CC - Item 3D - CalHome Program ApplicaitonROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: FEBRUARY 26, 2013
SUBJECT: CALHOME PROGRAM APPL ICATION
SUMMARY
To enable the City to apply for funding from the California Department of Housing and
Community Development (HCD) under the CalHome Program, the City Council needs
to adopt a resolution authorizing the submittal of an application.
Staff Recommendation
It is recommended that the City Council approve Resolution No. 2013 -08 authorizing the
submittal of an application to the HCD for funding under the CalHome Program and
authorize the City Manager to execute a Standard Agreement with HCD if selected to
receive CalHome Program funding and any amendments thereto as well as authorize
the City Manager to execute and file any related documents necessary to participate in
the CalHome program.
BACKGROUND /DISCUSSION
The CalHome Program is authorized by Chapter 6 (commencing with Section 50650) of
Part 2 of Division 31 of the Health and Safety Code. Proposition 1C, the Housing and
Emergency Shelter Trust Funds Act of 2006, provides funding for CalHome Programs.
California jurisdictions and non - profit organizations are eligible to apply for CalHome
Program funds to provide 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, in which HCD rates and ranks applications to
determine grant recipients.
If awarded, these funds will provide low interest (0 to 3 %) deferred payment loans to
seniors, persons with a disability, and families of low and moderate income who own
and occupy their homes and need financial assistance to make repairs and
improvements. Currently, the City owner - occupied rehabilitation program is funded with
federal HOME funds. However, due to the significant cut to the City's HOME grant last
year, the City is hoping to replace any loss funding through the award of CalHome
Program funds.
ITEM NO.
City Council Report
March 26, 2013
Page 2 of 2
This is a time - sensitive item for which the City Council must take action to submit the
CalHome Program application to HCD. In order to remain eligible to apply for CalHome
funds, the City Council must approve submittal of the application prior to the application
due date on March 20, 2013.
FISCAL IMPACT
There will be no impact to the City's General Fund. The CalHome Program does not
require any match funds. A maximum of 5% (or an estimated $25,000) of the grant
amount can be used for administrative and program delivery activities.
LEGAL REVIEW
The attached Resolution has been reviewed and approved by the City Attorney.
Prepared by:
Michelle G. Ramirez
Community Development Director
Attachment A — Resolution No. 2013 -08
RESOLUTION NO. 2013 -08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD 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 Rosemead, a 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 ")
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 Rosemead wishes to submit an application to obtain from HCD
an allocation of CalHome funds in the amount of $500,000.
NOW, THEREFORE, the City Council of the City of Rosemead does hereby resolve as
follows:
SECTION 1. The City of Rosemead shall submit to HCD an application to participate in
the CalHome Program in response to the NOFA issued on January 22, 2013 which will
request a funding allocation of $500,000 for the following program: An Owner Occupied
Rehabilitation Loan Program located in Rosemead.
SECTION 2. If the application for funding is approved, the City of Rosemead 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. It also may execute any and all other instruments necessary or required by
HCD for participation in the CalHome Program.
SECTION 3. The City of Rosemead authorizes the City Manager for a designee
authorized by the City Manager to execute in the name of the City of Rosemead, the
application, the Standard Agreement, and all other documents required by HCD for
participation in the CalHome Program, and any amendments thereto.
Resolution No.
Page 2
SECTION 4. The City Clerk shall certify to the adoption of this resolution and hereafter
the same shall be in full force and effect.
PASSED, APPROVED, and ADOPTED this 26 day of March, 2013.
Sandra Armenta, Mayor
City of Rosemead, California
ATTEST:
Gloria, Molleda, City Clerk
City of Rosemead, California:
APPROVED AS TO FORM
Rachel H. Richman, City Attorney
Burke, Williams & Sorensen, LLP