The URL can be used to link to this page

Home My WebLink About2008/06/17 Item 10 CITY COUNCIL AGENDA STATEMENT ::?}\{~ CITYOF ~.;.. (HUlA VISTA June 17,2008, Item 1P ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR CALHOME PROGRAM FUNDS AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY AGREEMENTS AND RELATED DOCUMENTS SUBMITTED BY: ASSISTANT ~~~1))_R OF HOUSINGfi r CITY MANAGER REDEVELOPMENT AND REVIEWED BY: 4/5THS VOTE: YES D NO 0 BACKGROUND The City of Chula Vista wishes to authorize Community HousingWorks to apply for funds from the State of California on its behalf, to increase available funding for the City's Down Payment and Closing Costs Assistance Program. The California Department of Housing and Community Development issued a Notice of Funding Availability (NOF A) under the CalHome Program on April 18, 2008. The NOF A has been issued for approximately $60 million, which was provided by the passage of Proposition 1 C- Housing and Emergency Shelter Trust Fund Act of2006. ENVIRONMENT AL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pLlfsuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. 10-1 June 17,2008, Item ~ Page 2 of 3 RECOMMEND A nON Adopt the resolution. BOARDS/COMMISSION RECOMMENDA nON The Housing Advisory Commission (HAC) recommended funding for this program on June 9, 2008 (5-0 Vote). DISCUSSION As part of a commitment to provide homeownership opportunities to its residents, the City offers a variety of homeovmership assistance programs. The City's partnership with Community HousingWorks (CHW) includes a continuum of educational services to serve homebuyers and existing homeowners. Tonight's action will authorize the City to submit an application to the State of California for CalHome funds to leverage the HOME Investment Partnerships Program (HOME) funds used in the' City's Down Payment and Closing Costs Assistance Program (DCCA). The California Department of Housing and Community Development has issued a NOF A of approximately $60 million, which is provided by the passage of Proposition 1 C, the Housing and Emergency Shelter Trust Fund Act of2006. Funding Awarded through this NOF A will provide for homeovmershi p assistance program activities under the CalHome program through local and public and nonprofit agencies. If approved, up to $900,000 in State grant funds ,,,,ill be used by the City to provide additional funding to low-income first-time homebuyers for downpayment assistance in the form of deferred payment loans. This strategy will allow the City to: I) leverage the federal HOME Investment Partnerships Program funds; 2) maximize the number of first- time homebuyers assisted by the City using combined federal/State grant funding; and 3) infuse additional funding into the City's existing first-time homebuyer programs. If the CalHome grant is approved the funds will be utilized to provide additional financing of up to $40,000 for a total financing assistance of $80,000, pay for first-time homebuyer educational costs, and pay for loan processing costs. It is anticipated that the CalHome grant used in conjuction with the Federal HOME program funds will provide sufficient financing to assist approximately 20 low-income households to become homeowners. All repayment of CalHome loans will be deposited into the CalHome Trust Fund to provide additional CalHome loans after the $900,000 Cal Home has been fully expended. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(1 ) is not applicable to this decision. 10-2 June 17, 2008, Item~ Page 3 of 3 FISCAL IMPACT Funds for the CalHome program are not budgeted in the Fiscal Year 2008-2009 budget. The funding source will be California Department of Housing and Community Development CalHome program. If approved, this request may result in up to $900,000 in reimbursable costs, and will result in no additional staff costs. Prepared by: Jose Dorado, Project Coordinator II, Redevelopment & Housing Department 10-3 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR CALHOME PROGRAM FUNDS AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY AGREEMENTS AND RELATED DOCUMENTS WHEREAS, pursuant to Health and Safety Code section 50650, et seq (the "Statute"), the California Legislature created the CalHome Program to support existing homeownership programs aimed at lower and very low-income households and operated by private nonprofit and local government agencies; and WHEREAS, the California Department of Housing and Community Development CHCD") has issued a Notice of Funding Availability for the CalHome Program; and WHEREAS, pursuant to the Statute, HCD is authorized to approve funding allocations utilizing monies made available by the California Legislature to the CalHome Program, subject to the terms and conditions of the Statute and the CalHome Program regulations adopted by HCD on August 15,2003 and revised in April 2004; and WHEREAS, staff seeks the CaIHome Program funds in order to leverage the HOME Investment Partnership Program funds used in the City's First Time Homebuyer Down Payment and Closing Costs Assistance Program; and WHEREAS, the City and Community HousingWorks entered into to an agreement, dated August 23, 2007, for management of the City's First Time Homebuyer Down Payment and Closing Cost Assistance Program; and WHEREAS, Community HousingWorks will apply for the CaIHome Program funds on the City's behalf; and WHEREAS, if approved, up to $900,000 in CalHome Program funds will be used by the City to provide additional funding to low-income first-time homebuyers for downpayment assistant in the form of deferred payment loans. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: 1. That it authorizes the submittal of an application to the California Department of Housing and Community Development for CalHome Program funds. 10-4 Resolution No.7 Page 2 2. That it authorizes the City Manager to execute all necessary agreements and related documents. Presented by Approved as to form by \,r:!t~/,,- !l L~ ~ Bart C. Miesfeld t Interim City Attorney David R. Garcia City Manager 10-5