TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
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CalHOME Program Grant Funding.
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RECOMMENDATION
1) Accept and approve the use of grant funds awarded by the California Department of Housing and Community Development (HCD); 2) establish a grant number G6241 and appropriate $600,000 to the CalHome Fund 375 with a corresponding increase in revenue; 3) approve the updated Home Improvement Program Guidelines; and 4) authorize City Manager to execute all necessary documents.
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FISCAL IMPACT
Requires an appropriation of expenditures and revenue of $600,000 to the CalHome Fund 375. The appropriation is fully offset by grant revenue and there are no matching city funds required.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above will further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Financial Stability
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Revenue: 3756220-59500-G6241 |
Expenditure: 3756220-40010-G6241 |
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BACKGROUND
The California Department of Housing and Community Development (HCD) provides loans and grants to local public entities and nonprofits for the following programs: homeownership development; self-help technical assistance; mortgage assistance; owner-occupied rehabilitation programs; shared housing; and for the acquisition of manufactured housing for agricultural households.
On January 6, 2023 HCD announced the release of 170 million dollars through a Super NOFA to distribute funds to HCD administered programs including CalHome. Applications for funding were accepted through February 28, 2023, followed by a competitive evaluation process whereas applicants were rated and ranked in a manner consistent with CalHome program requirements.
On February 21, 2023, the City Council approved the submittal of an application for funding through Resolution No. 2023-010. Shortly thereafter, staff submitted an application to HCD for funding in the amount of $600,000.
The City has successfully administered over 1 million dollars in funding in the past including reuse funds collected through loan repayments. As these funds are depleted, new funding becomes essential to maintaining a positive city image through home improvement.
ISSUES/ANALYSIS
On November 2, 2023, the City received a conditional CalHome Program award notice in the amount of $600,000. The award will be finalized upon execution of the agreement with a grant term of three years. As mentioned, the City previously received and administered over 1 million dollars in CalHome funding providing assistance to 41 homeowners. This new funding will be used to assist income-eligible homeowners with forgivable home improvement loans to rehabilitate manufactured homes.
In response to the new funding, the City’s Home Improvement Program Policy was updated to allow flexibility and discretion in loan amounts necessary to accommodate the continued escalating cost of labor and materials.
Upon acceptance of the grant funds and the approval of the revised Home Improvement Program Guidelines, staff looks forward to administering the funds as an extension to current housing programs.
Attachments: Resolution 2023-010
Conditional Award Letter
Chino Home Improvement Program Policy Updates 2023