not satisfy the eligibility criteria set forth herein shall be denied. 4. For applications that satisfy the eligibility criteria, the Sub-committee shall recommend to the City Council the grant amount (if any) to be awarded based on the three contractor estimates, but shall not select the contractor. 5. If a grant is awarded by the City Council, grant payments shall be made directly by the City to the performing contractor chosen by the applicant. The grant amount to cover the cost of the sanitation and building permits shall also be paid directly by the City to the appropriate agencies.