Title
RESOLUTION NO. 2014-108 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE CALHOME PROGRAM AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE, IF SELECTED FOR SUCH FUNDING, TO EXECUTE A STANDARD AGREEMENT, ANY AMENDMENTS THERETO, AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE CALHOME PROGRAM
Body
RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
Body
SUMMARY
The California Department of Housing and Community Development (HCD) has issued a Notice of Funding Availability (NOFA) for approximately $43 million under the CalHome program. Funding can be used for homeownership assistance program activities under the CalHome program through local, public and nonprofit agencies. This action requests authorization to apply for funds through this NOFA to increase available funding for the City's Home Buyer Assistance Program.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b)(4) of the State CEQA Guidelines because the action consists of applying for available funding that will be used to assist first time home buyers and will not result in any direct or indirect physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines this activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
California HCD has issued a NOFA of approximately $43 million under the CalHome program. Funding was made available by the passage of Proposition 1C, the Housing and Emergency Shelter Trust Fund Act of 2006. Funds awarded through this NOFA will provide for homeownership assistance program activities under the CalHome program through local, public and nonprofit agencies.
As part of a commitment to provide homeownership opportunities to its residents, the City of Chula Vista (“City”) currently offers a variety of homeownership assistance programs. The City's partnership with Community HousingWorks (CHW) includes a continuum of educational services to serve homebuyers and existing homeowners.
Staff is proposing to make an application for up to $1,000,000 in CalHome funds to provide additional funding for its low-income first-time homebuyer assistance program administered by CHW on behalf of the City. The CalHome grant may be used to provide: (1) additional financing to eligible homebuyers in an amount not to exceed $70,000 in the form of a deferred payment loan; (2) pay for first-time homebuyer educational costs, or (3) pay for applicable loan processing costs. If awarded CalHome funds, the City will be able to leverage its federal HOME Investment Partnerships Program, increasing the number of first-time homebuyers assisted by the City.
All repayment of CalHome loans will be deposited into a CalHome Trust Fund to provide additional CalHome loans after the $1,000,000 Cal Home grant funds have been fully expended.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The application supports the following strategic goals:
Economic Vitality
Strategy 2.1 Provide policies, infrastructure, and services that are fundamental to an economic strong, vibrant city
Initiative 2.1.2. Foster opportunities for investment in Western Chula Vista
The submittal of a CalHome application supports the opportunity to obtain additional program funding to assist First Time Homebuyers who desire to purchase a home in Western Chula Vista.
Connected Community
Strategy 5.1: Provide Opportunities that enrich the Community’s Quality of Life
Initiative 5.2.1 Provide services/programs responsive to residents’ priorities.
The submittal of an application for CalHome funding supports the priority to increase homeownership program opportunities and is consistent with the goals identified in the City’s 2013-2018 Housing Element and 2010-2015 Consolidated Plan. The City’s homebuyer program ensures that buyers are purchasing a safe and livable home with a mortgage that they can afford.
CURRENT YEAR FISCAL IMPACT
There is no fiscal impact in the current fiscal year. If awarded the grant from the California Department of Housing and Community Development CalHome program, staff will return to Council to accept and appropriate these funds. Award announcements are not expected during this fiscal year.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact. If the grant application is successful, the Cal Home funds will be used to reimburse costs.