To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Consent
SUBJECT:
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A Revision to a Resolution Authorizing the Submittal and Signature of a CalHome Program Grant Application for an Owner-Occupied Loan Program and an Accessory Dwelling Unit Construction Loan Program.
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Adopt the attached Resolution No. 22-___:
a. Authorizing an application to be submitted to the Department of Housing and Community Development (HCD) for the 2021 CalHome Grant Program for $2,660,000; and
b. Authorizing and directing the Planning and Building Department Director to execute in the name of the County of Humboldt the application, the Standard Agreement, and all other documents required by HCD for participation in the CalHome Program, and any amendments.
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SOURCE OF FUNDING:
California State Department of Housing and Community Development CalHome Grant; funded by the Affordable Housing Bond Act Trust Fund of 2018. All costs associated with the activities will be provided by the grant. (1100282301-9101)
DISCUSSION:
On Dec. 3, 2021, acting under authorization from your Board, The Planning and Building Department applied to the California Department of Housing and Community Development (HCD) for CalHome Program grant funds. The application included a request to fund two loan programs:
1. Owner-Occupied Rehabilitation (OOR) Loan Program, and
2. Accessory Dwelling Unit (ADU) Loan Program
Planning and Building received a letter of tentative award from HCD for the application submitted in December. HCD requested some revisions to the resolution submitted with the application. The requested changes came before your Board on July 12, 2022. HCD’s legal department conducted further review of the revised resolution and has requested additional changes.
Staff is recommending that your Board approve these minor revisions to the resolution so that the county can secure $2,660,000 to implement the OOR and ADU loan programs.
The county has operated an OOR program with funding from three sources for the last 16 years. The OOR program provides loan funds to income-qualified homeowners to make needed repairs on their homes. Borrowers may make health and safety improvements. Energy efficiency improvements are also an eligible expense. The proposed ADU program loans will provide a subordinated, deferred, low-interest loan to qualifying homeowners to develop a second unit on their property. CalHome loans may also be used for ADU/JADU rehabilitation, reconstruction, or repair. The County applied unsuccessfully for funding from the CalHome ADU program in 2020.
Currently the CalHome Program limits participation to individuals and households that earn less than 80% of the area’s median income. In 2022, an individual earning less than $43,650 per year is eligible to borrow CalHome funds; a household of four people would need to earn less than $62,300 to be eligible. In most cases, the maximum funding amount per loan is $100,000.
FINANCIAL IMPACT:
This action solicits grant funds in the amount of $2,660,000 from the State of California Department of Housing and Community Development (HCD), this funding will be used to stabilize neighborhoods and increase rental housing for lower-income citizens of Humboldt County. It will not affect the General Fund because all costs associated with the activities will be provided by the grant. Expense appropriations related to this grant were included in the Advanced Planning budget (1100-282) for Fiscal Year 2022-23.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by seeking outside funding sources to benefit Humboldt County needs protecting vulnerable populations and creating opportunities for improved safety and health.
OTHER AGENCY INVOLVEMENT:
The California Department of Housing and Community Develop will provide the funding and oversee implementation of the grant.
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board could choose not to secure these funds through this resolution revision. This is not recommended because there is a demand for additional housing in Humboldt County.
ATTACHMENTS:
1. Board of Supervisors Resolution No. 22-____
2. CalHome Grant Award letter from HCD
PREVIOUS ACTION/REFERRAL:
Board Order No.: 21-123
Meeting of: 11/16/2021
File No.: 21-1606