Agenda Item B.8
CPMS CONSENT CALENDAR
Meeting Date: March 15, 2022
TO: Mayor and Councilmembers
FROM: Jaime A. Valdez, Neighborhood Services Director
CONTACT: Shanna Dawson, Management Analyst
SUBJECT: Housing Trust Fund of Santa Barbara County—Financial Support for Fiscal Years 2021-22 and 2022-23
RECOMMENDATION:
Authorize the City Manager to execute an Agreement for Grant Funds between the City of Goleta and the Housing Trust Fund of Santa Barbara County for the expansion of affordable rental and homeownership housing opportunities in an amount of $25,000 per year for a total of $50,000 for Fiscal Years 2021-22 and 2022-23.
BACKGROUND:
At the June 15, 2021, City Council meeting, the Council approved funding in the amount of $25,000 per year from the Housing In -Lieu Fund for Fiscal Years (FYs) 20 21-22 and 2022-23 to the Housing Trust Fund of Santa Barbara County (HTF) to i mplement the South Coast Workforce Homebuyer (SCWH) Program that provides low -cost down payment assistance to help first -time workforce families and individuals purchase an entry-level home.
HTF is a non -profit organization supporting expansion of affordable rental and homeownership housing opportunitie s for working families, single parents, minimum wage earners, middle income workforce employees, farm workers, senior citizen s and others with special needs. The services provided by HTF offer another alternative to help increase affordable housing opportunities in the City and help meet the goals identified in the General Plan to work with non -profits in exploring ways to increase affordable housing.
The City has previously contributed $25,000 per fiscal year to HTF in FYs 13 -14, 14-15, 15-16, 16-17, 17-18, 18-19, 19-20, and 20 -21 totaling $200,000. Including the adopted budgeted amounts for FYs 21-22 and 22-23, total City funding provided/pledged to HTF will total $250,000. Funding has been used to support the SCHW Program’s operations which include creation of a lending consortium which has raised over $3.5 million dollars in investment capital for the workforce homebuyer loans, design of the program guidelines 1 Meeting Date: March 15, 2022
and loan documents, negotiation of a loan servicing contract, and outreach to identify and select first mortgage lenders.
HTF is positioned to continue its implementation of th e SCWH Program during Fiscal Years 2021-22 and 2022-23. The annual grant amounts will pay for operating support to continue the implementation of the SCWH Program. The entire $50,000 in annual grant funding would be for renewal of support of the Program.
To continue to implement the SCWH Program, the HTF will deploy the remaining initial and recycled capital to fund an additional 20-25 down payment loans for first-time low to middle income workforce homebuyers in the City of Goleta and greater South Coast region. HTF will carry out targeted outreach and m arketing activities to local employers and employees to let them know about the program and the benefits it provides to local employees. HTF will provide pre -purchase counseling and information and arrange homebuyer education for prospective borrowers. HTF will underwrite, process and fund down payment loans to eligible first-time homebuyers. HTF will provide loan servicing and portfolio review, including annual homeowner compliance monitoring. HTF will handle any homebuyer loan repayments and reconveyances. HTF will recycle repaid loan capital to fund new homebuyer loans and seek to renew and negotiate new investments to raise capital to continue the program into the future. The City of Goleta will be a priority area for implementation of the program. These activities will occur in FY21-22 and FY22-23.
DISCUSSION:
Staff inadvertently did not include the approval of the grant agreement with HTF with the other Support to Other Agencies grants funded by the General Fund that were presented to City Council a t its June 1, 2021 meeting. The recommended action in this report will accomplish that. However, the allocation of funding from the City’s Housing In-Lieu Fund was approved by the City Council with the adoption of the Operating and Capital Improvement Budg et for FY 2021 -22 and FY 2022 -23, so no additional allocation is needed. Staff will use the same grant template approved by City Council on June 1, 2021 for the other General Fund funded Support to Other Agencies grants.
GOLETA STRATEGIC PLAN:
This action aids with implementation of goals from the City of Goleta’s Homelessness Strategic Plan, adopted by City Council in April, 2021, by increasing affordable housing opportunities within the City of Goleta.
FISCAL IMPACTS:
None, as the funds for this program were already approved and allocated to the line item listed for the Housing In-lieu Fund (225-60-6100-54013).
2 Meeting Date: March 15, 2022
ALTERNATIVES:
There is no alternative to the recommended action as the grant allocations have already been adopted in the FY 2021-22 and 2022-23 Budget Plan.
Reviewed By: Legal Review By: Approved By:
___________________ ___________________ _________________ Kristine Schmidt Megan Garibaldi Michelle Greene
Assistant City Manager City Attorney City Manager
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