Camarillo City Council
AGENDA REPORT
Date: December 11, 2024
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: David Sanchez, Director of Community Development Subject: Proposed Updates to the Workforce Housing Downpayment Assistance Program Guidelines and Camarillo Workforce Housing Down Payment Assistance Program – Loan Approval
BACKGROUND
On December 14, 2022, the City established the Camarillo Workforce Housing Down Payment Assistance Program (DAP). The DAP provides eligible first-time homebuyers with up to a $50,000 down payment assistance loan for the purchase of a home in Camarillo. The loan does not require monthly payments and accrues 3% simple interest.
Currently, one balloon payment for the loan and interest amount is due at the end of the ten-year term. This assistance reduces the amount of the loan needed from the primary mortgage lender and reduces the monthly cost of housing to the household.
The DAP provides priority to local Camarillo residents and employees that work in Camarillo. Additional priority is granted low-income households and to Camarillo residents within three identified census tracts (54.03, 53.04, and 55.02) that have a high level of overcrowding, an unusually high-concentration of minorities, or a very high senior population in line with the Affirmatively Furthering Fair Housing Goals of the City’s Housing Element.
The City has received grant funds in advance totaling $699,358.32, inclusive of $6,065.32 of accrued interest which is available to fund requested loans. The Camarillo Workforce Housing Down Payment Assistance Program is currently being administered, implemented, and marketed by City Staff. Currently three applicants are actively looking for a home.
Proposed Changes to the WFH DAP and Loan Approval
December 11, 2024
2 2
2 9
DISCUSSION
Staff is proposing an amendment to the program to extend the maturity date, term of the loan, and interest accrual period from the currently established ten years to fifteen years.
The amendment will make the downpayment assistance loan compatible with certain primary loans that need to adhere to Federal Nation Mortgage Association (Fannie Mae) guidelines and broaden the pool of buyers by allowing individuals pursuing a primary conventional loan with Fannie Mae to avail of the DAP. Fannie Mae loan terms preclude the use of any downpayment assistance programs that require a balloon payment prior to the fifteen-year mark. The attached redline documents reflect the proposed change.
Staff is also requesting the City Council’s authorization to issue a $50,000 Downpayment Assistance Program Loan to a three-person household for the purchase of a single-family residence based on the amended guidelines. The household resides within the City and both adults are employed within City limits. The three-bedroom and two-bath home is located at 3254 Milligan Drive, Camarillo, CA 93010.
The household is requesting a down payment assistance loan in the amount of $50,000.
City Staff has reviewed this application and is recommending the City approve the loan request subject to the revised guidelines.
FISCAL IMPACT
Grant funds are available for this loan approval.
CEQA DETERMINATIONS
City staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, that the Camarillo Workforce Housing Down Payment Assistance Program is not subject to CEQA review because it can be seen with certainty that there is no possibility that the Camarillo Workforce Housing Down Payment Assistance Program may have a significant effect on the environment. In this case, a first-time homebuyer loan can be seen with certainty to have no possibility to have a significant effect on the environment. Therefore, this item is exempt from CEQA.
RECOMMENDATION
1. Find that the Camarillo Workforce Housing Down Payment Assistance Program is exempt from the California Environmental Quality Act (“CEQA”) under the State CEQA Guidelines §§ 15061(b)(3); and
2. Adopt a resolution approving the proposed changes to the Workforce Housing Downpayment Assistance Program; and
3. Adopt a resolution authorizing a budget appropriation, approving the $50,000 loan disbursement, and authorizing the City Manager to execute all associated documents, including acceptance of the associated deed of trust.
Proposed Changes to the WFH DAP and Loan Approval
December 11, 2024
2 2
2 9
ATTACHMENTS
1. Resolution approving the proposed changes to the Workforce Housing Downpayment Assistance Program
2. Resolution approving the $50,000 Loan Disbursement
3. Camarillo Workforce Housing Downpayment Assistance Program Guidelines Redlines
4. Camarillo Workforce Housing Downpayment Assistance Program Loan Agreement and Exhibits Redlines
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None