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Planning and Building Department recommending the Board adopt and authorize the Chair to sign Resolution 064-2026 approving the following:
1) Authorizing the Caldor Fire Grizzly Flats Homeowner Rebuild Program and the use of $550,150.75 in the Affordable Housing Special Revenue Fund to support the program;
2) Authorizing the Director of Planning and Building Department to execute a Memorandum of Understanding between County and HomeAid Sacramento, a local affiliate of HomeAid America, for administration of the program and program funds as discussed in the Resolution, as well as any future amendments that do not increase the total funding amount, contingent upon approval by the County Administrative Office, County Counsel, and Risk Management, as applicable;
3) Finding the Caldor Fire Grizzly Flats Homeowner Rebuild Program exempt from the California Environmental Quality Act; and
4) Directing the Auditor-Controller to initiate and process payment to HomeAid Sacramento upon receipt of written approval from the Director of the Planning and Building Department
FUNDING: Affordable Housing Special Revenue Fund - 100%.
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DISCUSSION / BACKGROUND
The County has implemented several programs to assist with rebuild efforts in the Caldor Fire areas, including Grizzly Flats. However, some residents continue to encounter difficulties in rebuilding permanent housing. With the upcoming expiration of the Caldor Fire Resiliency and Rebuilding Ordinance 5150 and the need to find safe, affordable housing for fire victims, staff is proposing a funding program to build permanent, affordable housing for qualified individuals and families.
The Caldor Fire Grizzly Flats Homeowner Rebuild Program (HRP) has three key components:
1. A public-nonprofit-private partnership between El Dorado County, HomeAid Sacramento and Caldor Fire victims who meet program requirements.
2. Funding through the County’s Affordable Housing Special Revenue Fund
3. Creation of a forgivable loan program for participants when occupancy requirements are met.
HomeAid Sacramento Nonprofit Partnership
The HRP leverages a unique public-nonprofit-private partnership opportunity between El Dorado County, HomeAid Sacramento (a local affiliate of HomeAid America), and qualifying Grizzly Flats residents. HomeAid Sacramento has committed to donating labor, materials, and professional services equal to at least 50 percent of each project’s estimated construction cost. HomeAid Sacramento is also conducting fundraising efforts with proceeds that will be applied towards the program participant’s share. Where participants can contribute, through insurance proceeds or other funds, they will be asked to use those funds towards their home. County funds provided through the HRP will be used only after all donated resources have been fully utilized, ensuring that public dollars complement-but do not replace-private and nonprofit contributions.
Program Funding
This program is anticipated to provide permanent housing for twelve (12) individuals or families, with opportunities to fund additional homes. The proposed fund balance below is approximate due to the continued contributions to the funds from building permit activity.
Affordable Housing Special Revenue Fund
Current Balance (approximate): $600,150.75
Proposed Amount to HRP: $550,150.75
Remaining Balance: $0 (funds continue to accrue)
The Affordable Housing Special Revenue Fund does not have specific restrictions or requirements. Though intended for affordable housing purposes, the specific use of the fund is at the Board's discretion.
To support the effective administration of the HRP, the Director of the Planning and Building Department will execute a Memorandum of Understanding (MOU) with HomeAid Sacramento. This MOU will outline the roles and responsibilities of both parties, the procedures for the distribution and accounting of program funds, and reporting requirements. The MOU will also outline the process for returning unused funds to the County in accordance with program guidelines. HomeAid Sacramento will administer program funds on behalf of the County solely for the purposes authorized under the HRP and will not retain program funds except as expressly permitted under the executed agreement.
Forgivable Loan Program
The HRP will provide up to $73,318 in forgivable financial assistance to qualifying participants. HRP assistance is provided as a forgivable loan, not a traditional loan. Eligibility is not credit based. Repayment is not required if the homeowner meets all program obligations. Details of the HRP are included in the Staff Memo (Attachment C), Exhibit A of the Resolution (Attachment B) and the Program Application (Attachment D).
The program has been designed to be complementary and consistent with the "Caldor Fire Resiliency and Rebuilding” Ordinance (#5150) adopted by the Board on September 10, 2021 (Legistar file 21-1469) and subsequent modifications as well as definitions and requirements of the “Regulations for Limited-Density Owner-Built Rural Dwellings” Ordinance (#5199) adopted by the Board on May 21, 2024 (Legistar file 24-0194).
Staff believes that all participants will meet the low-income criteria as it relates to affordable housing. Planning and Building staff are consulting with the California Department of Housing and Community Development (HCD) to determine if the units can be counted towards the County’s Regional Housing Needs Assessment (RHNA) obligations.
ALTERNATIVES
The Board of Supervisors may:
1) Choose not to approve and adopt Resolution xxx-2026. This would prevent the County from leveraging donated resources dedicated to assisting affected Grizzly Flats residents whose primary residences were damaged or destroyed in the 2021 Caldor Fire. As a result, affected Grizzly Flats residents would face continued barriers to rebuilding, prolonging displacement and slowing community recovery; or
2) Request modifications to the HRP design, funding amounts, or implementation approach. This would require staff to return at a future meeting with revised materials based on Board direction. This alternative has the potential to delay commencement of construction planned to start in May 2026.
PRIOR BOARD ACTION
On September 10, 2021 (Legistar file 21-1469), the Board adopted Urgency Ordinance 5150 to address temporary emergency housing, resiliency, and rebuilding after the 2021 Caldor Fire.
On May 21, 2024 (Legistar file 24-0194), the Board approved the Final Passage (Second Reading) of Ordinance 5199, adding regulations for limited-density owner-built rural dwellings.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended; however the Board may want to consider adding income eligibility requirements, to align with the intent of the Affordable Housing Trust Fund.
FINANCIAL IMPACT
There is no impact to the County’s General Fund. The County would utilize $550,150.75 in Affordable Housing Special Revenue Funds . These funds were created based on the terms of Development Agreements requiring fees paid at the issuance of each residential building permit.
CLERK OF THE BOARD FOLLOW UP ACTIONS
The Clerk of the Board will obtain the Chair’s signature on Resolution xxx-2026.
STRATEGIC PLAN COMPONENT
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
Karen L. Garner, Director
Planning and Building Department