To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Approve Adding $1.5 Million of Program Income to the $1 Million HOME Investment Partnership Award Made to the County on Dec. 3, 2025 to be Used for First-Time Home Buyers and Tenant Rental Assistance
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Adopt the resolution (Attachment 1) to take the following actions:
a. Approve an application to add program income on hand to the award contract; and
b. Authorize and direct the Planning & Building Department Director or their designee to execute in the name of the County of Humboldt the application, Standard Agreement, and all other documents required for participation in HOME programs, and any amendments thereto; and
2. Direct the Clerk of the Board to return one fully executed and certified copy of the Resolution to the Planning & Building Department.
Body
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:
This request would satisfy a grant requirement by taking existing program income held by the county and adding it to a recently allocated grant. The Planning and Building Department applied for and was awarded $1 million by the HOME Investment Partnership (HOME) program to conduct a First-Time Home Buyers program and a Tenant-Based Rental Assistance program. The award letter dated Dec. 3, 2025, is Attachment 2. However, HOME requires award recipients to spend any program income on hand prior to requesting a drawdown of new grant funds. There is approximately $1.5 in program income.
By adopting the attached resolution, the program income will be allocated for expenditure as part of this program. The resulting $2.5 million budget will be split over Fiscal Years 2026-27 and 2027-28 fiscal years.
The department discussed other alternatives for the program income, but it must be spent on a program and is not eligible for other uses. This approach will provide substantial resources to allow first time homebuyers to purchase their first home.
SOURCE OF FUNDING:
California Department of Housing & Community Development HOME Investment Partnership grant derived from Federal funds and disbursed on a reimbursement basis.
FINANCIAL IMPACT:
|
Expenditures (3960553-201) |
FY25-26 |
FY26-27 Projected* |
FY27-28 Projected* |
|
Budgeted Expenses |
- |
1,250,000 |
1,250,000 |
|
Additional Appropriation Requested |
- |
0 |
0 |
|
Total Expenditures |
- |
1,250,000 |
1,250,000 |
*Projected amounts are estimates and are subject to change.
|
Funding Sources (3960553-201) |
FY25-26 |
FY26-27 Projected* |
FY27-28 Projected* |
|
General Fund |
- |
|
|
|
State/Federal Funds |
- |
500,000 |
500,000 |
|
Fees/Other |
- |
|
|
|
Use of Fund Balance |
- |
750,000 |
750,000 |
|
Contingencies |
- |
|
|
|
Total Funding Sources |
|
1,250,000 |
1,250,000 |
*Projected amounts are estimates and are subject to change.
Narrative Explanation of Financial Impact:
This action adds $1.5 million of program income on hand to the previously approved award of $1.0 million. Activities related to the grant will be budgeted in the Special Revenue Fund (3950554-301 and 3950554-302). Expenditures have not been included in the Fiscal Year 2025-26 budget, but are included in the proposed FY 2026-27 and planned for the FY 2027-28 budget.
10% of funds may be used for salaries and benefits. Up to $250,000, over a 36-month period, may be used by the department to offset the costs associated with administration of the grant. No new staff will be hired. The department budget will include expenses for any portion of the staff salaries not covered by the grant funds. The source will be the General Plan User Fees collected on development permits and the General Fund. The staff expenses supported by the General Plan User Fee and the General Fund will not be more than 33% of total staff costs.
This grant is applicable to the Board’s grant policy, and a pre-grant questionnaire was reviewed by the County Administrative Office.
OTHER AGENCY INVOLVEMENT:
None
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may elect not to approve the resolution. The department does not recommend this action as it will prevent the department from utilizing $2.5M for housing.
ATTACHMENTS:
Attachment 1 - Draft Resolution
Attachment 2 - Award letter
PREVIOUS ACTION/REFERRAL:
Meeting of: 4/8/25
File No.: 25-424