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HomeMy WebLinkAbout2010/06/15 Item 7 3'riI L~~, ITEM TITLE: SUBMITTED BY: REVIEWED BY: BACKGROUND CITY COUNCIL AGENDA STATEMENT ~\f? CITY OF ~ "" (HULA VISTA June 15,2010, Item 2 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING TI-IE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR CAL-HOME PROGRAM FUNDS AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO APPLY FOR THE CAL HOME FUNDS ~ DEPUTY CITY MANAG~DEVELOPMENT SERVICES DIRECTOR ~ CITY MANAGERf 4/5THS VOTE: YES D NO I X I The City of Chub Vista wishes to authorize City staff to apply for funds from the State of California on its behalf, to increase available funding for the City's Home Buyer Assistance Program. The California Department of Housing and Community Development issued a Notice of Funding Availability (NO FA) under the CalHome Program on April 19,2010. The NOFA has been issued for approximately $50 million, which was provided by the passage of Proposition IC-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 detern1ined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. 7-1 June 15,2010, Iteml Page 2 01'3 RECOMMENDA nON Adopt the resolution. BOARDS/COMMISSION RECOMMENDA nON The Housing Advisory Commission was provided an Information Memo on this action, due to the short application period. DISCUSSION As part of a commitment to provide homeownership opportunities to its residents, the City otTers a variety of homeowners hip assistance programs. The City's partnership with Community HousingWorks (CHW) includes a continuum of educational services to serve homebuyers and existing homeowners. The proposed action would authorize the City to submit an application to the State of California for CalHome funds to leverage the HOME Investment Partnerships Program (HOME) funds and Neighborhood Stabilization Program (NSP) funds used in the City's Homebuyer Assistance Program. The California Department of Housing and Community Development has issued a NOF A of approximately $50 million, which is provided by the passage of Proposition 1C, the Housing and Emergency Shelter Trust Fund Act 01'2006. Funding Awarded through this NO FA will provide for homeownership assistance program activities under the CalHome program through local and public and nonprofit agencies. If approved, up to $1,000,000 in State grant funds will 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: 1) leverage the federal HOME Investment Partnerships Program and NSP 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 tirst-time home buyer educational costs, and pay for loan processing costs. It is anticipated that the CalHome grant used in conjuction with the Federal HOME and NSP 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 $1,000,000 Cal Home grant funds have 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 18704.2(a)(1) is not applicable to this decision. 7-2 June 15,2010, ItemL Page 301'3 CURRENT YEAR FISCAL IMPACT Funds for the CalHome program are not budgeted in the Fiscal Year 2010-2011 budget. The funding source will be California Department of Housing and Community Development CalHome program. If approved, this request may result in up to $1,000,000 in reimbursable costs, and will result in no additional stat)' costs. ONGOING FISCAL IMPACT There is no ongoing fiscal impact. If the grant application is successful, the Cal Home funds will be used to reimburse costs. Prepared bv: Jose Dorado, Project Coordinator II, Redevelopment & Housing Department 7-3 RESOLUTION NO. 2010- 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 CAL- HOME PROGRAM FUNDS AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO APPLY FOR THE CAL-HOME FUNDS WHEREAS, pursuant to Health and Safety Code section 50650, et seq (the "Statute"), the California Legislature created the CalHorne 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 ("HCD") 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 CalHome Program funds in order to leverage the HOME Investment Partnership Program funds and Neighborhood Stabilization funds used in the City's Homebuyer 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, City will apply for the CalHome Program funds; and WHEREAS, if approved, up to $1,000,000 in CalHome Program funds will be used by the City to provide additional funding to low-income first-time home buyers for homebuyer assistance in the form of deferred payment loans. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula 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. 2. That it authorizes the City Manager to execute all necessary agreements and related documents. 7-4 Presented by James D. Sandoval City Manager Approved as to form by ~rY1 /1- art C. Mlesfeld City Attorney 7-5