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HomeMy WebLinkAbout2008-07-08 - AGENDA REPORTS - HOME FUNDS APPLICATION (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: July 8, 2008 ADOPTION OF RESOLUTION TO APPLY FOR AND ACCEPT HOME FUNDS Community Development RECOMMENDED ACTION City Council adopt a resolution supporting the City's application for HOME funds in the amount of $800,000, and authorize the City Manager or designee to execute any contracts, change orders, or amendments arising out of this program, subject to City Attorney approval. BACKGROUND Since 2002, the City has operated the FirstHOME Program, which provides low-interest, deferred -payment second mortgage loans to be used as down payments on a home in the City of Santa Clarita. Past loans have been made using a combination of the proceeds from repaid earthquake rehabilitation loans and $600,000 from a 2004 HOME grant. The City currently has a portfolio of nine FirstHOME loans with a value of over $1,000,000. All available loan funds have been exhausted and new funds are needed to continue the program. The State of California Department of Housing and Community Development has released a Notice of Funding Availability (NOFA) for first-time homebuyer program funds. The City is eligible to apply for $800,000 in funding, which would allow the FirstHOME Program to provide four (4) or five (5) new deferred -payment second mortgage loans to first-time homebuyers. ALTERNATIVE ACTIONS Other actions as determined by the City Council. FISCAL IMPACT There is no impact to the General Fund. Administrative costs to implement the FirstHOME Program may be paid out of the HOME grant. ATTACHMENTS Resolution RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIP PROGRAM WHEREAS, the California Department of Housing and Community Development (the "Department") is authorized to allocate HOME Investment Partnerships Program ("HOME") funds made available from- the U.S. Department of Housing and Urban Development ("HUD"). HOME funds are to be used for the purposes set forth in Title II of the Cranston -Gonzalez National Affordable Housing Act, of 1990, in federal implementing regulations set forth in Title 24 of the Code of Federal Regulations, Part 92, and in Title 25 of the California Code of Regulations commencing with Section 8200; and WHEREAS, on June 2, 2008, the Department issued a 2008 Notice of Funding Availability announcing the availability of funds under the HOME program (the "NOFA"); and WHEREAS, in response to the 2008 NOFA, the City of Santa Clarita, a political subdivision of the State of California (the "Applicant'), wishes to apply to the Department for, and receive an allocation of, HOME funds. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. In response to the 2008 NOFA, the Applicant shall submit an application to the Department to participate in the HOME program and for an allocation of funds not to exceed Eight Hundred Thousand Dollars ($800,000) for the following activities and/or programs: the FirstHOME Program, in which the City provides low-interest, deferred -payment second mortgage loans to eligible low- and moderate -income first-time homebuyers, for homes to be located in the City of Santa Clarita. SECTION 2. If the application for funding is approved, the Applicant hereby agrees to use the HOME funds for eligible activities in the manner presented in its application as approved by the Department in accordance with the statutes and regulations cited above. The Applicant may also execute a standard agreement, any amendments thereto, and any and all other documents or instruments necessary or required by the Department or HUD for participation in the HOME program (collectively, the required documents). SECTION 3. The applicant authorizes Kenneth R. Pulskamp, City Manager, or his designee(s) to execute, in the name of the applicant, the required documents. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this day of , 2008. MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of , 2008, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 2 CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. , adopted by the City Council of the City of Santa Clarita, California on July 8, 2008, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of )20—. Sharon L. Dawson, CMC City Clerk By Susan Caputo Deputy City Clerk r 3