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HomeMy WebLinkAboutAGENDA REPORT 2013 0306 CCSA REG ITEM 10G ITEM 10.G. A013 MOORPARK CITY COUNCIL AGENDA REPORT _._..._ TO: Honorable City Council FROM: Jessica Sandifer, Management An ly DATE: February 27, 2013 (CC Meeting of 031 6 3) SUBJECT: Consider Resolution Authorizing Submittal of CalHome Grant Application for First Time Home Buyer Downpayment Assistance Program and Housing Rehabilitation Program and Authorizing City Manager to Execute All Documents Required to Participate in Program BACKGROUND The California Department of Housing and Community Development (HCD) is accepting applications for Downpayment Assistance funding and Housing Rehabilitation funding under the CalHome Program. Approximately $49,000,000 is available through funding created by Proposition 1C, the Housing and Emergency Shelter Trust Fund Act of 2006. DISCUSSION Funds are available through HCD for first time home buyer downpayment assistance funding and housing rehabilitation funding for owner-occupied homes of low and very- low income homeowners. For both programs the funds will provide deferred loans up to a maximum of 3% interest. When the CalHome loans are repaid, the principal funds and any accrued deferred interest will return to the City to be deposited into an established housing reuse account and may be reused for the same programs. The maximum loan amount per property is $60,000 and only one CalHome loan can be recorded per property. Staff recommends applying for $600,000 with $240,000 dedicated for first-time home buyer downpayment assistance and $360,000 dedicated to owner-occupied housing rehabilitation. Both programs are going to be targeted within the City's newly defined Qualified Census Tract, which is generally the area between Los Angeles Avenue to the south, the railroad tracks to the north, the Arroyo Simi to the east and the westerly city limit line. Funds awarded must be used with 36 months of award. CalHome Program regulations include an activity delivery fee which can be used toward the cost to administer the program. The activity delivery fee is included within the $60,000 loan cap, and is provided as a grant to the City. 64 Honorable City Council March 6, 2013 Page 2 FISCAL IMPACT None. STAFF RECOMMENDATION Adopt Resolution No. 2013- , authorizing an application for CalHome funds for homebuyer assistance funds and housing rehabilitation loans, and authorizing the City Manager to execute all documents required to participate in the program. Attachment 1: Resolution No. 2013- 65 ATTACHMENT 1 RESOLUTION NO. 2013 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) 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 Moorpark wishes to apply for and receive an allocation of funds through the CalHome Program; and WHEREAS, the California Department of Housing and Community Development (HCD) has issued a Notice of Funding Availability (NOFA) for the CalHome program established by Chapter 84, Statutes of 2000 (S13 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 Moorpark wishes to submit an application to obtain from HCD an allocation of CalHome Funds in the amount of six hundred thousand dollars ($600,000). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City of Moorpark 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 for the following activities located in the City of Moorpark: First Time Home Buyer Downpayment Assistance $240,000 Owner-occupied Housing Rehabilitation $360,000 SECTION 2. If the application for funding is approved, the City of Moorpark 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. 66 Resolution No. 2013 — Page 2 SECTION 3. The City of Moorpark authorizes Steven Kueny, City Manager to execute in the name of the City of Moorpark, the application, the Standard Agreement, and all other documents required by HCD for participation in the CalHome Program, and any amendments thereto. SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 6th day of March, 2013. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 67