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221 <br />5 percent of the existing housing. Mr. Rush said he is really not familiar with <br />the legal aspects and could not advise the City in that matter, as to whether or <br />not the County could in fact bring suit against the City, if Colton had not met <br />the 5 percent quota as listed in the Cooperation Agreement. <br />City Attorney Edwards asked if. the City of Colton is compelled to go forward with <br />a project of this kind. <br />Mr. Rush answered yes, due to the fact that the City of Colton is participating in <br />the Community Development Block Grant Program, they are required to address the <br />housing needs of the low and moderate income households in the community as a part <br />of receiving those Block Grant -funds, and also to implement the Housing Assistance <br />Plan, which outlines goals and projected units to be located in the City for speci- <br />fic assistance to low and moderate income households; therefore, this Cooperation <br />Agreement is one tool that the=City of Colton can use in an effort to implement the <br />Housing Assistance Plan as required by Block Grant regulations. <br />City Attorney Edwards stated, then in other words, what Mr. Rush is saying at this <br />point is that this Council has no choice but to go forward with this program and it <br />would be a breach of some duty on the part of the Council if it stopped right now. <br />(� Mr. Rush pointed out that the City Council has signed the agreement regarding the <br />(Yj Block Grant Program, and they have the prerogative of rejecting the Cooperative <br />Agreement itself, that is not the only means by which the Council may achieve the <br />�Q Housing Assistance Goals indicated in the Housing Assistance Plan, however, the <br />Department: of Housing and Urban Development, which administers the Block Grant Program, <br />Q has indicated that lack of performance on meeting the goals indicated in the Housing <br />Q Assistance Plan may be grounds for conditioning or removing the Block Grant funding, <br />which has occurred in several cities because they have not implemented the Housing <br />Assistance Plan. <br />Mr. Rush again stated that the -Cooperation Agreement is one of the tools the City <br />may use, however, it is not the only one available for meeting the housing needs; <br />however, in rejection of this, HUD may determine that the Council is not addressing <br />the goals in the Housing Assistance Plan with available units. <br />Mr. Rush advised the only advertised assisted units available at this time are the <br />319 public: housing units made available through HUD, there are no other Section 8 <br />new construction units to be issued at this time; therefore, the only available <br />units are the 319 publicly owned housing units. <br />Councilman Rehrer stated it was his understanding that the Housing Assistance Plan <br />was for the rehabilitation of existing housing and not for new construction. <br />Mr. Rush stated the goals of the Housing Assistance Plan are for rehabilitation of <br />existing units, as well as for new construction, it is not specifically limited to <br />rehabilitation only. <br />Mr. Rush then discussed the goals of the Housing Assistance Plan, with regard to <br />rehabilitation of existing structures as well as new construction, to meet the <br />housing needs in the County. Mr. Rush explained that these housing needs are de- <br />termined and identified by SCAG. <br />City Manager Calabrese stated he is not familiar with reports and statistics as <br />identified by SCAG, however, this information should be made available to the <br />City Council so that they are in a better position to make a decision on this <br />matter. Mr. Calabrese said the City of Colton is heavily involved in the Housing <br />Rehabilitation Program, and perhaps doing more than any other City with regard <br />to housing rehabilitation. Mr. Calabrese advised part of the Block Grant was that <br />the City of Colton would designate at least a minimum of 30 percent of the Grant <br />towards rehabilitation of housing, and from all indications, Colton will exceed <br />even that amount. <br />Mr. Calabrese concluded based on this, he felt the City Council should have the <br />information from SCAG before them, before making any decision on this matter, and <br />would therefore recommend continuation,of this hearing. <br />Discussion was then held between Mr. Calabrese and Mr. Rush with regard to the <br />language as stated in the Article 34 Referendum Authority and the Ballot Measure, <br />and the requirement of State Bonded Funds with regard to housing needs. <br />Councilman Temby asked who determines these housing needs in the communities. <br />MAR 2 01979 <br />