ADMINISTRATIVE REPORT
MEETING DATE: January 22, 2025 AGENDA CATEGORY: Consent - Resolutions TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: January 10, 2025
SUBJECT: Resolution authorizing the submittal of an application to the California State Department of Housing
and Community Development under the CalHome Program in the amount of $2,909,000 in partnership with Self-Help Enterprises.
RECOMMENDATION:
Staff recommends adoption of the resolution
BACKGROUND:
Self-Help Enterprises (SHE) is requesting the City of Bakersfield serve as the lead applicant to submit an application to the State of California Department of Housing and Community Development (HCD) for funding in response to the Homeownership Super NOFA (HOSN), which makes available CalHome Program funds for homeownership activities.
SHE has made this request in conjunction with the existing contract for administration of the Bakersfield Community Land Trust (BCLT). All of the funds would be made available to low-income households interested in purchasing a home developed and sold by the BCLT. Leverage of funding is part of the scope of work of SHE’s current BCLT operations contract, and this application will allow SHE to achieve deeper income targeting and potentially move forward more homeownership opportunities through the BCLT.
The total application request to HCD is for $2,909,000, to provide financing for down payment and closing cost assistance for up to twenty (20) units developed by the BCLT. The total amount of loan assistance is $2,640,000, $5,000 for homebuyer education, and $264,000 for administration for a total of $2,909,000. The individual assistance per homebuyer is capped at 40% of the units' purchase price, and SHE anticipates average assistance of $132,000 per household and the ability to assist approximately twenty (20) low-income (80% Average Median Income or below) households with the purchase of a BCLT single-family home located within the City limits of Bakersfield.
Self-Help Enterprises has assisted over 2,200 families throughout its eight-county service area (Fresno County, Kings County, Kern County, Madera County, Mariposa County, Merced County, Stanislaus County, and Tulare County) with secondary financing since 1994. Additionally, Self Help Enterprises has helped over 6,600 households through the Self-Help Housing program with secondary financing and participant labor assistance since 1965. Furthermore, Self-Help Enterprises has assisted over 17,700 families with housing counseling, and over 7,000 families with owner-occupied rehabilitation throughout its 60-years of service.
As the City's administrative subcontractor, Self-Help Enterprises, will perform all duties required to implement the Mortgage Assistance Program and manage loan servicing. Program staff specializations include the following: administrative analysts performing marketing, reporting, financial management, draw requests and regulation compliance duties for grant administration; loan processors determining income eligibility, evaluating underwriting of first mortgages, determining amount of gap financing, reviewing appraisals, and aiding originating, underwriting, packaging and closing of CalHome loans in accordance with program guidelines; a certified home inspector(s) and/or an experienced rehabilitation specialist(s); conduct unit inspections to ensure a property meets state and local codes, as well as safety standards; and, certified HUD counselors provide homebuyer education services through approved curriculum that covers the five areas required by CalHome.
FISCAL IMPACT:
No fiscal impact.
COUNCIL GOAL:
Safety and Resilience
ATTACHMENT:
CalHome Resolution