A: STATEMENT OF ACTIVITIES

A: STATEMENT OF ACTIVITIES 1. TYPE OF CONDITIONS FOR FINANCIAL ASSISTANCE The County of Fresno is applying to USDA, Rural Development for Housing Preservation Grant (HPG) program funds in the amount of $50,000 to assist three (3) very-low to low-income owner-occupied households with the rehabilitation of their homes. The type of financial assistance provided with HPG funds will be a grant not to exceed $15,000 per household that may be layered with a County Housing Assistance Rehabilitation Program (HARP) loan, or may be a grant only that is for minor needed repairs and/or improvements such as roof repair/replacement, well repair/replacement, or handicap accessibility. The conditions for eligibility of a HPG grant will be limited to owner-occupant households with incomes at or below 80% of area median income (AMI) who live in the rural and unincorporated communities of Fresno County. The County is proposing that, if selected for funding, it will be able to assist Three (3) households, one of which will be a household earning at or below 50% of the area median income for Fresno County. It is further proposed that HPG funded activities will take place in Fresno County s rural areas with populations of 10,000 or less. The County proposes to leverage HPG funds with USDA Section 504 Loan/Grant, Community Development Block Grant (CDBG) funds or HOME Investment Partnerships Program (HOME) funds to further enhance the efforts provided through the HPG funds. The County s Housing Assistance Rehabilitation Program (HARP) is an activity of the County s Affordable Housing Program that provides loans and technical assistance to income eligible homeowners for the rehabilitation of their home. The HARP loans are zero interest and require a minimum payment of $40 depending on household income. HARP is funded with County CDBG or HOME dollars. It is anticipated that when the HPG funds are layered with the Section 504 Loan/Grant, CDBG or HOME funds, the combined funds will assist additional households beyond those currently assisted with CDBG or HOME funds only. However, it is also recognized that many lowerincome households are reluctant to further encumber their properties or do not have equity sufficient to qualify for a loan. For applicants in need of minor rehabilitation only or the replacement of a well, an HPG grant may be the only source of funds used to complete the needed repairs. Therefore, the County requests the flexibility to determine on a case by case basis whether HPG will be layered with other funds, or if an HPG grant only is sufficient. The County of Fresno recently experienced a severe drought and there are several households that need to drill a new well. Many of the homeowners requesting assistance with their wells do not qualify for HARP assistance due to lack of equity in their homes. Recently the funding the County has been able to utilize to assist these applicants has been HPG, the award of the 2017 HPG funds would allow the County to assist residents that we would otherwise not be able to assist. Overall, the County intends to leverage the HPG funds (minus administrative costs) directly with Section 504 Loan/Grant, CDBG or HOME dollars or indirectly with CDBG or HOMEfunded in-kind services, such as but not limited to HPG applicant eligibility processing and housing rehabilitation site inspections by a County Housing Rehabilitation Specialist. 2017 Housing Preservation Grant Program Statement of Activities - 1

Conditions for financial assistance from the HPG program will include the following: 1) houses must be in eligible rural areas; 2) applicant must be an owner-occupant household; 3) income must not exceed 80% of area median income for Fresno County, adjusted for household size and at least one applicant shall have an income not to exceed 50% of area median income; and 4) applicants shall have deferred maintenance needs that cannot be met through the County HARP loan program. The current median income limits for Fresno County for calendar year 2017 are as follows: Income Limits for Fresno County Household Maximum Household Yearly Income Size 30% 50% 60% 65% 80% 100% 1 $ 12,600 $ 21,000 $ 25,200 $ 27,250 $ 33,550 $ 41,930 2 $ 14,400 $ 24,000 $ 28,800 $ 31,150 $ 38,850 $ 47,930 3 $ 16,200 $ 27,000 $ 32,400 $ 35,050 $ 43,150 $ 53,930 4 $ 17,950 $ 29,950 $ 35,940 $ 38,910 $ 47,900 $ 59,870 5 $ 19,400 $ 32,350 $ 38,820 $ 42,040 $ 51,750 $ 64,680 6 $ 20,850 $ 34,750 $ 41,700 $ 45,170 $ 55,600 $ 69,500 7 $ 22,300 $ 37,150 $ 44,580 $ 48,260 $ 59,400 $ 74,250 8 $ 23,700 $ 39,550 $ 47,460 $ 51,390 $ 63,250 $ 79,060 Source: U.S. Dept of HUD 05/2014 The County intends to limit HPG funds to one household earning no more than 50% AMI and an additional two households earning no more than 80% AMI for a total of three (3) HPG-funded households. The income chart below is extrapolated from Department of Housing and Urban Development income limits for fiscal year 2014. Income Limits for Fresno County HPG Household Size 2 Households at or below 50% AMI* 2 Households at or below 80% AMI* 1 $ 21,000 $ 33,550 2 $ 24,000 $ 38,850 3 $ 27,000 $ 43,150 4 $ 29,950 $ 47,900 5 $ 32,350 $ 51,750 6 $ 34,750 $ 55,600 7 $ 37,150 $ 59,400 8 $ 39,550 $ 63,250 *Area Median Income Source: U.S. Department of Housing and Urban Development FY 2017 Applications meeting the threshold requirements for HPG assistance will continue through the application selection process described in Section 2 below. 2017 Housing Preservation Grant Program Statement of Activities - 2

2. APPLICANT SELECTION PROCESS Eligible applicants will live in rural Fresno County as defined by the map (included with this preapplication) outlining the boundary for the rural area of Fresno County. It is expected these areas will have populations of 10,000 or less. Income eligible applicants will have a household income not greater than 50% of AMI for one household applicant and not greater than 80% of AMI for the other 2 households. The recipients of HPG assistance will be selected from qualified homeowners that are in need of funds to complete health and safety repairs and/or improvements described in the scope of work write up for their property and for whom a County HARP loan is either not sufficient or the family does not have sufficient equity to qualify for a HARP loan. Loan Review and Approval The HPG loan and review process will follow the same procedures used for the County s Affordable Housing Program (AHP) selection procedures including income eligibility verification, owner-occupancy, and primary place of residence. Households requesting assistance are either mailed an application or are scheduled for an office visit with a loan officer or Housing Rehabilitation Specialist. When the application is complete, the loan officer will meet with the applicant for review and signature of the application. Prior to HPG grant approval the signed application and all supporting documentation (social security number, Federal tax returns, evidence of property ownership and payment of current property taxes) must be received by the County. Housing Inspection and Rehabilitation Needs A County Housing Rehabilitation Specialist conducts the initial inspection of an applicant s dwelling, to determine the scope of work needed, identifying whether the applicant is requesting assistance for minor rehabilitation of deferred maintenance items, or if the scope of work includes more extensive rehabilitation. The Rehabilitation Specialist determines the estimated cost to make the needed repairs/improvements and writes up a scope of work. The application packet is then submitted to the loan officer for processing and then to the Affordable Housing Program Manager for review and approval. Final approval of HPG assistance to the homeowner for needed repairs will be by the County s Finance Committee, which reviews and approves all housing rehabilitation grants and loans. Following grant approval, the homeowner will receive a letter notifying them of the award of grant funds and the anticipated scope of work that will be completed with the funds. The procedure and process for the construction phase of the work follows the same process as the County s HARP. A bid tour will be scheduled and interested contractors invited to view the proposed rehabilitation project. Contractors will be provided a bid packet that includes a standard construction bid proposal/contract and the scope of work, with a deadline to return completed bids. The bid proposals are submitted to the County Community Development Division and stamped with a date and time. The Housing Rehabilitation Specialist will review the submitted packets received by the deadline for completeness. Staff s review confirms all repairs identified in the scope of work are addressed, ensures that all items are reasonable in cost, and verifies that the 2017 Housing Preservation Grant Program Statement of Activities - 3

contractor has an active license, sufficient liability insurance and worker s compensation insurance, if applicable. Upon approval of an acceptable bid document package, the homeowner is provided the accepted bid proposals and is responsible for selecting a contractor from the bids received. The homeowner and contractor sign the construction agreement. The construction agreement is between the contractor and homeowner. The County is not a party to the contract. During construction, the Rehabilitation Specialist conducts progress inspections to confirm contract compliance. Local building inspectors and code enforcement officials from the County s Development Services Division conduct construction inspections to ensure compliance with applicable building codes and standards and also complete the final inspections as required by the HPG program. Although the Development Services Division is part of the County of Fresno, its work and supervision is independent from the Community Development Division, thus meeting the HPG requirements for final inspection of HPG projects by a disinterested third party. The Rehabilitation Specialist recommends and processes progress payments as specified in the work/payment schedule portion of the construction agreement. The County makes payments directly to the contractor and withholds 10% of each payment. The final payment and the 10% retention are held until the project is completed, notice of completion (NOC) is filed and all lien notices have been released. When the Rehabilitation Specialist receives unconditional lien releases from the contractor for all preliminary lien notices that have been received and the 35- day retention period is passed (35 days after the owner-signed Notice of Completion is recorded in the County Recorder s office) the 10% retention is paid to the contractor. 3. ENVIRONMENTAL IMPACTS In order to identify any potential environmental impacts, the County will follow the same procedures currently in place for its HARP projects. At the time the homeowner s application is processed, the Rehabilitation Specialist also contacts the Development Services Division, which is responsible for issuing building permits and obtains written clearance to issue permits. The Development Services Division also determines whether the house is located in a 100-year flood plain. A Rehabilitation Environmental Review form, as dictated by regulations for projects receiving Federal assistance, is completed for each project by staff in the County s Development Services Division. County procedures to identify historically significant properties are already established. The County follows standard procedures for identification and treatment of historic properties as outlined in Section 106 of the National Historic Preservation Act. After initial inspection of the home if it is determined that the house is 50 years or older, pertinent data as well as photographs of the home, are submitted to the State Historic Preservation Officer (SHPO). SHPO will determine if the house is of historical significance. The County will enter into a Memorandum of Understanding with the State Historic Preservation Officer and adhere to the rules and regulations set forth in that document. A copy of the letter to SHPO notifying that agency of the County s intent to submit a pre-application to Rural Development for HPG funds is included with this pre-application. 2017 Housing Preservation Grant Program Statement of Activities - 4

4. DEVELOPMENT STANDARDS The County s Affordable Housing Rehabilitation Standards were most recently reviewed by the Fresno County Board of Supervisors on January 28, 2014. The adopted Affordable Housing Standards will apply to all HPG-assisted housing. In addition, the County housing rehabilitation activities continue to adhere to the Fresno County Ordinance Code, Title 15, adopted by the Board of Supervisors, for construction and rehabilitation activities funded with the U.S. Department of Housing and Urban Development (HUD) funds. Requirements in Title 15 meet or exceed HUD s Housing Quality Standards. Title 15 adopts and modifies the following codes and subjects related to the Affordable Housing Program: California Building Code California Fire Code California Mechanical Code California Plumbing Code California Electrical Code California Energy Code California Residential Code Green Building Code Substandard Housing and Unsafe Structures and Nuisances Flood Hazard Areas California Department of Forestry State Responsibility Area Fire Safe Regulations of the County State standards are contained within Titles 24 and 25 of the California Administrative Code. The Farmer s Home Administration (FMHA) Thermal Standards will also be used. With regards to rehabilitation of historic properties, development standards shall be reasonable and consistent with the Secretary of the Interior s Standards (SOI Standards) for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. 5. TIME SCHEDULE The County process of accepting and processing rehabilitation loan applications is on-going throughout the year. It is estimated that HPG applications will be received and reviewed for eligibility within a few months from the time the Housing Preservation Grant Agreement is executed. The proposed schedule anticipates three (3) projects will receive HPG assistance and that a notice of funding award and execution of HPG grant agreement between Rural Development and County will be completed by October, 2017. The schedule includes a two-month allowance for miscellaneous delays and/or extraordinary circumstances. It is anticipated work will be extended over a 12-month to 18-month period and that all rehabilitation work will be completed within eighteen months following the execution of the Housing Preservation Grant Agreement. The following Work Schedule table is an estimated work schedule for HPG projects: 2017 Housing Preservation Grant Program Statement of Activities - 5

Month HPG Loan Application Number #1 #2 #3 Oct-17 A Nov-17 A Dec-17 B A Jan-18 B Feb-18 C B Mar-18 C Apr-18 C May-18 Jun-18 D Jul-18 D Aug-18 D Sep-18 E Oct-18 E Nov-18 E Dec-18 A - Take HPG Application B - Approve Application. C - Construction Start D - Recorded Notice of Completion E - Final Payment to Contractors 6. STAFFING The Community Development (CD) Division within the County of Fresno Department of Public Works and Planning administers the County s Affordable Housing Programs, including the Housing Assistance Rehabilitation Program. The CD Division and several members of its staff have over 20 years experience operating and managing rehabilitation programs for very-low and low-income households. The CD Affordable Housing staff is responsible for implementing current housing programs and will also be responsible for implementing the HPG program. The Affordable Housing staff consists of a Program Manager, who will manage the HPG program and projects, and a staff that includes one (1) Rehabilitation Specialist and one (1) Loan Officer. The HPG program administration will be the responsibility of the Community Development Affordable Housing Program Manager and Community Development Division Administration, who will manage the program from grant agreement to close-out. All of the Community Development staff and programs are managed by the Community Development Manager, who oversees the Division s daily operations. 2017 Housing Preservation Grant Program Statement of Activities - 6

7. RECIPIENT INCOME/RACE/ETHNICITY The County estimates HPG funds will assist one very-low income recipient household and two (2) low-income recipient households. Of these, the County anticipates there will be two (2) minority, and one (1) non-minority households assisted. The table below indicates the distribution of Fresno County households by Race and Income: Race / Ethnicity % of total 0-30% MFI 31-50% MFI 51-80% MFI >80% MFI Total # of Households Households % Households % Households % Households % White (non-hispanic) 124,080 42.4% 10,840 8.7% 10,710 8.6% 15,650 12.6% 86,880 70.0% Black (non-hispanic) 15,720 5.4% 4,300 27.4% 2,665 17.0% 2,320 14.8% 6,435 40.9% Hispanic (all races) 123,020 42.0% 21,800 17.7% 21,000 17.1% 25,430 20.7% 54,790 44.5% Asian (non-hispanic) 22,590 7.7% 3,105 13.7% 2,890 12.8% 3,290 14.6% 13,305 58.9% Other 7,150 2.4% 829 11.6% 799 11.2% 1,269 17.7% 4,253 59.5% Source: CHAS, May 2017 8. GEOGRAPHICAL AREA TO BE SERVED In accordance with HPG regulations, the proposed program will be undertaken entirely in less populous rural communities identified by the local Rural Development (RD) office as having populations below 10,000 in non-metropolitan Statistical Areas and in communities of less than 5,000 in Metropolitan Statistical Areas. A copy of the map marking the rural boundaries for Fresno County is included with this application under Exhibit II. 9. ESTIMATED BUDGET The estimated budget for HPG activities includes CDBG and/or HOME, funds of up to $50,000, and Section 504 loan/grant funds if possible. As proposed, the County is planning to leverage HPG funds with funds from the County s CDBG and/or HOME allocation grant and if possible with Section 504 loan/grant funds as well. Administration costs funded by HPG will not exceed 15% ($7,500) of the total available funds from the HPG program. Therefore, it is estimated that the total funds available for rehabilitation and administration from all funding sources including HPG are $100,000. Of that amount, no more than $7,500 in HPG funding will be used for administration costs. Additional administrative expenses incurred beyond $7,500 will be provided as part of the County s contribution for the program. Administration costs are based on an estimated average cost per project that assumes the following: costs of all grant reporting and drawdown requests, fiscal management of the grant during the grant agreement term, and County Counsel review of the HPG Agreement between RD and County. County CDBG or HOME funds will also be used to leverage HPG funds and to cover project delivery and activity costs related directly to the specific rehabilitation project such as loan officer and Rehabilitation staff time to process each HPG application and complete rehabilitation activities, 2017 Housing Preservation Grant Program Statement of Activities - 7

including travel/mileage to and from project site, and other items as required to complete each rehabilitation activity. Staff Positions: SOURCE OF FUNDS Housing Preservation Grant $50,000 CDBG and/or HOME * $50,000 *Possibly Section 504 Funds TOTAL SOURCES $100,000 EXPENSES SOURCE OF FUNDS Administration Salary & Benefits $15,000 HPG $7,500 max Construction Rehabilitation activities $85,000 HPG ($42,500) TOTAL EXPENSES $100,000 Affordable Housing Program Manager, Rehabilitation Specialist, Grant Administrator, Loan Officer, Office Assistants, and Financial Services Personnel that include Manager and Accountants. The County anticipates making draws on HPG funds on a quarterly basis. A more detailed budget is included at the end of this section. 10. INDIRECT COST PROPOSAL There will be no indirect costs attributed to the HPG Program, as proposed in this application. 11. ACCOUNTING SYSTEM The Financial Services Division of the Department of Public Works and Planning will perform the accounting management for the HPG program. This Division has established procedures for managing HPG award funds and will be responsible for tracking HPG balances and account reporting in accordance with general government accounting practices. The Division also will set up the process for layering and reconciling of CDBG or HOME funds with the HPG funds; and will prepare the various financial reports which are required by the County Auditor/Controller and for the quarterly and annual Performance Report required by Rural Development. 12. METHOD OF EVALUATION The HPG program as proposed in this pre-application will be leveraged with CDBG and/or HOME funds to increase the affordability of needed improvements for the eligible homeowner. Since 1977, the County has assisted over 1,700 very low - to low/moderate-income households with the repair and/or rehabilitation of their homes through its Housing Assistance Rehabilitation Program (HARP). The Housing Preservation Grant will allow HARP to expand its services to very low to low/moderate income households not able to qualify for a HARP loan 2017 Housing Preservation Grant Program Statement of Activities - 8

or are in need of additional eligible repairs that cannot be met with the HARP loan alone. These households will be granted HPG funds for the needed repairs. As with HARP, the effectiveness of the HPG program will be demonstrated by the long-term affordability resulting to households assisted with these funds. Monitoring and evaluation of the HPG program will mirror that of HARP. Name, address, income, and total rehabilitation cost for each HPG assisted household will be documented along with the type of assistance provided and a list of the major repairs to the house. Evaluation for effectiveness of the program will be based on the following criteria: Comparison of actual accomplishments to the objectives set forth in the pre-application (number of households assisted and the number of very low-income households assisted). The percentage of HPG funds invested to total funds invested. Meeting program work schedule as outlined in No. 11, above. Monitoring and reporting for the above criteria will be included in the County s quarterly and annual performance reports to Rural Development. 13. OTHER FUNDING The County intends to invest CDBG and/or HOME funds to compliment the HPG funds. In Addition the County will work collaboratively with USDA to apply for Section 504 loan/grant funds. The County will provide a minimum of $50,000 from these sources of funds to leverage with HPG funding. It is anticipated that when HPG funds layered with Section 504, CDBG or HOME, will make up less than 50% of the total funds invested to complete rehabilitation activities. 14. PROGRAM INCOME AND MONITORING HPG funds will be used for rehabilitation activities as stated in answers No. 1 and No. 2, above. Eligible applicants will include one (1) household earning at or below 50% AMI and two (2) households earning at or below 80% AMI. HPG funds will be a grant to the applicant. Since HPG funds will be a grant there will be no security instruments and thus program income is not anticipated. 15. DISPOSITION OF SECURITY INSTRUMENTS Not Applicable. The County of Fresno is a political subdivision of the State of California and is organized under California State Law. 16. OTHER INFORMATION Relocation is governed by the Uniform Relocation Assistance and Real Properties Acquisition Policies Act of 1970 and Section 104 of the Housing and Community Development Act of 1974 and the implementing regulations. It is the general policy of the County of Fresno to avoid displacement to the greatest extent possible as it administers its housing programs. In administering the HPG program the County will take all reasonable steps to minimize the displacement of families and individuals. Should a family need to be temporarily displaced 2017 Housing Preservation Grant Program Statement of Activities - 9

during rehabilitation of their dwelling; the County will adhere to and comply with all relocation and displacement regulations as indicated in the above paragraph. 17. OUTREACH EFFORTS Since the HPG funds will be leveraged with CDBG, and/or HOME funds, we are proposing to use the same marketing procedures as established for the County s Affordable Housing Program. Informational brochures are mailed to owner-occupant households in selected eligible communities in order to generate applications. Staff markets the County s housing programs using a variety of mediums including informational spots on local television public service programs, radio programs (Radio Bilingue), and publications in community newsletters and newspapers such as Vida En El Valle. Marketing and outreach are also accomplished through the County established relationship with the real estate community. Throughout the year, area lenders will host informational tables at local shopping malls and community centers. In the past, lenders who are familiar with the County s housing program have distributed information on the County s housing programs along with other housing programs available in the area. The County expects to continue to use the services of the area s lenders. 2017 Housing Preservation Grant Program Statement of Activities - 10

HPG PROGRAM BUDGET SOURCES OF FUNDS: Housing Preservation Grant $ 50,000 CDBG/HOME funds* $ 50,000 TOTAL SOURCES $100,000 USES OF FUNDS: Rehabilitation Activities (3 houses) HPG funds $ 42,500 CDBG/HOME funds $ 42,500 Funds Available for Rehabilitation Activities $ 85,000 Administration Costs (3 houses, see below for detail) HPG funds ($6,000 max. allowed) $ 7,500 CDBG/HOME funds $ 7,500 Estimated Administration Costs $ 15,000 TOTAL USES $100,000 * Will also Utilize Section 504 Funds Administration Costs Staff Position Hours per Project Staff Costs Affordable Housing Manager 6 hrs. $ 481 Rehabilitation Specialist II 45.5 hrs. $ 2,202 Grant Administrator 5 hrs. $ 374 Loan Officer 11 hrs. $ 766 Supv Accountant 2 hrs. $ 151 Account Clerk 2 hrs $ 71 Office Asst 3.5 hrs. $ 122 Estimated Staff Costs per HPG project $ 3,701 Mileage (@ $.53.5/mi) $ 321 Miscellaneous Expenses and/or fees (Environmental Clearance) $ 511 Estimated Other Costs per HPG project $ 780 Estimated Administration Costs Per Project: $ 5,000 Estimated Administration Costs for 3 Projects: $ 15,000 2017 Housing Preservation Grant Program Statement of Activities - 11