HomeMy WebLinkAbout2003-08-26 - AGENDA REPORTS - CALHOME GRANT APPLICATION (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT
Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
August 26, 2003
/3
/WAPA-ew
pp-
BarbaraBoswell
CALHOME GRANT APPLICATION FOR FIRST TIME HOME
BUYER LOANS
Administrative Services
RECOMMENDED ACTION
Adopt resolution, authorizing the submittal of an application for first-time home buyer loans, and
direct the City Manager or his designee to enter into necessary agreements as approved by the
City Attorney.
BACKGROUND
The State Department of Housing and Community Development has issued a Notice of Funding
Availability (NOFA) under the CalHome Program. The NOFA is for approximately $25 million,
which was provided by the passage of Proposition 46, the Housing and Emergency Shelter Trust
Fund Act of 2002. This NOFA is to provide funding to local public agencies for nonprofit
housing corporations for the following activities within the CalHome Program: 1) First -Time
Homebuyer Mortgage Assistance Program, 2) Owner -Occupied Rehabilitation Program, or 3 )
Homeownership Project Development Loans Project.
Staff is recommending the City Council adopt the attached resolution that will allow it to apply
for First -Time Homebuyer Mortgage Assistance grant funds in the maximum application amount
of $500,000. If the application is successful, these funds would be used to re -supply the pool of
funds the City currently uses to provide second mortgages to first-time homebuyers.
In October of 2002, the City Council modified the City's existing First -Time Homebuyer
Program, and three loans have been awarded at or near the maximum loan amount of $60,000.
Another applicant's loan is expected to fund in the first week of October for a total of four loans.
Staff believes the increase in loan activity is due to program rule changes, low interest rates, and
A Gp$Ed:—C—____>-/ ► 7
additional staff devoted to the loan program. The source of these funds are re -paid earthquake
rehabilitation loans. This source of funding is now exhausted until more loans are paid off.
ALTERNATIVE ACTIONS
Direct staff to not apply for this grant opportunity.
FISCAL IMPACT
There is no fiscal impact associated with the approval of this Resolution. If the City were to
receive a grant award for the maximum amount available, ten percent of the $500,000 grant
request ($50,000) may be used for administrative costs to implement the program. It is expected
that these funds would be sufficient to cover all costs, resulting in no fiscal impact to the City.
ATTACHMENTS
Resolution