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Report to Redevelopment Agency Board regarding Application for HELP Program Page 2 of 4 rehabilitation of their residences. The very low-income limit released for 2005 by the State of California Department of Housing and Community Development for San Bernardino County for a family of four is $27,850 per year. Statistical information revealed in the 2004 report to the Redevelopment Agency for the City of Colton by Dr. John Husing, indicates a clear need to assist very low income residents in our City: • Colton is very young with its median age of 26.8, far below that of Southern California's surrounding counties • 63.6% of its residents under 35 years old A disproportionately large share of its residents are only modestly educated • The city's 2003 median family income was estimated at $40,622, somewhat below San Bernardino County's median family income estimate of $48,360 • The city has numerous older homes because development has occurred throughout its long history • In 2000, 48.1 % of Colton's dwellings were owner occupied The latest US Census information for 1999 received for the Census Tracts in the City of Colton revealed the following: • Incomes of 31.1% of Colton households was at or below 50% of median income identified by the California Department of Housing and Community Development for San Bernardino County as Very -Low Income for 1999 • According to the HCD schedule, Very Low -Income at that time the 1999 US Census was completed was $23,600 for a family of four Analysis of housing production requirements completed while generating the Agency's Housing Program for the 2004-2009 Implementation Plan revealed an existing deficit of very low-income units. The Agency's obligations are projected to increase by an additional 14 very low-income units, requiring the Agency to produce a total of 105 units over the next ten years. Further, the City's General Plan Housing Element (updated in 2002) indicates the amount of vacant land available for new home sites is extremely limited. This information, along with the current high cost of new residential construction in today's economy led Staff to the conclusion that a program assisting very low-income homeowners to rehabilitate their existing homes with low interest loans would be the best way to augment other grant programs, rent - to -own and down -payment assistance programs already in place. Verification of Earninos and Credit Worthiness A credit report, verification of earnings and other supporting documentation will be collected from loan applicants for review, to ensure Affordable Housing Cost Guidelines are met by every successful applicant. Verification of payment history with the first lienholder, if any, will also be completed by R: 1AdministrationWeetings\2005 NUM"M S1Staff Reports In ProgressWELP ApplicatioMBELP Loan Staff Report rev.doc