HomeMy WebLinkAboutE-11 Staff Report - Resolution Authorizing CalHome Program Grant ApplicationCalHome Program Grant Application
November 15, 2021
Page 1
CONSENT ITEM
E-11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: NICO DE ANDA-SCAIA, DEPUTY CITY MANAGER
DATE: NOVEMBER 15, 2021
SUBJECT: RESOLUTION AUTHORIZING THE SUBMISSION OF AN APPLICATION TO
THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT FOR THE CALHOME GRANT PROGRAM
BACKGROUND:
The CalHome Program is authorized by Chapter 6 (commencing with Section 50650) of Part 2
of Division 31 of the State Health and Safety Code. Additionally, Proposition 1C, the Housing
and Emergency Shelter Trust Funds Act of 2006, provides funding for CalHome mortgage
assistance for low, or very low-income first-time homebuyers and owner-occupied housing
rehabilitation for low, or very low-income homeowners (0 to 80% of Median Family Income).
The CalHome application is a competitive application process rated and ranked by HCD to
determine the grant recipients.
RECOMMENDATION:
Staff recommends that the City Council take the following action:
1)Approve the attached Resolution No. 2021-C54 authorizing the submission of an
application to HCD for funding under the CalHome Program.
ANALYSIS:
The City of Azusa wishes to submit an application for funding under the CalHome Program with
the California Department of Housing and Community Development (HCD). The CalHome
Program was established with the intent of enabling low and very low-income households to
become or remain homeowners. Through this program, HCD grant funds are awarded to local
public agencies and nonprofit developers, who then assist individual first-time homebuyers
through deferred-payment loans for down payment assistance, home rehabilitation, homebuyer
counseling, self-help mortgage assistance, technical assistance, among other services. Assistance
APPROVED
CITY COUNCIL
11/15/2021
CalHome Program Grant Application
November 15, 2021
Page 2
to individual households is in the form of deferred-payment loans payable on sale or transfer of
the property, or at maturity.
If awarded, these funds will provide low interest (0 to 3%, determined by City Council at a
future date) deferred payment loans to seniors, persons with a disability, and families of low to
moderate-income who are fist-time homebuyers in need of down payment assistance, or who
own and occupy their homes and need financial assistance to make repairs and improvements.
This program is a reimbursable program with no matching funds required to participate.
In order to submit an application for the CalHome Grant Program, a City Council Resolution
authorizing submittal to HCD is required. In addition, the City has engaged Global Urban
Strategies, Inc., a consulting firm based out of Alhambra, for grant writing services and expertise
associated with applying for the CalHome Grant Program. Global Urban Strategies, Inc.
specializes in applying for, and administering CalHome Grant Program funds, and as a partner
with the City is therefore able to maximize the City’s point-allocation and competitiveness for
said funds.
This time-sensitive item requires City Council action to allow for timely submission of the
CalHome Program application to HCD. To remain eligible to apply for CalHome funds, the City
Council must approve the application submitted before the application deadline of November 22,
2021.
If awarded CalHome grant funds, Staff will return to City Council for further direction regarding
next steps, including but not limited to the acceptance of grant funds and formal agreement
through HCD; approval of a professional services agreement for CalHome program grant
administration services (to be paid through the CalHome administrative grant allocation); and
establishment of local program guidelines and interest rates.
FISCAL IMPACT:
The cost for professional services with Global Urban Strategies, Inc. associated with grant-
writing and applying to the CalHome Grant Program is $5,000, and therefore falls under the City
Manager’s expenditure threshold for approval authority. These funds will be budgeted from the
City Manager’s Department Account #6399. If the City is awarded CalHome grant funds, Staff
will return with further fiscal impact analysis related to fund disbursement, budget allocation,
and grant administration services.
Prepared by: Reviewed and Approved:
Nico De Anda-Scaia Sergio Gonzalez
Deputy City Manager City Manager
Attachments:
1) Authorizing Resolution No. 2021-C54
RESOLUTION NO. 2021-C54
A RESOLUTION TO THE CITY COUNCIL OF THE CITY OF
AZUSA, CALIFORNIA AUTHORIZING THE SUBMITTAL OF AN
APPLICATION TO THE CALIFORNIA STATE DEPARTMENT
OF HOUSING AND COMMUNITY DEVELOPMENT FOR
FUNDING UNDER THE CALHOME PROGRAM; THE
EXECUTION OF A STANDARD AGREEMENT IF SELECTED
FOR SUCH FUNDING AND ANY AMENDMENTS THERETO;
AND ANY RELATED DOCUMENTS NECESSARY TO
PARTICIPATE IN THE CALHOME PROGRAM.
WHEREAS, the city of Azusa, a municipal corporation and political subdivision
of the State of California, wishes to apply for and receive an allocation of funds through
the CalHome Program; and
WHEREAS, the California Department of Housing and Community
Development (hereinafter referred to as “HCD”) has issued a Notice of Funding
Availability (“NOFA”) on September 21, 2021, for the CalHome program established by
Chapter 84, Statutes of 2000 (SB 1656 Alarcon), and codified in Chapter 6 (commencing
with Section 50650) of Part 2 of Division 31 of the Health and Safety Code (the
“statute”). Pursuant to the statute, HCD is authorized to approve funding allocations
utilizing monies made available by the State Legislature to the CalHome program,
subject to the terms and conditions of the statute and the CalHome Program Regulations
adopted by HCD in April 2004; and
WHEREAS, the City of Azusa wishes to submit an application to obtain from
HCD an allocation of CalHome Funds in the amount of Four Million Eight Hundred Six
Thousand ($4,806,000.00) but no more than Five Million Dollars ($5,000,000.00); and
WHEREAS, the City of Azusa, upon the award of said grant funding, wishes to
enter into a Professional Service Agreement with Global Urban Strategies, Inc. for the
Administration of the CalHome Program (including loan servicing, monitoring,
Homebuyer Education, and submittal of reimbursement requests), program eligibility and
vetting of applicants; and
WHEREAS, Global Urban Strategies, Inc. has extensive experience
administering various state and federally funded programs including the CalHome
Program and will be compensated directly from the administration fees allocated by the
program.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
Attachment 1
SECTION 1. The City of Azusa shall submit to HCD an application to participate in the
CalHome Program in response to the NOFA issued on September 21, 2021, which will
request a funding allocation for the following activities:
A. First Time Homebuyers Program in the amount of Two Million Six Hundred Forty-
Six Thousand dollars ($2,646,000.00); and
B. Owner Occupied Rehabilitation in the amount of Two Million One Hundred Sixty
Thousand dollars ($2,160,000.00).
All activities will be conducted within the boundaries of the City of Azusa, CA.
SECTION 2. If the application for funding is approved, the City of Azusa hereby agrees
to use the CalHome funds for eligible activities in the manner presented in the application
as approved by HCD and in accordance with program regulations cited above. The
application in full is incorporated as part of the Standard Agreement. Any and all
activities funded, information provided, and timelines represented in the application are
enforceable through the Standard Agreement. The City of Azusa acknowledges and
agrees that it may be required to execute any and all other instruments necessary or
required by HCD for participating in the CalHome Program.
SECTION 3. The City Council of the City of Azusa authorizes the City Manager or his
designee, to execute in the name of the City of Azusa the application, the Standard
Agreement, and any subsequent amendments or modifications thereto, as well as any
other documents required by HCD for participation in the CalHome Program, and any
amendments thereto.
SECTION 4. The City Clerk shall attest and certify to the passage and adoption of this
Resolution and enter it into the book of original resolutions, and it shall become effective
immediately upon its approval.
The City Council hereby finds that the foregoing recitals are true and correct and are
incorporated into the body of this Resolution by this reference.
PASSED, APPROVED AND ADOPTED this 15th day of November, 2021.
____________________________________
Robert Gonzales
Mayor
ATTEST:
____________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2021-C54 was duly adopted by the
City Council, at a regular meeting of said Agency held on the 15th day of November 2021, by the
following vote of the Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
___________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
APPROVED AS TO FORM:
___________________________________
Best, Best & Krieger, LLP
City Attorney