HomeMy WebLinkAbout2010-08-24 - AGENDA REPORTS - RESO 2010 HOME INVESTMENT FUND (2)Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Erin Lay
DATE: August 24, 2010
SUBJECT: RESOLUTION TO SUBMIT APPLICATION FOR 2010 HOME
INVESTMENT PARTNERSHIP ACT FUNDS
DEPARTMENT: Community Development
RECOMMENDED ACTION
City Council adopt a resolution supporting the City's application to the State of California
Department of Housing and Community Development (HCD) for HOME funds in the amount of
$800,000, authorize the acceptance of those funds, and authorize the City Manager or designee to
execute any contracts, change orders, or amendments arising out of this contract subject to City
Attorney approval.
BACKGROUND
Since 2002, the City has operated the FirstHOME Program.. This Program provides low-interest,
deferred -payment second mortgage loans to be used as a down payment on a home in the City of
Santa Clarita. Homes purchased through the Program can be single family or condominiums.
Eligible borrowers are low- or moderate income and cannot have owned a home in the previous 3
years. Eligible borrowers are required to obtain their own first mortgage with payments that
equal between 30% and 35% of the gross household income. The Program loan amount is
determined by the gap between what the borrower can obtain in their first mortgage and the price
of the home, subject to certain limitations. The Program loan is secured by a standard Promissory
Note and Deed of Trust. Payments on the Program loan are deferred until the home is sold, the
title changes, the borrower ceases to reside in the property as their primary residence, or at 30
years, whichever comes first.'
Previous loans have been provided to first-time homebuyers using a combination of the proceeds
from repaid loans, $600,000 from a 2004 HOME grant, and $800,000 in a 2008 HOME grant.
When FirstHOME loans are repaid, the funds are used to issue new loans (subject to certain
Adl.
contractual limitations). The City currently has a portfolio of 12 FirstHOME loans with a value of
over $1.5 million dollars.
On June 1, 2010 HCD has released a Notice of Funding Availability (NOFA) for HOME funds to
be used ,in first-time homebuyer programs. 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 are paid out of the HOME grant.
ATTACHMENTS
Resolution
RESOLUTION 10-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA,
HEREBY AUTHORIZES: Submittal of an application to the California State
Department of Housing and Community Development for funding under the HOME
Investment Partnerships Program; and if selected, the execution of a standard agreement,
any amendments thereto, and of any related documents necessary to participate in the
HOME Investment Partnerships Program.
WHEREAS,
A. 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.
B. On June 1, 2010 the Department issued a 2010 Notice of Funding Availability
announcing the availability of funds under the HOME program (the
"NOFA").
C. In response to the 2010 NOFA, the City of Santa Clarita, a municipality (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 2010 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 800,000 Dollars ($800,000) for the following
activities and/or programs: FirstHOME, a first-time homebuyer program,
providing low-interest, deferred payment second mortgage loans to eligible low -
and moderate -income households for properties located in the City of Santa
Clarita.
SECTION 2. If the application for funding is approved, then 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 the City Manager or his/her designee(s)
to execute, in the name of the applicant, the required documents.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 24`h day of August 2010.
MAYOR
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA
I, Sarah P. Gorman, 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 24th day of August 2010, by the
following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK,
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL RESOLUTION
I, Sarah P. Gorman, City Clerk of the City of Santa Clarita, do hereby certify that this is a
true and correct copy of the original Resolution 10- adopted by the City Council of
the City of Santa Clarita, California on August 24,'2010, which is now on file in my
office.
Witness my hand and seal of the City of Santa Clarita, California, this 24th day of
August 2010.
City Clerk
By
Deputy City Clerk
MA