DATE: June 18, 2024
TO: Paul Buddenhagen, City Manager
FROM: Chadrick Smalley, Community Development Director
SUBJECT: Resolution Of The City Council Of The City Of Emeryville Adopting The Program Guidelines For The Emeryville Accessible Living Initiative
STAFF RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution approving the Program Guidelines for the Emeryville Accessible Living Initiative (EALI).
BACKGROUND
The City identified the importance of housing accessibility for seniors and people with disabilities in two recent plans. In the 2022 Age Friendly Action Plan, the City prioritized Housing Domain Action Step #2: Increase awareness and utilization of housing rehab programs that focus on the accessibility improvements targeted for senior homeowners and tenants. Similarly, the 2023-2031 Housing Element established Goal #2: Conserve and improve the condition of the existing housing stock to enhance the livability of neighborhoods for all residents and Policy H-2-1: Facilitate the rehabilitation of the City’s existing housing stock to correct housing deficiencies, increase useful life, and increase accessibility for all residents.
Accessible elements for people with disabilities are well-recognized needs. Currently, there is a growing emphasis on "aging in place," allowing individuals to stay at home rather than moving to institutional care as they age. Supporting accessible infrastructure enables communities to facilitate aging in place.
In 2023, the City successfully applied for $575,000 in funds from the California Housing and Community Development (HCD) Department’s Prohousing Incentive Pilot, codified in California Health and Safety Code Chapter 2.5 Sections 50470 through 50475. In that application, the City proposed to create an accessibility improvement program which would help property owners increase the accessibility of existing housing stock in Emeryville and make aging in place more feasible. The City and HCD executed a grant agreement on January 25, 2024. The program guidelines and grant agreement specify that the City must expend and invoice HCD for all funds by March 30, 2025 (the “Invoice Deadline”), to meet the expenditure deadline of June 30, 2025 (the “Expenditure Deadline”). HCD may modify the Invoice Deadline under special circumstances but may not extend the Expenditure Deadline, which is set by statute.
DISCUSSION
Staff researched a variety of other local rehabilitation and accessibility loan programs in order to understand how these programs are structured in other jurisdictions. Staff also conducted a survey of residential property owners and residents in March 2024 in order to learn more about local accessibility needs and presented the findings from that survey to the Housing Committee on April 3, 2024.
Survey Results
Forty individuals submitted responses to the resident survey and 24 of them identified they were interested in accessibility improvements for a rental unit while the remaining 16 were interested in homeowner accessibility improvements. Fourteen individuals submitted responses to the property survey, and all were interested in common area accessibility improvements, except two respondents that were only interested in individual unit accessibility improvements.
Respondents to the Property Survey were allowed to select as many accessibility improvements as they were interested in, and the most selected improvement was the installation of easy-to-open doors. Installation of handrails, replacement of lighting, installation of lever-type hardware on doors and installation of seating in common areas tied for second most selected improvements (see Chart 1).
Chart 1: Common Area Property Accessibility Improvements Respondents to the Resident Survey were also allowed to select as many accessibility improvements to individual units as they were interested in, and the most selected improvements were installation of easy-to-open interior doors, ADA compliant appliances and installation of easy to open windows, while the second most selected improvements included installation of handrails and grab bars, replacement of lighting, installation of lever type hardware, installation of a handheld adjustable showerhead, installation of a shower seat and an ADA compliant toilet (see Chart 2).
Chart 2: Individual Unit Accessibility Improvements
Staff drew upon this information, as well as guidance provided by the Housing Committee and other rehab improvement programs to develop the attached draft guidelines for the Emeryville Accessible Living Initiative (EALI). Key aspects of the program are outlined below.
Eligible Borrowers
Individual homeowners who are either 62 or older or who have a physical or sensory disability. Homeowners are also eligible if their unit is occupied by a tenant who requires these improvements and will agree to tenant protections.
Home Owners Associations (HOAs) seeking improvements to common areas.
Owners of multiunit rental property that are subject to recorded affordability requirements enforceable by a local, state or federal government agency, lasting at least five more years from the completion of accessibility improvements (Affordable Rental Property).
Eligible Activities
Homeowners are eligible to apply for funding for improvements to their own homes. Eligible capital improvements for a homeowner’s individual condominium or house include:
Non-slip, evenly textured flooring, and floor coverings Handrails
Ramps or stair lifts
Easy-to-open windows
Adequate and even lighting throughout and in task areas like the kitchen sink and counters Motion sensor night lights
Accessible kitchen or bathroom cabinetry and counters
Lever hardware for doors
Bathroom: walk-in or no threshold shower (with appropriate drainage), permanently installed grab bars, handheld/adjustable showerhead, permanently installed shower seat (not flip down style, which can be a safety hazard), ADA compliant toilet, glow in the dark light switches Kitchen: ADA compliant appliances
Doorbells with adjustable volume and strobe signaler
Improvements to exterior areas for safety and accessibility, if the improvements are made to the homeowner’s individual property (not an HOA common area) Architect or design services for accessibility improvements, if required Installed smart home systems that do not require a monthly service fee HOAs and Affordable Rental Property Owners are eligible to apply for funding for accessibility improvements in interior or exterior common areas, in multiunit housing:
New or improved indoor and outdoor lighting – sufficient and consistent light levels, reduction of glare Non-slip, evenly textured flooring and walking surfaces and exterior pedestrian paths Weather protection for exterior stairs
Easy-to-open windows
Handrails on pathways
Common area bathroom ADA compliance
Doors – easy open and automatic open, lever door handles Interior and exterior wayfinding signage
Access ramps or stair lifts
Strobe light or vibrator-assisted smoke and security alarms Accessible elevator improvements
Architect or design services for accessibility improvements if required Note: Borrowers in multiunit buildings built before accessibility requirements were added to the building code (1992) will not be required to perform every modification to bring the building to date with current code but may be required to select improvements in a certain priority sequence in order to comply with the building code, which will be identified in the permit application process.
Financing
The program has been designed to create a Homeowner Loan Pool with $285,000 in available funding and a HOA/Affordable Property Loan Pool with $270,000 in available funds. The goal is to assist six HOAs and/or Affordable Properties, and 19 homeowners, which surpasses the benchmark accepted by the State in the Prohousing Incentive Pilot application and award process.
The loan terms will vary depending on the borrower type, since there are different structural, legal, and financial factors for each type. Proposed terms include:
Individual homeowners are eligible to borrow up to $15,000 as a secured, deferred loan with 3% simple interest accruing for a 5-year period. The loan can be repaid at any time without prepayment penalty. Otherwise, principal and accrued interest will become due at property sale or transfer. Homeowners who have an income at or below 80% of area median income at the time the loan is made, will have the loan and accrued interest forgiven 10 years after the improvements have been completed if the home has not been sold or transferred during the 10-year period.
HOAs will be eligible to borrow up to the lesser of $45,000 or 50% of actual project costs. Funding will be provided as a 3% simple interest loan, with a 10-year amortization period and bi-annual payments. These loans will be unsecured or secured by a pledge of assessments paid by homeowners.
Affordable Properties will be eligible to borrow up to the lesser of $45,000 or 50% of project costs as a secured, deferred loan with 3% simple interest loan accruing for a 10-year period. The loan can be repaid at any time without prepayment penalty. Otherwise, the loan and accrued interest will be forgiven 10 years after the improvements have been completed if the property has not been sold or transferred during the 10-year period.
Application Process
The City will accept applications from Homeowners, HOAs, and Affordable Rental Properties during a defined application period. Applications will first be marked with the date and time of submittal, and then reviewed for completeness. All applications from Homeowners will be reviewed together, and all applications from HOAs and Affordable Rental Properties will be grouped together for review. Due to the State’s spending deadlines for the funds, the City will reject substantially incomplete applications.
All applications will be assessed by the following criteria:
The relationship between the needed improvements and their impact on the activities of daily living. Improvements for immediate health and safety needs will be prioritized.
The appropriateness of the proposed budget for the proposed activities. Proposals that have a realistic funding plan will be prioritized.
There will be a priority for improvements that can realistically be largely completed by March 31, 2025, in order to ensure compliance with the State’s funding requirements.
Homeowner applications will additionally be prioritized into three tiers based on the applicant's income range, with households having incomes below 80% of AMI being the highest priority, and households above 120% of AMI being the lowest.
HOAs and Affordable Rental Properties will additionally be evaluated based on:
The number of households who will be served by the improvements.
The amount of leverage through either reserves or other methods, whether it exceeds the 50% required and if so, by how much. Developments demonstrating more leveraged funds will be rated more highly.
Loan Closing Requirements
Applicants recommended for award will be required to execute a variety of loan documents, select their contractor, provide an updated copy of the insurance binder with the City listed as a Loss Payee, and obtain building permits (if required) prior to closing on the EALI loan.
Other Requirements
Timeline: All loan agreements must be executed by January 31, 2025. All invoicing must be submitted to the HCD by March 31, 2025. All work must be complete by June 30, 2025.
State Prevailing Wage: Multi-unit properties will be required to comply with Prevailing Wage.
Change Orders/Cost Over-Runs: All changes to the approved scope of work after loan closing must be reviewed and approved by the City. The Borrower is responsible for any cost overruns in excess of the approved loan amount.
Tenant Protection Requirements: Homeowner must notify tenants of EALI scope of work, timeline to complete work and tenant protections available to them. Tenants shall not be relocated during course of EALI work to be performed. Rental rates shall freeze for 12 months from completion of EALI work and shall be limited to no more than a 5% rent increase annually for 5 years.
Compliance Monitoring: Homeowner will be required annually to confirm the occupancy status of their home and for tenant occupied property to confirm the rental rate for the unit. HOA and Affordable Rental Housing borrowers shall be required to confirm the property remains insured while the loan remains outstanding.
Exceptions: The City Manager has sole authority to waive any of the guidelines, on a case-by-case basis, if deemed necessary to achieve program objectives and expenditure timelines.
Fiscal Impact
Adopting the EALI Program Guidelines will enable the City to expend the $575,000 received from the State Prohousing Incentive Pilot grant consistent with the grant requirements. No City General Funds will be awarded through this program.
Staff Communication with the Public
The Housing Committee reviewed the survey results and discussed priorities for EALI at its April 3, 2024, meeting. The EALI draft guidelines were reviewed for recommendation at the June 5, 2024, Housing Committee Meeting and the June 12, 2024 Commission on Aging Meeting. Comments from both committees were not available at the time this report was drafted.
Conclusion
Staff recommends that the City Council approve the attached resolution adopting the EALI Program Guidelines PREPARED BY: Valerie F. Bernardo, Community and Economic Development Coordinator II Approved and Forwarded to the
City Council of the City of Emeryville:
Paul Buddenhagen, City Manager
ATTACHMENTS:
Draft Resolution, including Exhibit A: Emeryville Accessible Living Initiative Guidelines Accessible Living Initiative
| June 18, 2024
City of Emeryville
CALIFORNIA
MEMORANDUM