To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Resolution Authorizing the Signing and Submission of a CalHome Program Grant Application for Continuation of the Owner-Occupied Rehabilitation and Accessory Dwelling Unit Loan Program, and Resumption of a First Time Home Buyer Loan Program.
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Adopt the attached resolution (Attachment 1):
A. Authorizing an application to be submitted to the California Department of Housing and Community Development (HCD) for the CalHome Grant Program in the amount of $1.5 million; and
B. Authorizing and directing the Planning and Building Department Director (Attachment 2) to execute in the name of the County of Humboldt the application, the Standard Agreement, and all other documents required by HCD for application to and participation in the CalHome Program, and any amendments thereto; and
2. Direct the Clerk of the Board to return one fully executed, certified copy of the attached resolution to the Planning and Building Department for submission to HCD.
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STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Housing for All
Strategic Plan Category: 4002 - Increase and prioritize housing development
DISCUSSION:
On Dec. 12, 2024, HCD’s CalHome Program issued a Notice of Funding Availability (NOFA), as amended on Jan. 14, 2025, and Jan. 17, 2025. The purpose of the CalHome Program is to support existing homeownership for low- and very-low-income households, encourage sustainable development in the form of Accessory Dwelling Units (ADUs), and to increase home ownership opportunities for first-time home buyers. The county will request a funding allocation to continue the Owner-Occupied Rehabilitation deferred loan program ($500,000) and the Accessory Dwelling Unit deferred loan program ($500,000), and resume a First-Time Home Buyer deferred loan program ($500,000).
The county has operated Owner-Occupied Rehabilitation (OOR) and First-Time Home Buyer loan programs with funding from four sources for the last 20 years. ADUs were added to the OOR loan program in 2021. The OOR program provides deferred loans to income-qualified homeowners, of both site-built and manufactured units, to repair health and safety problems, building code items, and to improve accessibility and energy efficiency. ADU loans provide a subordinated, deferred, low-interest loan to qualifying homeowners to develop a second unit on their property. CalHome loans may be used for ADU and Junior ADU construction, reconstruction, rehabilitation or repair. The county applied successfully for funding from the CalHome OOR/ADU program in 2021. First-Time Home Buyer loans supplement out-of-pocket deposits and a primary mortgage by providing gap loans to low-income households. The gap loan acts as a silent second mortgage. The last two first-time home buyer loans, made from a different funding source, provided permanent housing for 10 people, six of whom were children.
The CalHome Program limits participation to households earning less than 80% of the Area Median Income (AMI). In 2024, an individual earning less than $49,500 per year was eligible to borrow CalHome funds; a household of four people would need to earn less than $70,650 to be eligible. Loans run from $5,000 for earthquake bracing to $250,000 for reconstruction of a dilapidated unit. Most loans are somewhere in between those numbers.
If the county applies for $1.5 million, the funds will assist up to 10 families with OOR loans, up to five families with ADU loans, and two to three first-time home buyers over the 3-year grant period. When loans are repaid into a county-managed trust fund, those funds may be loaned out again to another qualifying household. This funding source is competitive.
SOURCE OF FUNDING:
California Department of Housing and Community Development CalHome Grant.
FINANCIAL IMPACT:
This action solicits $1.5 million in grant funds from the State of California and the award will be administered out of the Planning and Building Department Advance Planning budget unit (1100-282). Indirect costs have been included in the grant, and a pre-grant questionnaire detailing costs and impacts was approved by the County Administrative Office.
OTHER AGENCY INVOLVEMENT:
California Department of Housing and Community Development will provide funding and supervise the County’s implementation of the grant.
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board could choose not to secure these funds. This is not recommended as there is demand for safe housing, additional housing units, and home ownership in Humboldt County.
ATTACHMENTS:
Attachment 1 - CalHome Resolution
Attachment 2 - Letter of Designation
PREVIOUS ACTION/REFERRAL:
Meeting of: N/A
File No.: N/A