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Planning and Building Department, Economic Development and Administration Division, Affordable Housing Unit, recommending the Board consider the following:
1) In accordance with Board Policy A-6, accept a HOME Investment Partnerships Program grant award from the Department of Housing and Community Development, in the amount of $500,000, for the County’s ongoing First-Time Homebuyer Loan Program;
2) Delegate authority to the Director of the Planning and Building Department to execute the Standard Agreement and subsequent amendments thereto that do not affect the dollar amount or term and to sign other grant-related documents, contingent upon approval by County Counsel and Risk Management; and
3) Approve and authorize the Chair to sign a budget transfer amending the Fiscal Year 2024-25 Adopted Budget increasing revenue and appropriations by $500,000 in the Affordable Housing Unit Budget. (4/5 vote required)
FUNDING: Federal Home Investment Partnerships Program Grant Funds - 100%.
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DISCUSSION / BACKGROUND
On January 19, 2024, the California Department of Housing and Community Development (HCD) released a Notice of Funding Availability (NOFA) for approximately $120 million in Federal funds for the HOME Investment Partnerships Program (HOME). HOME funding provides loans or grants to eligible HOME applicants, such as the County, serving low- (at or below eighty [80] percent of Area Median Income [AMI]) and very-low income (at or below fifty [50] percent of AMI) households. HOME funds may be used for eligible activities including, but not limited to First-Time Homebuyer (FTHB) Programs, Owner-Occupied Rehabilitation (OOR) Programs, and Tenant-Based Rental Assistance (TBRA) Programs.
Following release of the NOFA, the County submitted an application for an allocation of up to $1,500,000 in HOME funds to support the County’s FTHB and OOR Programs. Of the $1,500,000 requested, the County was awarded $500,000, with $487,500 for use toward eligible activities and $12,500 to cover administrative costs.
The County’s FTHB Program provides eligible first-time homebuyers with mortgage assistance through deferred second-priority loans to purchase a home within unincorporated areas of El Dorado County. The County’s OOR Program offers eligible households within unincorporated areas of El Dorado County deferred loans for repairs and improvements necessary for correction of any health and safety deficiencies.
Acceptance of the awarded HOME grant funds for use with the County’s FTHB and OOR Programs directly supports the County’s Housing Element Policy HO-1.22, which states that the County shall continue to support a FTHB Program; and Housing Element Policy HO-2.2 which states that the County shall continue to apply for the Community Development Block Grant (CDBG), HOME Program, and other similar State and Federal grant funding for the purpose of rehabilitating low-cost, owner-occupied, and rental housing. The HOME grant award also supports the County’s Housing Element Measure HO-18, which states that the County should make rehabilitation loans to qualifying extremely low-, very low-, and low-income households.
ALTERNATIVES
The Board may decline to accept the HOME grant funds to support the County’s FTHB and OOR Programs and identify other funding to meet the General Plan Housing Element Policy goals.
PRIOR BOARD ACTION
On April 2, 2024 (Legistar file 24-0493), the Board approved Resolution 049-2024 for the submittal of a 2024 HOME application to HCD to provide up to $1,500,000 as funding for the FTHB and OOR Programs.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
No change to Net County Cost is associated with this item. The grant award of $500,000 will be a pass-through amount from the County to eligible applicants, with reimbursement provided by HCD. $12,500 of the $500,000 HOME grant award has been allocated for staff time associated with administering the program. There is no County General Fund match required. Repayment by eligible applicants to County of FTHB and OOR loans will become County program income and available for use for additional eligible activities.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Clerk of the Board will obtain the Chair’s signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Safe and Healthy Communities
Priority: Develop a continuum of support and housing opportunities for unhoused individuals
Action Item: Develop a comprehensive plan for affordable housing opportunities
CONTACT
Jennifer Morris, Sr. Administrative Analyst
Planning and Building Department