GRASS VALLEY
City Council Regular Meeting, Capital Improvements Authority and Redevelopment "Successor Agency"
Tuesday, May 26, 2026 at 6:00 PM
Council Chambers, Grass Valley City Hall | 125 East Main Street, Grass Valley, California Telephone: (530) 274-4310 – Fax: (530) 274-4399
E-Mail: [email protected] Web Site: www.cityofgrassvalley.com AGENDA
Any person with a disability who requires accommodations to participate in this meeting should telephone the City Clerk’s office at (530)274-4390, at least 48 hours prior to the meeting to make a request for a disability related modification or accommodation.
Mayor Hilary Hodge, Vice Mayor Haven Caravelli, Councilmember Jan Arbuckle, Councilmember Joe Bonomolo, Councilmember Tom Ivy
MEETING NOTICE
City Council welcomes you to attend the meetings electronically or in person at the City Hall Council Chambers, located at 125 E. Main St., Grass Valley, CA 95945. Regular Meetings are scheduled at 6:00 p.m. on the 2nd and 4th Tuesday of each month. Your interest is encouraged and appreciated.
This meeting is being broadcast “live” on Comcast Channel 17 & 18 by Nevada County Media, on the internet at www.cityofgrassvalley.com, or on the City of Grass Valley YouTube channel at https://www.youtube.com/@cityofgrassvalley.com Members of the public are encouraged to submit public comments via voicemail at (530) 274-4390 and email to [email protected]. Comments will be reviewed and distributed before the meeting if received by 5pm. Comments received after that will be addressed during the item and/or at the end of the meeting. Council will have the option to modify their action on items based on comments received. Action may be taken on any agenda item.
Agenda materials, staff reports, and background information related to regular agenda items are available on the City’s website: www.cityofgrassvalley.com. Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet will be made available on the City of Grass Valley website at www.cityofgrassvalley.com, subject to City staff’s ability to post the documents before the meeting.
Please note, individuals who disrupt, disturb, impede, or render infeasible the orderly conduct of a meeting will receive one warning that, if they do not cease such behavior, they may be removed from the meeting. The chair has authority to order individuals removed if they do not cease their disruptive behavior following this warning. No warning is required before an individual is removed if that individual engages in a use of force or makes a true threat of force. (Gov. Code, § 54957.95.)
City of Grass Valley, CA AGENDA May 26, 2026
Council Chambers are wheelchair accessible and listening devices are available. Other special accommodations may be requested to the City Clerk 72 hours in advance of the meeting by calling (530) 274-4390, we are happy to accommodate.
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
AGENDA APPROVAL - The City Council reserves the right to hear items in a different order to accomplish business in the most efficient manner.
REPORT OUT OF CLOSED SESSION
INTRODUCTIONS AND PRESENTATIONS
1. WM (Waste Management) Contract Update
2. Pride Month Proclamation & Presentation
3. National Public Works Week Proclamation
CITY UPDATE
PUBLIC COMMENT - Members of the public are encouraged to submit public comments via voicemail at (530) 274-4390 and email to [email protected]. Comments will be reviewed and distributed before the meeting if received by 5pm. Comments received after 5pm will be addressed during the item and/or at the end of the meeting. Council will have the option to modify their action on items based on comments received. Action may be taken on any agenda item. There is a time limitation of three minutes per person for all emailed, voicemail, or in person comments, and only one type of public comment per person. Speaker cards are assigned for public comments that are on any items not on the agenda, and within the jurisdiction or interest of the City. Speaker Cards can be pulled until the opening of public comment at which time sign ups will no longer be allowed.
These cards can be found at the City Clerks desk. If you wish to speak regarding a scheduled agenda item, please come to the podium when the item is announced. When recognized, please begin by providing your name and address for the record (optional). Thirty minutes of public comment will be heard under this item in order of the speaker card assigned and the remaining general public comments will be heard at the end of the meeting. We will begin with number one.
CONSENT ITEMS -All matters listed under the Consent Calendar are to be considered routine by the City Council and/or Grass Valley Redevelopment Agency and will be enacted by one motion in the form listed. There will be no separate discussion of these items unless, before the City Council and/or Grass Valley Redevelopment Agency votes on the motion to adopt, members of the Council and/or Agency, staff or the public request specific items to be removed from the Consent Calendar for separate discussion and action but Council action is required to do so (roll call vote).Unless the Council removes an item from the Consent Calendar for separate discussion, public comments are invited as to the consent calendar as a whole and limited to three minutes per person.
4.
City of Grass Valley, CA AGENDA May 26, 2026
5. Contract Authorization for Police Records Management System CEQA: Not a project
Recommendation: Authorize the Chief of Police to execute a five-year contract with Sun Ridge Systems, Inc. in an amount not to exceed $319,141 (year 1) for a new Police Records Management System (RMS) and Computer Aided Dispatch (CAD), subject to legal review.
6. Direction to file annual reports for Landscaping and Lighting Districts (LLD) and Benefit Assessment Districts (BAD) for Fiscal Year 2026-27
CEQA: Not a project
Recommendation: It is recommended that the City Council adopt five Resolutions (2026-16, 2026-17, 2026-18, 2026-19, and 2026-20) directing the filing of the annual reports for Landscaping and Lighting Districts (LLD) – Annual Assessments for Fiscal Year 2026-27 and Benefit Assessment Districts (BAD) – Annual Assessments for Fiscal Year 2026-27.
7. HOME investment Partnership (HOME) Application to the State of California CEQA: Not a project
Recommendation: Approve Resolution 2026-22 authorizing the submittal of an application to the State of California Department of Housing and Community Development (HCD) for HOME Program Income funds to be used for the City’s FirstTime Homebuyer Assistance Program
8. Wastewater Treatment Plant Boiler Replacement Project – Reject Protest and Award Contract
CEQA: Categorically Exempt – Section 15301
Recommendation: That Council 1) consider the merits of a bid protest from ACCO Engineered Systems; and 2) adopt Resolution Number 2026-21 rejecting the bid protest from ACCO Engineered Systems; a) awarding a contract for the Wastewater Treatment Plant Boiler Replacement Project to TNT Industrial Contractors, Inc., in the amount of $474,551.00; b) authorizing the Interim City Manager to execute the construction contract, subject to legal review and, c) authorizing the City Engineer to approve construction change orders for up to 10% of the contract amount.
ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION OR SEPARATE ACTION AND /
OR ANY ADDED AGENDA ITEMS
REORGANIZATION RELATED ITEMS
PUBLIC HEARING
ADMINISTRATIVE
9. FY 2026-27 Preliminary Budget Overview
CEQA: Not a project
Recommendation: It is recommended that the City Council 1) Approve the FY 2026- 27 Preliminary Budget and provide any additional direction to staff related to the
City of Grass Valley, CA AGENDA May 26, 2026
preparation of the 2026-27 Final Budget; and 2) Set June 9, 2026, as the date for the public hearing for adoption of the FY 2026-27 Final Budget
BRIEF REPORTS BY COUNCIL MEMBERS
CONTINUATION OF PUBLIC COMMENT
ADJOURN
POSTING NOTICE
This is to certify that the above notice of a meeting of The City Council, scheduled for Tuesday, May 26, 2026, at 6:00 p.m., was posted at city hall, easily accessible to the public, as of 5:00 p.m. Friday, May 22, 2026.
________________________
Taylor Whittingslow, City Clerk
PROCLAMATION
PRIDE MONTH
JUNE 2026
Whereas, the City of Grass Valley is a welcoming community and exceptional place to love, learn, work, play, and raise a family; and
Whereas, the principles upon which our nation was founded include liberty, equality, and the protection of individual rights; and
Whereas, the City of Grass Valley values respect, dignity, and inclusion for all members of the community; and
Whereas, diversity in all its forms contributes to the strength, character, and vibrancy of our city; and
Whereas, residents, students, employees, and business owners who identify as part of the LGBTQ+ community contribute meaningfully to the economic, cultural, and civic life of Grass Valley; and
Whereas, the month of June is widely recognized as Pride Month, a time to acknowledge the importance of treating all people with fairness and respect; NOW, THEREFORE, BE IT RESOLVED that the Grass Valley City Council hereby proclaims June 2026 as Pride Month in the City of Grass Valley and encourages residents to continue fostering a community grounded in respect, inclusion, and equal opportunity for all.
Dated this 26th day of May, 2026
_____________________________ _____________________________ Hilary Hodge, Mayor Haven Caravelli, Vice Mayor
________________________________
Jan Arbuckle, Council Member
____________________________ _____________________________ Thomas Ivy, Council Member Joseph Bonomolo, Council Member
Item # 2.
A Brief History & Look to the Future
Thank You!
Grass Valley City Council Meeting
May 26, 2026
Rick Partridge(he/him)
Item # 2.
Nevada County Pride is…..
• A social network of gay, lesbian, bisexual, queer, and transgender persons, and their allies, who celebrate and support the LGBTQ+ community in western Nevada County, California, including Grass Valley and Nevada City. • An all-volunteer run, 100% donation funded organization, 501(c)(3) whose events are all free to attendees.
• We sponsor monthly potlucks hosted in private homes and many other events not only during Pride Month, but throughout the year such as TDOR, Speakers Bureau and more
• We also encourage others to initiate and organize events that we include on our calendar and other communications.
• Table at community events: GV Markets, NC Hot Summer Nights, Sierra College Pride Days, BriarPatch..and more!
Item # 2.
A Brief Look Back…..
• Founded about 40 years ago by a group of gay men who met monthly in members homes for potlucks. Communication was by postcard.
• March 2022 gathering of about 17 Queer Nevada County leaders to talk about better collaboration and communication for events and how to “reinvent” NCP for the 21st century post-COVID
• Hosted CA LGBT+ Caucus in May 2023. One outcome was community roundtable discussions with SNMH to improve healthcare for LGBTQ+ community • Pride Month 2023 – More than 10 events with 1000+ attendees from NC Pride Flag Raising to Queer Family Picnic
• August 2023 – Hosted first ever full day Pride Festival at Miner’s Foundry, more than 650 attendees
• October 2023 – Granted 501(c)(3) Non-profit status
• March 2024 –Launched two monthly support groups in partnership with BFFY and CMH • Fourth Annual Pride Family Picnic June 2025 with 450 attendees and 20 community organization tables
• June 2025 – Nevada County BOS joins the Cities of Grass Valley, Nevada City and Town of Truckee in issuing first June Pride Month Proclamation
Item # 2.
Current Status…..
Our Mission: “Nevada County Pride celebrates, supports, and advocates for the LGBTQIAP+ community in Western Nevada County by promoting Community, Diversity, and Respect through Events, Education, and Resources”.
Our Vision: We envision a Nevada County that is a safe, welcoming and vibrant community where all LGBTQ+ people are respected, and every individual has a sense of belonging and pride.
Our Values:
• Visibility: We are committed to ensuring that LGBTQ+ voices, stories, and experiences are heard, recognized, and valued in all spaces.
• Initiative: We take responsibility for driving change and encourage others to step up and lead in creating a more just and inclusive society.
• Respect: We value each individual’s identity, experiences, and perspectives, fostering an environment of inclusion, mutual respect and understanding.
• Collaboration: We believe in working together, fostering strong partnerships, and amplifying collective impact to create a more inclusive world.
• Resilience: We honor the strength and perseverance of the LGBTQ+ community in the face of adversity and celebrate our ability to thrive despite ignorance and hate.
• Empowerment: We empower LGBTQ+ individuals to take ownership of their voices, rights, and futures, supporting their journey toward self-determination and success.
Item # 2.
And Looking Forward…..
• Our Strategic Priorities:
• Increase Visibility
• Cultivate Community Relationships
• Financial Stability
• Intergenerational Engagement
• Build Organization Capacity
• Participating in Nevada County monthly Equity, Inclusion, and Leadership Alliance meetings (EILA) and other coalitions such as Color Me Human, BFFY, What’s Up Wellness • Increase Collaboration with Truckee, Placer and Tri-County and Chico Pride Centers • A full year of Exciting Events in 2026!
• Long-Term: Fundraising! Future Paid staff and Community Center
Item # 2.
Attend Our 2026 Events and Activities
Join us for Monthly
Potluck Socials to
connect and share.
Don't miss the Pride
Family Picnic on June
28th for fun and
celebration.
Participate in our
Speakers Bureau to
hear inspiring stories.
Attend the NCP Benefit
concert with Barbara
Higbie & Teresa Trull on
June 16th.
Enjoy Queer Movie
Night on June 14th at
the Onyx at the Nevada
Theatre.
Attend monthly Queer
Book Club for thoughtprovoking discussions.
Celebrate with us
during the Nevada City
Pride Flag Raising
ceremony on June 1st.
Visit our GV Markets
and NC Hot Summer
Nights Booth for
information and
resources.
Honor lost lives at the
Transgender Day of
Remembrance.
Join us at BriarPatch
Pride on the Patio on
June 26th for local
festivities.
March in the first
Nevada City Pride
Parade on June 6th
Explore our Business
Directory to support
local businesses.
Connect online through
our Facebook and IG
Groups. Sign-up for our
newsletter
Enjoy Gay Day at the
Yuba River on August
1st
Drop in for the
Monthly Dyke Night
Social Gatherings
Item # 2.
Item # 2.
Lavender Glow | Queer Art & Our Shared History
• “Art in Public Spaces” collaboration between and Nevada County Arts & Culture and NC Pride
• Opens at the Rood Government Center on May 26th and runs through August 28th, with an Opening Reception on Friday, June 12. • Coinciding with Pride Month, also includes a satellite exhibit of queer artists in the Nevada City City Hall CHAMP Gallery, in partnership with the Nevada City Arts Commission.
• From the Program: Beginning with Nisenan history into the present day, Lavender Glow reflects on, and celebrates, the lived experiences and legacies of queer individuals and groups whose collective influence demonstrates a profound investment in place, arts, and culture. Alongside highlights of local history, Lavender Glow features 41 artworks selected from 127 submissions. Page 13 Item # 2.
Item # 2.
PROCLAMATION
NATIONAL PUBLIC WORKS WEEK
MAY 17-23, 2026
Whereas, public works professionals provide essential services that support the daily lives, health, safety, and well-being of the Grass Valley community; and Whereas, these dedicated individuals plan, build, operate, and maintain the infrastructure that keeps our city running, including streets, water systems, storm drainage, facilities, and public spaces; and
Whereas, public works staff are often the first to respond during emergencies, storms, and other critical events, working behind the scenes to protect residents and restore essential services; and
Whereas, their work contributes to a strong local economy, environmental stewardship, and a high quality of life for current and future generations; and Whereas, National Public Works Week, sponsored by the American Public Works Association, is observed each year to recognize the important contributions of public works professionals across the nation;
NOW, THEREFORE, the City Council of the City of Grass Valley does hereby proclaim May 17–23, 2026, as National Public Works Week in the City of Grass Valley, and encourages all residents to recognize and thank the public works professionals who keep our community safe, clean, and functioning every day.
Dated this 26th day of May, 2026
_____________________________ _____________________________ Hilary Hodge, Mayor Haven Caravelli, Vice Mayor
________________________________
Jan Arbuckle, Council Member
____________________________ _____________________________ Thomas Ivy, Council Member Joseph Bonomolo, Council Member
Item # 3.
GRASS VALLEY
City Council Regular Meeting, Capital Improvements Authority and Redevelopment "Successor Agency"
Tuesday, May 12, 2026 at 6:00 PM
Council Chambers, Grass Valley City Hall | 125 East Main Street, Grass Valley, California Telephone: (530) 274-4310 – Fax: (530) 274-4399
E-Mail: [email protected] Web Site: www.cityofgrassvalley.com
MINUTES
CALL TO ORDER
Meeting called to order at 6:02 pm.
PLEDGE OF ALLEGIANCE
Mayor Hodge led the pledge of allegiance.
ROLL CALL
Present
Councilmember Arbuckle
Councilmember Bonomolo
Councilmember Ivy
Vice Mayor Caravelli
Mayor Hodge
AGENDA APPROVAL -
Motion made by Councilmember Arbuckle, Seconded by Vice Mayor Caravelli.
Voting Yea: Councilmember Arbuckle, Councilmember Bonomolo, Councilmember Ivy, Vice Mayor Caravelli, Mayor Hodge
REPORT OUT OF CLOSED SESSION
No reportable action from closed door.
INTRODUCTIONS AND PRESENTATIONS
1. Poppy Day Proclamation
2. Local and Community History Month Proclamation
3. District Attorney Family Justice Center Presentation
CITY UPDATE
4. Nugget Update
PUBLIC COMMENT -
In Person: Robin Galvin-Davies
Virtual Public comments attached.
Item # 4.
City of Grass Valley, CA MINUTES May 12, 2026
CONSENT ITEMS -
Councilmember Bonomolo requested that item #6 Consideration of WM fee increase be pulled for discussion.
Motion made to approve with the removal of item #6 from consent for discussion by Councilmember Arbuckle. Seconded by Councilmember Bonomolo.
Voting Yea: Councilmember Arbuckle, Councilmember Bonomolo, Councilmember Ivy, Vice Mayor Caravelli, Mayor Hodge
5. Approval of the Regular Meeting Minutes of April 28th, 2026.
Recommendation: Council approve minutes as submitted.
6. Professional Services Agreement with WBCP, Inc. to Conduct an Executive Recruitment for the Position of City Manager
CEQA: Not a project
Recommendation: Approve a Professional Services Agreement with WBCP, Inc. for an Amount Not to Exceed $36,800 to Conduct an Executive Recruitment for the Position of City Manager and Authorize the Mayor to Sign the Agreement
7. California Air Resources Board (CARB) Community Planning and Capacity Building Grant Application – Future Paths Grass Valley: Everyday Mobility Connecting People and Places Project
CEQA: Not a project
Recommendation: That the City Council adopt Resolution No. 2026-12 authorizing the Deputy City Manager to execute all documents necessary to accept and administer the California Air Resources Board (CARB) Community Planning and Capacity Building Grant for the Future Paths Grass Valley: Everyday Mobility Connecting People and Places Project, and authorize the Finance Director to process supplemental appropriations consistent with the grant documents.
ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION OR SEPARATE ACTION AND /
OR ANY ADDED AGENDA ITEMS
8. Consideration of Waste Management’s annual fee adjustments and new fees for service and disposal.
CEQA: Not a project
Recommendation: That Council adopt Resolution 2026-11 adjusting service and disposal rates to Waste Management’s fee schedule.
Alex Gammelgard, Interim City Manager, gave overview to the Council.
Public comment: None
Motion to adopt Resolution 2026-11 adjusting service and disposal rates to Waste Management’s fee schedule.
REORGANIZATION RELATED ITEMS
PUBLIC HEARING
ADMINISTRATIVE
BRIEF REPORTS BY COUNCIL MEMBERS
Item # 4.
City of Grass Valley, CA MINUTES May 12, 2026
Councilmember Bonomolo attended a meeting with citizens regarding skate park lighting.
Councilmember Ivy had nothing to report. Councilmember Arbuckle attended the ERC Tour of Nevada County, On the Town with GVPD, and League of Cities meetings. Vice Mayor Caravelli attended the Fire Wise Ready event, Sierra Harvest Mothers Day event and encourages everyone to go look at the Veterans Banners on S. Auburn St. Mayor Hodge attended an event on Human Trafficking & Internet Safety, Del Oro Showing, Summit on Poverty, May Day event, Wednesday with the Mayor is tomorrow.
CONTINUATION OF PUBLIC COMMENT
ADJOURN
Meeting was adjourned at 7:01 pm.
________________________ ________________________
Hilary Hodge, Mayor Taylor Whittingslow, City Clerk
Adopted on:_________
Item # 4.
City of Grass Valley
City Council
Agenda Action Sheet
Title: Contract Authorization for Police Records Management System CEQA: Not a project
Recommendation: Authorize the Chief of Police to execute a five-year contract with Sun Ridge Systems, Inc. in an amount not to exceed $319,141 (year 1) for a new Police Records Management System (RMS) and Computer Aided Dispatch (CAD), subject to legal review.
Prepared by:
Steve Johnson - Deputy Chief of Police
Council Meeting Date: 05/26/2026 Date Prepared: 05/20/2026 Agenda: Consent
Background Information: The Grass Valley Police Department (GVPD) uses a Records Management System (RMS) and Computer Aided Dispatch (CAD) software designed for public safety agencies to manage records and coordinate emergency dispatch and response. The Police Department started using its current RMS/CAD vendor over 25 years ago. Over that time, the product they provide has not changed significantly and has had only one major revision. That software has now reached end-of-life as it is no longer being supported.
During the past two decades of using our current RMS vendor only one major revision has been deployed. With the rapid advancements in technology and the increasingly growing regulatory and reporting requirements for California law enforcement a evergreen system is desirable. Replacing the current RMS is necessary to ensure continued compliance with California law, improve operational efficiency, and will better position our agency to meet current and future legal mandates while supporting effective, data-driven policing. Additionally, as a member of the Nevada County Regional Dispatch environment, the move by the County and other partners necessitates our move to the same platform to ensure continuity of service, particularly related to computer aided dispatch connectivity.
As a result, GVPD has worked in conjunction with the Truckee Police Department, the Nevada City Police Department, and the Nevada County Sheriff’s Office (NCSO) for all Nevada County law enforcement agencies to transition to Sun Ridge Systems as our new RMS/CAD vendor. With all law enforcement within the county using the same vendor, it will better enable all agencies to seamlessly operate for any coordinated emergency response. At the same time, this system is capable of being used in a
Item # 5.
stand-alone dispatch center giving Grass Valley options as we move into the future.
All agencies being on the same software will also allow continuous integration with the District Attorney’s Office for criminal prosecutions.
The Nevada County Sheriff’s Office collaborated with the County’s Purchasing Department to source a competitively awarded agreement issued by Yuba County’s Administrative Services Department, RFP 901639 with Sun Ridge Systems, Inc. Through Nevada County purchasing rules, NCSO received Board of Supervisor approval to execute a contract with Sun Ridge Systems, Inc. on April 7, 2026 (see attached).
NCSO’s contract approval with Sun Ridge Systems Inc. has now allowed for the benefit of a group discount to take place for GVPD, as well as for the other two Nevada County law enforcement entities seeking the same RMS vendor. Additionally, Sun Ridge Systems Inc. has a strong reputation for efficiency and customer satisfaction with approximately 240 other California law enforcement customers.
The funds for this project have been vetted as an appropriate use of Measure E funds by the Measure E Oversight Committee on May 19, 2026. Funds are not anticipated to be spent until FY26/27 and will be included in the FY26/27 City Budget.
Council Goals/Objectives: The execution of this action attempts to achieve Strategic Goal #6 – Exceptional Public Safety
Fiscal Impact: This is a five-year contract with year-one implementation cost being $319,141 which includes deployment of the new RMS system and maintenance costs for year one. Annual vendor maintenance costs for years two-five will be budgeted each year in the police department budget and the cost of which is consistent with existing costs for the current system.
This fiscal impact is specific to the vendor for implementation.
Funds Available: Yes Account #: Measure E
Reviewed by: Alex Gammelgard – Interim City Manager/Police Chief Attachments:
(1) Nevada County Sheriff Board Agenda Memorandum
(2) Proposed Agreement with Sun Ridge Systems, Inc.
Item # 5.
Shannan Moon
Sheriff/Coroner
Public Administrator
NEVADA COUNTY
SHERIFF’S OFFICE
NEVADA COUNTY BOARD OF SUPERVISORS
Board Agenda Memo
MEETING DATE: April 7, 2026
TO: Board of Supervisors
FROM: Shannan Moon, Sheriff-Coroner-Public Administrator SUBJECT: Resolution approving a software and service agreement between Sun Ridge Systems, Inc. and County of Nevada for a Records Management System, Jail Management System and Computer Aided Dispatch software and support agreement for a five-year term in the amount of $1,972,957 and authorizing the execution of the agreement, and amending Fiscal Year 2025/26 budget (4/5 affirmative vote required)
RECOMMENDATION: Adopt Resolution
FUNDING: Funding will affect the Sheriff’s Office Corrections, Administration, and Dispatch budgets. The Fiscal Year 2025/26 funding requirement is $1,397,567.00 for software implementation and support service maintenance for Year 1. Funding will come in part ($700,000) from the 2023 DHCS CalAIM PATH Round 3 grant (State funding) already received by the County. Remaining funding will come from release of the County’s Information Systems Infrastructure assignment ($697,567). Future year support maintenance costs will be included in the Sheriff’s budgets and there is no additional General Fund impact.
BACKGROUND: The current Records Management System (RMS), Jail Management System (JMS) and Computer Aided Dispatch (CAD) software are used by public safety agencies to manage records, oversee jail operations, and coordinate emergency dispatch and response. The Nevada County Sheriff’s Office’s (NCSO) current software system has reached end of life and aspects of the software are no longer supported.
IGS has identified the records management system upgrade as essential to their information systems infrastructure security initiative. IGS and NCSO have therefore been collaborating on replacement options for the current software and have conducted research and surveyed other California law enforcement agencies. IGS determined that Sun Ridge System, Inc. was rated one of the highest software systems available for law enforcement agencies.
All divisions of NCSO toured a neighboring agency, Yuba County, who recently underwent the Request for Proposal (RFP) process, of which they selected Sun Ridge Systems, Inc. Subsequently,
Item # 5.
Sun Ridge Systems Inc. was selected as the software which best meets the needs of NCSO and has the most opportunity for growth.
The Sun Ridge software has a strong representation among local law enforcement agencies in California, specifically demonstrating the capability of a CalAIM/Re-Entry module. This specific module will allow NCSO to track CalAIM Justice Involved (JI) services provided to our eligible incarcerated persons, a requirement by the Department of Health Care Services.
NCSO has received approval from DHCS to utilize a portion of our CalAIM PATH Round 3 grant funding for the replacement of the jail management system and corresponding integrations.
Further, NCSO has worked in conjunction with Grass Valley Police Department (GVPD), Nevada City Police Department (NCPD) and Truckee Police Department (TPD) for all Nevada County law enforcement agencies to transition to Sun Ridge Systems. This will allow our agencies to seamlessly operate through our Regional Dispatch Center and in any coordinated emergency response. All agencies being on the same software will allow continuous integration with the District Attorney’s Office.
Total project costs for the five-year period is $1,972,957 and are broken out by year as follows:
project implementation and Year 1 Support – $1,397,567; Year 2 Support– $134,481; Year 3 Support– $139,860; Year 4 Support– $146,853; and Year 5 Support – $154,196.
The Sheriff’s Office collaborated with the Purchasing Department to source a competitively awarded agreement issued by Yuba County’s Administrative Services Department, RFP 901639 with Sun Ridge Systems, Inc.
This resolution is specifically asking Board approval for leveraging a “Piggyback” agreement to the Yuba County Sun Ridge Systems, Inc., RIMS and InCustody software program.
The Nevada County Purchasing Policy Section 4.5(B) allows for purchases made from other public agencies competitive solicitations, or by use of Joint Powers Agreements, Cooperative Purchasing programs, Pooling Agreements, and other recognized types of agreements used by government agencies to combine agency requirements for purchases to obtain volume discounts.
Therefore, approval is required to execute this Agreement per Purchasing Policy section 7.1(B), which requires all contracts with a total annual cost of more than $50,000 must be approved by the Board of Supervisors.
Purchasing Policy Section 7.3(D) allows for change orders, alterations, or addenda to a Board of Supervisors’ approved contract that changes or amends the contract in an amount that is not more than ten percent (10%) of the Board-approved amount, not to exceed $50,000.
Initiated by: Georgette Aronow
Approved by: Shannan Moon
Item # 5.
Sun Ridge Systems, Inc. Contract for Grass Valley Page 1 SUN RIDGE SYSTEMS, INC.
SOFTWARE AND SERVICES AGREEMENT
This Software and Services Agreement (“Agreement”) is executed in duplicate as of __________, 2026, between Sun Ridge Systems, Inc., a California corporation (“Sun Ridge”), and City of Grass Valley, a California municipal corporation (“the City”) located at 125 E. Main Street, Grass Valley, CA 95945.
Section 1. Agreement. That for and in consideration of payments and agreements hereinafter mentioned to be made and performed by the City, and under the conditions set forth in this Agreement, Sun Ridge agrees to provide computer software (“Software”) and services (“Services”) to the City as described in Exhibit A, Scope of Work, attached hereto and incorporated herein. The Software support and maintenance services to be provided by Sun Ridge as part of the Services are more specifically described in Exhibit C attached hereto and incorporated herein (“Software Support Services Agreement”).
Section 2. City Project Manager. Sun Ridge shall work under the general direction of Dale Norvell in fulfilling this Agreement.
Section 3. Scope of Work. The project that is the subject of this Agreement shall consist of the delivery by Sun Ridge to the City of the Software and Services (the “Project”) described in Exhibit A.
Section 4. Payment Schedule. In consideration for the Software and Services to be provided by Sun Ridge under this Agreement, the City agrees to pay Sun Ridge the Total Contract Amount (“Contract Amount”) given in Exhibit B according to the following schedule (“Payment Schedule”):
Milestone Amount of Payment
Project Initiation 25% of Contract Amount
Software Installation Complete 25% of Contract Amount
Training Complete 25% of Contract Amount
Final Acceptance 25% of Contract Amount
The City shall not be entitled to withhold or delay payments due to Sun Ridge pursuant to the above Payment Schedule due to delay in the delivery, installation, or testing of Software items described in Exhibit A where the delay is the result of action or inaction or breach of this Agreement by the City, its agents or employees or the action or inaction of a third party which is not within Sun Ridge's reasonable control.
Section 5. Invoices. Invoices shall be sent to:
GVPD Administration – [email protected]
Accounts Payable – [email protected]
Upon receipt of the invoice, the City shall verify that the invoice has been properly prepared and that the conditions of payment have been fulfilled. If the payment conditions have been fulfilled, the invoice shall be processed and paid by the City within thirty (30) days after the City’s receipt thereof.
Item # 5.
Sun Ridge Systems, Inc. Contract for Grass Valley Page 2 In addition to any other amounts for which the City is liable under this Agreement, the City agrees to pay to Sun Ridge a late charge equal to one percent (1%) of the amount due if the City fails to pay Sun Ridge any amount that is due and owing pursuant to this Agreement within sixty (60) days after the City’s receipt of an invoice from Sun Ridge. Any invoiced amounts that are due and owing under this Agreement which the City fails to pay to Sun Ridge within ninety (90) days after the City’s receipt of an invoice from Sun Ridge shall thereafter bear interest at the rate of twelve percent (12%) per annum or the highest interest rate allowed by applicable law, whichever is less.
Section 6. Term of Agreement. Unless terminated earlier in accordance with the provisions of this Agreement or applicable law, the term of this Agreement (“Term”) shall be from the date shown on the first page of this Agreement through completion of the Project. Completion of the Project means the installation by Sun Ridge of all of the Software, the completion by Sun Ridge of all training and other Services and the payment by the City to Sun Ridge of the entire Contract Amount. The Project schedule is to be separately generated and agreed to between the parties. Notwithstanding the foregoing, the License described in Section 9 below will remain in effect until it is terminated pursuant to Section 9.
Section 7. Warranty/Disclaimer of Liability.
a. Sun Ridge warrants that upon delivery, and thereafter at all times during the Term, the Software substantially conforms to its Documentation and is free from defects that will materially impair its use. The City’s sole and exclusive remedy for breach of this warranty will be repair or replacement of the Software. Sun Ridge will make reasonable efforts to correct errors in the Software but does not warrant that the Software is error-free or will perform without interruption. The City has relied solely upon its own investigation and judgment in selecting the Software and not upon any representations or promises of Sun Ridge except as may be expressly stated in this Agreement.
b. THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER
WARRANTIES PERTAINING TO THE SOFTWARE, EXPRESS OR IMPLIED, AND SUN RIDGE
SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
c. IN NO EVENT WILL SUN RIDGE BE LIABLE FOR LOST
BUSINESS, INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES,
HOWEVER CAUSED, WHETHER FOR BREACH OF WARRANTY, CONTRACT, TORT (INCLUDING NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE) ARISING OUT OF THE
QUALITY, CONDITION OR USE OF THE SOFTWARE OR ANY OTHER PART OF THE PRODUCT. IN NO EVENT WILL SUN RIDGE BE LIABLE FOR ANY AMOUNT WHICH EXCEEDS THE AMOUNT PAID BY THE CITY FOR THE PRODUCT.
Section 8. Final Acceptance. For thirty (30) days from the beginning of the City’s Operational Use of the Software or forty (40) days after the completion of installation and training by Sun Ridge, whichever comes first (the “Test Period”), the City shall test the system for defects and anomalies. “Operational Use” is defined as the City’s use of the Sun Ridge Software in the course of the City’s daily business activities. During the Test Period, Sun Ridge shall address and attempt to resolve issues with the Software identified by the City under the Software Support Services Agreement (Exhibit C). At the end of the Test Period, the City shall accept or reject the Software as follows:
a. If the City determines that the Software is performing to its satisfaction it shall immediately provide written notice to Sun Ridge of final acceptance of the Software (“Final Acceptance Notice”), and upon receipt of a valid invoice from Sun Ridge, shall
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 3 process and pay the final milestone of the Contract Amount including any additional outstanding milestone Payment Amounts. Any remaining issues with the Software shall be covered as part of the original cost of the system and handled as maintenance items under the Software Support Services Agreement (Exhibit C).
b. If the City decides to not accept the Software, then it must so notify Sun Ridge in writing within ten (10) calendar days after the end of the Test Period (a “Rejection Notice”). If a Rejection Notice is given, this Agreement shall be automatically terminated and all payments already made by the City to Sun Ridge, less the cost of project management, installation, data conversion, and training services provided up to the date of termination shall be returned to the City by Sun Ridge within thirty (30) days after receipt of the notice. The terms of Section 11 and all other provisions of this Agreement that expressly survive such termination shall apply.
c. If the City fails to provide a Final Acceptance Notice or a Rejection Notice within five (5) calendar days after the end of the Test Period, then the City’s final acceptance of the Software shall be considered to have occurred and the City and Sun Ridge shall proceed as described in section 8.a above.
Section 9. Software License. Subject to the terms, conditions, limitations and restrictions set forth in this Agreement, Sun Ridge grants to the City a nonexclusive and nontransferable license, effective upon the City’s Final Acceptance of the Software pursuant to Section 8 above, to use the Software in connection with the City’s normal and customary daily operations substantially as they exist as of the date of commencement of the Term as described below (the “License”). The City shall acquire no ownership or other rights in or to the Software except for the License granted hereunder, and title to the Software shall at all times remain with Sun Ridge.
a. The following additional terms, conditions and limitations apply to the License:
i. The City may use the Software only for the agency that is the subject of this Agreement. The City shall not permit any other agency to use the Software unless it has first obtained explicit written agreement from Sun Ridge to do so; ii. The City may make a copy of the Software for backup or modification purposes only in support of the City’s authorized use of the Software hereunder as Sun Ridge has expressly authorized; and
iii. No one using the Software, and no one for whose benefit the Software is being used, shall sublicense, resell, distribute, market, provide or otherwise make available the Software or any part or copies thereof to any third party. iv. The City shall not transfer, use, or export the Software in violation of any applicable laws, rules, or regulations of any government or governmental agency. v. The City shall not use the Software to disrupt, disable, or otherwise harm the operations, software, hardware, equipment, and/or systems of a business, institution, or other entity, including, without limitation, exposing the business, institution, or other entity to any computer virus, trojan horse, or other harmful, disruptive, or unauthorized component.
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 4 vi. The City shall not embed the Software in any third-party applications, unless expressly permitted under this Agreement or otherwise authorized in writing in advance by an authorized officer of Sun Ridge.
vii. The License granted under this Agreement shall apply only to the object code for the Software. No one using the Software, and no one for whose benefit the Software is being used, shall have the right to use or have access to the source code for the Software, and neither the City nor anyone using the Software pursuant to this License will modify, change, merge, adapt, translate, reverse engineer, decompile, disassemble or prepare derivative works based upon the Software.
viii. The City acknowledges that the Software and the
Documentation constitute trade secrets of Sun Ridge. The City agrees to maintain the confidentiality of the Software and the Documentation, and shall take commercially reasonable steps to preserve that confidentiality pursuant to Section 12 of this Agreement. b. The term of the License shall commence upon Final Acceptance of the Software by the City, and shall continue until the License is terminated as provided below. i. Sun Ridge may immediately terminate the License in the event of any failure by the City to comply with the terms or conditions of this Agreement by giving written notice of such termination to the City in compliance with Section 11 of this Agreement. In the event the City has leased the Software from Sun Ridge, the License will terminate automatically upon termination of the lease. Upon such termination, the City shall immediately cease further use of the Software and will cause all copies of the Software to be destroyed or returned to Sun Ridge, and Sun Ridge shall refund to the City all amounts prepaid by the City for any period of the License commencing with the effective date of termination. ii. The City may terminate the License at any time by giving written notice thereof to Sun Ridge and by destroying or returning to Sun Ridge all copies of the Software. The City acknowledges and agrees that any election by the City to terminate the License hereunder will not entitle the City to any refund of amounts paid or compensation of any kind from Sun Ridge, except to the extent that the City terminates the License due to a breach of this Agreement by Sun Ridge.
iii. Upon any termination or expiration of the License, an authorized representative of the City shall certify in writing to Sun Ridge that all copies of the Software and the Documentation which were the subject of the License have either been destroyed or returned to Sun Ridge as required above.
iv. The provisions of Sections 7 and 10 through 13, inclusive, shall survive the expiration or termination of this Agreement. c. Sun Ridge may, at its option, release updates to or new versions of the Software. If the City elects to obtain any update or new version of the Software, the use of such update or new version will be subject to the terms and conditions of this Agreement. d. Except as expressly provided in this Agreement, Sun Ridge retains all intellectual property rights and other rights to the Software, Documentation (as defined below), and the source code for the Software.
Section 10. Data Ownership
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 5 a. Notwithstanding any other provision of this Agreement, all data created, stored, transmitted, processed, or maintained by the City using the Software, including but not limited to CAD data, RMS data, reports, attachments, audit logs, CJIS information, and associated metadata (“City Data”), shall remain the sole and exclusive property of the City. No ownership rights in City Data are transferred to Sun Ridge under this Agreement. b. Sun Ridge may access or use City Data solely for the purpose of performing services under this Agreement and for no other purpose unless expressly authorized in writing by the City.
c. Upon termination or expiration of this Agreement, Sun Ridge shall, upon request by the City, provide the City with a complete export of all City Data in a commercially reasonable electronic format.
Section 11. Indemnity and Insurance.
a. Sun Ridge agrees to indemnify, defend, and hold harmless the City and its officers, directors, shareholders, employees, and agents (the “City Indemnified Parties”) from any and all claims, demands, liabilities, and costs, including attorney’s fees (“Claims”), arising out of or relating to (i) any actual infringement of a third-party’s intellectual property rights or (ii) the negligence or willful misconduct of any employee or agent of Sun Ridge occurring during or as a result of Sun Ridge’s performance of its obligations hereunder, provided that Sun Ridge shall have no indemnity or other obligations to the City hereunder to the extent any such Claims arise from or are the result of the negligence or other fault of the City or its employees, agents or other contractors nor shall the foregoing indemnity and hold harmless obligations of Sun Ridge extend to or cover any Claims arising from or relating to claims of defects or errors in the Software or the City’s use or inability to use the Software. This indemnity obligation shall survive the expiration, cancellation or termination of this Agreement. Notwithstanding the foregoing, the City expressly waives, releases, and agrees that neither Sun Ridge nor Sun Ridge’s officers, directors, shareholders, employees, agents, or affiliates shall have liability for any lost business, incidental, special, or consequential damages arising out of or related to the use or implementation of the Software; provided, however, that this limitation shall not apply to claims arising from Sun Ridge’s gross negligence, willful misconduct, breach of confidentiality obligations, violation of applicable law, or failure to comply with applicable requirements. b. During the term of this Agreement, Sun Ridge shall comply with the following insurance requirements:
i. Workers’ Compensation. Sun Ridge shall fully comply with the terms of the law of California concerning workers’ compensation. Said compliance shall include, but not be limited to, maintaining in full force and effect one or more policies of insurance insuring against any liability Sun Ridge may have for workers’ compensation. Said policy shall also include employer’s liability coverage of $1,000,000 per accident for bodily injury or disease. ii. General Liability Insurance. Sun Ridge shall obtain at its sole cost and keep in full force and effect during the term of this Agreement commercial general liability insurance in the amount of $1,000,000 per occurrence for bodily injury, and property damage personal injury; coverage includes products and completed operations, Said insurance shall provide (1) that the City, its officers, and employees shall be included as additional insureds under the policy, and (2) that the policy shall operate as primary insurance, and non-contributory. iii. Automobile Liability Insurance. Sun Ridge shall obtain at its sole cost and keep in full force and effect during the term of this Agreement business automobile
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 6 liability insurance in the amount of $1,000,000 combined single limit per occurrence for bodily injury and property damage. Said insurance operate as primary insurance, and non-contributory. iv. Certificates of Insurance. Sun Ridge shall file with City upon the execution of this Agreement, certificates of insurance which shall provide that no cancellation, major change in coverage, expiration, or nonrenewal will be made during the term of this agreement, without thirty (30) days written notice to the City prior to the effective date of such cancellation, or change in coverage.
Section 12. Termination Rights. Either party may terminate this Agreement upon material breach of any of the terms of this Agreement by the other Party, after first giving the other party written notice of such breach and thirty (30) days to cure. If the breaching party does not cure the breach within the allotted time, the Agreement will be terminated. Upon Termination, each party will return, delete, or destroy any copies, whether tangible or electronic, of Confidential Information obtained from the other party pursuant to this Agreement, including but not limited to any Documentation and any Confidential Information stored on any equipment that may be returned, and certify to the other party in writing within five (5) business days of the termination date that it has done so.
Section 13. Confidential Information. “Confidential Information” means any and all confidential information of a party to this Agreement that is not generally known to or by members of the public, including but not limited to businesses that compete with such a party, including but not limited to the Software and the Documentation pertaining thereto. Confidential Information shall not include information that is now or becomes part of the public domain, is required by applicable law to be disclosed, was already known by the receiving party at the time of disclosure, is independently developed by the receiving party without any use of Confidential Information, or is lawfully obtained from a third party. Confidential Information also shall not include this Agreement nor any provision hereof. “Documentation” means those visually readable materials developed by or for Sun Ridge for use in connection with the Software, in either written or electronic form.
Each party agrees to protect the other party’s Confidential Information. Confidential Information will not be used or disclosed except as authorized by the providing party. Confidential Information will be disclosed to employees of the receiving party only on a “need to know” basis and only after such employees are informed of the confidential nature of the information and obligated to maintain confidentiality.
If a party or any party acting on its behalf is required to disclose by order of a court of competent jurisdiction, administrative agency or governmental body, or by subpoena, summons or other legal process, or by law, rule or regulation, or by applicable regulatory or professional standards to produce Confidential Information, that party shall promptly (and prior to such disclosure) notify the other party in writing of such demand or requirement whereupon the parties shall cooperate and take all reasonable acts (without cost or expense to the notifying party) to exhaust the legal avenues available to maintain the confidentiality of such Confidential Information, unless the party whose Confidential Information is at issue consents to the production and disclosure of such Confidential Information. In all events, only that portion of the Confidential Information specifically requested by the tribunal or person compelling such disclosure shall be provided and no interpretation or analysis of such data prepared for the purpose of such disclosure shall be disclosed unless approved the party whose Confidential Information is at issue or required by law.
Section 14. Security and CJIS Compliance. Sun Ridge acknowledges that the Software and Services provided under this Agreement may access, store, process, or transmit
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 7 Criminal Justice Information (CJI) and Criminal Justice Information Services (CJIS) data. Sun Ridge agrees to comply with all applicable FBI CJIS Security Policy requirements and California Department of Justice requirements.
Section 15. General Terms.
a. Governing Law and Venue. This Agreement will be construed by and enforced in accordance with the laws of the state of California. The venue for any action to interpret or enforce this Agreement shall be the Nevada County Superior Court. b. Arbitration. If a dispute arises from or related to this Agreement or the breach of this Agreement and if such dispute cannot be settled through direct discussions, the parties agree to first endeavor to settle the dispute in an amicable manner by mediation to be held in Sacramento, California, under the Commercial Mediation Rules of the American Arbitration Association before resorting to arbitration. Thereafter, any unresolved controversy or claim arising from or relating to this Agreement, or breach of this Agreement, shall be settled in arbitration to be held in Sacramento, California. The arbitration will be governed by the Commercial Arbitration Rules of the American Arbitration Association, and the parties shall be allowed discovery in accordance with the California Code of Civil Procedure. If Sun Ridge and the City cannot jointly select a single arbitrator to determine the matter, one arbitrator shall be chosen by each of Sun Ridge and the City (or, if a party fails to make a choice, by the American Arbitration Association on behalf of such party) and the two arbitrators so chosen will select one additional arbitrator.
The decision of the single arbitrator jointly selected by Sun Ridge and the City, or, if three arbitrators are selected, the decision of any two of them will be final and binding on the parties and the judgment of a court of competent jurisdiction may be entered on such decision. The prevailing party shall be entitled to recover reasonable fees and expenses resulting from any arbitration proceeding.
c. Severability. If any provision of this Agreement shall be held to be invalid, illegal, or unenforceable, such finding shall not affect the validity, legality, or enforceability of the remaining provisions.
d. Assignment. Parties may not transfer, assign, or sublicense this Agreement, any license hereunder, or any of its rights or duties hereunder to any other person, site or corporation without the prior written consent of the other party. Any attempted transfer, assignment, or sublicense made without prior written consent shall be completely void. e. Notice. Any notice requested or permitted to be given hereunder shall be sent prepaid, certified mail, return receipt requested, and shall be deemed to have been given on the third (3rd) business day after mailing to the other party as follows: to the City at the address indicated in the initial paragraph of this Agreement or to electronic mail address _____________________________________; to Sun Ridge Systems at P.O. Box 5071, El Dorado Hills, CA 95762, or electronic mail address [email protected]. Notices may be given by electronic mail transmission to such address as may be specified by the party for such purpose and shall be deemed to have been given when transmitted to such address with confirmation of a successful transmission.
f. Independent Contractors. The parties to this Agreement shall constitute independent contractors. Nothing in this Agreement shall be construed as establishing any employment, partnership, joint venture or similar arrangement between the parties, and no party has any authority to commit any other party to any obligation to any other person or entity, unless expressly agreed to in writing signed by such party.
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 8 g. Force Majeure. Sun Ridge shall not be responsible for interruption of, interference with, diminution of, or suspension of any of its products or services, including performance failure, which are caused by strike, lockout, riot, epidemics, war, government regulation, fire, flood, natural disaster, acts of God, utility failures, losses or injuries arising directly or indirectly from criminal acts, negligent acts of others, malfunctions or inadequacies of equipment or service not directly within the control of Sun Ridge. h. Authorization/Entire Agreement/Modification. This Agreement will be effective upon signing by the City and Sun Ridge. This Agreement is the complete and final Agreement of the parties relating to the subject of this Agreement and it replaces and supersedes any prior or contemporaneous oral or written understandings or agreements. No alteration or variation to the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto.
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 9 This Agreement has been executed by the parties hereto, from the date shown on the first page.
SUN RIDGE SYSTEMS, INC.
By:
__________________________________
Carol Gomes Jackson
Its: President
CITY OF GRASS VALLEY
By:
__________________________________
Alex Gammelgard
Its: Chief of Police
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 10 Exhibit A Scope of Work
Section 1 – Software Licenses
The City has purchased the following software licenses:
• RIMS Computer Aided Dispatch Software
• RIMS Records Management Software
• RIMS Mobile Computer and Mobile Mapping Software
• iRIMS Law Mobile App Software
• RIMS In-Station Mapping Software
• RIMS Property Room Bar Coding Software
• RIMS Text Paging Link Software
• RIMS Citizen RIMS Public Access Software
• RIMS Collaborate Data Sharing Software
• RIMS Officer Training Management (TIMS) Software
The City has purchased the following RIMS interface software:
• RIMS E911 Link
• RIMS State Link Software
• RIMS DA Link to Karpel Software
• RIMS Body Worn Camera Link to AXON Software
• RIMS AutoCite Import Link Software
• RIMS CHP 555 Export Link to SWITRS Software
• RIMS Flock Vehicle Alert Integration Software
Section 2 - Project Schedule
Upon execution of the Agreement, Sun Ridge and the City, in conjunction with the Nevada County Sheriff’s Office, shall define a mutually agreed on project schedule.
Section 3 – Hardware/Equipment
Sun Ridge is providing one (1) Worth Data Bar Code Scanner Section 4 – Third-Party Software
Sun Ridge is providing no Third-Party software.
Section 5 - Installation
Sun Ridge will install all Sun Ridge provided Software on Nevada County Sheriff’s Office provided servers and will provide instruction to the City staff on how to install the client workstation Software and Mobile/App Software. The City’s workstations (including desktop and laptop computers as well as Android and/or iOS devices) shall meet the minimum specifications set forth in Section
11. Access to the City computers/workstations shall be via unattended remote access using a product called Bomgar by Beyond Trust, provided by Sun Ridge. As part of installation, Sun Ridge shall set up a basic system backup process of City databases to local disks on the NCSO servers.
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 11 Section 6 – Configuration
Sun Ridge will provide the following sessions for the City’s designated RIMS Administrators.
These sessions must be conducted in coordination with the other participating agencies.
RIMS Configuration and Setup: Consists of up to 16 hours for RMS configuration instruction to be conducted via phone and/or remote access. The City’s “RIMS Administrators” will be instructed on how to configure RIMS to most closely meet the desired operational procedures of the City. In some cases, the RIMS Administrators may find that modifying existing procedures may be desired in order to take full advantage of RIMS functionality. Discussions will include:
• Customization of drop-down menu choices for 200+ fields • The City’s records management operational decisions
• Paper flow vs paperless vs less paper for records
• Selection of case format type
• Review of data conversion processes and implementation, including reviewing data and starting data translations if converted data is available at the time the session is scheduled
Section 7 - Map Engineering Services
Sun Ridge will provide map engineering services assuming an ESRI-based map source. This process involves the City supplying an ERSI street centerline file (and layers) to Sun Ridge so that Sun Ridge can build maps for use by the RIMS mapping software products.
Section 8 - Integration
Sun Ridge will provide RIMS sided interfaces for all third-party software applications listed in Section 1 above. The City must coordinate with third-party vendors to complete and test their portion of the interface.
Section 9 – Training
Sun Ridge is providing “end user” training all of which will be conducted on-site at a City provided location(s). Training days are contiguous, including weekends. Class times are 0800 to no later than 1700. Sun Ridge will provide a training plan at least 30 days prior to the first training session, generally following the parameters and total number of classes set forth in the following chart but with the specifics mutually agreed upon by the Parties.
Sun Ridge will provide course materials/handouts in electronic format in advance of the training.
A “session” is a repeat of the same class/material.
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 12 End User Training
Subject
Sessions
Offered
Days Per
Session
Total
Days Class Size
CAD Overview 1 1 1
No more than 2 students
per workstation/10
students per session max
Officer/Mobile
Training 3 2 6
No more than 2 students
per workstation/20
students per session max
Records 1 1 1
1 student per workstation
(also must attend Day 1
of Officer Training)
Property Room
Training 1 1 1
1 student per workstation
(also must attend Day 1
of Officer Training)
TIMS 1 1 1
1 student per workstation
(also must attend Day 1
of Officer Training)
RIMS Admin
Review 1 1 1 TBD
Post Go Live
Review 1 1 1 TBD (Remote)
Post Go Live
Refresher 1 1 1 TBD (Remote)
Section 10 - Go Live Support
One (1) Sun Ridge staff will be on site on the day of and the day after go live. Staff will be on site to answer questions and to address any system problems.
Section 11 - The City’s Responsibilities
The City is responsible for the following:
• Installation of all remaining client workstations
• Installation of all remaining mobile computers
• Installation of all remaining smartphone/tablet devices • Coordinate and schedule resources of the City to include IT staff • Identify RIMS Administrators
• Provide data communications infrastructure (network, wireless, internet, intranet) and high speed connectivity to the RIMS servers at the Nevada County Sheriff’s Office. • Coordinate testing of the State Message Switch
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 13 • Contact third party vendors, and any other required third-parties, and coordinate their schedules and costs they may charge the City to provide, install and test their portion of the interface to RIMS.
• Provide initial map source file
• Ensure all user-maintained configuration and data validation tables are completed prior to the start of training
• Provide training facilities and workstations (meeting minimum workstations requirements) and ensure access to RIMS training database from the training location(s)
• Training facilities must meet current Federal, State and local guidelines for health and safety, including those that may affect class size and physical configuration • Make paper copies of class materials and handouts provided by Sun Ridge • Schedule the City’s staff into requisite classes
• Assume any costs for staff overtime or other expenses incurred to support training schedule
• The City will allow unattended remote access (during implementation) to Sun Ridge allowing the use of Bomgar by BeyondTrust remote access software so that Sun Ridge may meet its responsibilities under this Agreement • The City will provide the following hardware meeting the following minimum specifications:
• Servers: A file server at the City’s location may be required. • Monitor Resolution: 1920 x 1080 for all devices
• Desktop Workstations
Existing Computers:
• Microsoft Windows 11
• 2+ Ghz CPU / i5+
• 8GB RAM
• Any Size Disk Space
New Computers:
• Microsoft Windows 11+
• i7/i9 CPUs
• 16GB RAM
• Any Size Disk Space
• Mobile Computer Specifications: RIMS Mobile Computer Software/OFR Software and RIMS Mobile Mapping run on Windows laptops or Windows tablets per the following minimum specifications:
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 14 • Recommended Specifications (If purchasing new Laptops/Tablets) Laptops / Tablets
Microsoft Windows 10+
i7/i9 Processor
16 GB+ RAM
Any Size Disk Space
Optional features for Mobile RIMS: include support for touchscreens, locally connected GPS devices (COM-port Serial or network connection to the modem), NFC readers for YubiKeys (MFA), and Driver’s License barcode scanning using enabled Getac tablets or DL scanners (Com-port Serial – AAMVA format – purchased separately by the City).
• Phone and Tablet Devices: The City must provide connectivity from the phone or tablet via the internet to the NCSO to reach the Application Server. The City must also provide a secure method to reach the Application Server, which can be done in various ways. Most agencies choose to use an agency-provided Virtual Private Network (VPN) or Net-Motion-type product that these devices support. Supported Devices Include:
• FBI CJIS Requirements: All workstations must comply with FBI CJIS policies, including Multi-Factor Authentication (MFA). MFA can be provided within the Sun Ridge Systems products, or the City can use its own solution. Sun Ridge only offers these two MFA possession solutions: Time-Based One-Time Password (TOTP) Authenticator and physical YubiKeys (purchased by the City). For mobile devices using Mobile RIMS or iRIMS, a Mobile Data Management (MDM) software product may be required, which Sun Ridge does not provide nor sell. The City is responsible for other FBI CJIS requirements, including virus protection, local firewalls, and VPNs. • Bar Coding - Purchase a minimum of one (1) DYMO LabelWriter 550 Turbo Label Printer and minimum one (1) month supply of Dymo Labels # 30256 for Property Room.
Android Devices iOS Devices
Android v13+ iOS v16+
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 15 Exhibit B – Contract Amount
Item Price
RIMS Computer-Aided Dispatch (CAD) Software $31,000
RIMS Records Management System (RMS) Software $46,200
RIMS Mobile Computer and Mobile Mapping Software $28,000 iRIMS Law iOS/Android App Software $11,000
RIMS In Station Mapping Software $11,480
RIMS Property Room Bar Coding Software $13,000
RIMS Citizen RIMS Public Access Software $6,000
RIMS E911 Link Software $6,560
RIMS State Link Software (CLETS) $7,380
RIMS Text Paging Link Software $2,460
RIMS Collaborate Data Sharing Software $7,000
RIMS Officer Training Management Software $5,000
RIMS DA Link to Karpel Software $4,000
RIMS Body Camera to AXON Link Software $2,000
RIMS AutoCite Link Software $2,000
RIMS CHP 555 Export to SWITRS Link Software $5,000
RIMS to Flock Vehicle Alert Integration Software $4,000 Mapping Data Engineering Services $2,500
Worth Data Bar Coding Equipment $1,700
Installation and Training $93,896
Annual Support and Updates - First Year* $28,812
California Sales Tax $153
CONTRACT AMOUNT $319,141
* Support and Updates renew annually as described in Exhibit C. Annual support and maintenance fee increases after the initial support term shall not exceed five percent (5%) annually for Years 2 through 5. Any increase in excess of five percent (5%) must be mutually agreed to in writing by both parties. The addition by the City of new Software products during this period does not count towards the annual percentage increase.
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 16 Exhibit C – Support Services Agreement
This is a description of the software support, maintenance, and update/upgrade services to be provided by Sun Ridge Systems, Inc. (“SRS”) to the City of Grass Valley (“Licensee”) as part of a Software Support Services Agreement (“Agreement”). This Agreement covers all RIMS public safety software (Software) licensed by the Licensee and is effective on the date of system cutover of the first RIMS product in production use.
Under this agreement SRS agrees to provide the following services to Licensee:
1. Coverage Hours. SRS will provide a toll-free phone number and dedicated email address for support purposes during normal service hours. Normal service hours are defined as MondayFriday, 8AM-5PM PST, except for New Year’s Day, Martin Luther King Day, Presidents Day, Memorial Day, July 4th, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, and Christmas Day (“common holidays”).
However, for instances where the Licensee’s system is completely inoperable due to an SRS software problem (“critical problems”) preventing basic system operation, service will be available 24 hours, 7 days a week, common holidays included. Examples of critical problems include:
- RIMS is down/not responding on multiple workstations
- Cannot create a call for service (CAD Incident)
- Cannot issue a case number
- Unable to access NCIC
- Other issues that will not allow the user to complete critical tasks Licensee will have taken reasonable measures prior to contacting SRS support during nonservice hours including:
- Verified that the issue is not related to just 1 workstation - Restarted the workstation in question
- Contacted in-house IT support if the issue is related to network or server errors - Verified the issue is critical enough that it cannot wait until normal support hours
2. SRS Response to reported problems. SRS agrees to provide service and assistance as expeditiously as possible as follows:
a. Most problems will be resolved with the initial phone call or email.
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Sun Ridge Systems, Inc. Contract for Grass Valley Page 17 b. For problems that cannot be immediately resolved, SRS will work to resolve the problem based on the severity of the problem and the urgency reported by Licensee. ● For critical problems, SRS personnel will work with Licensee until the situation is resolved. ● For problems that are not critical problems that have a lesser though continuing impact on operations of Licensee SRS will endeavor to provide a solution or workaround within 72 hours of the problem being reported to SRS by the Licensee. ● For other problems SRS may, at its discretion, either issue a near term "fix release" of the product or include the fix in the next scheduled product update.
3. Licensee equipment and software responsibilities. Licensee agrees to allow SRS to remotely connect to Licensee’s system when a problem is reported. SRS uses BeyondTrust remote access software for secure installation and follow-on support services. BeyondTrust software provides superior security and does so over an ordinary internet connection via an SRS server that hosts a BeyondTrust security hardware device.
If Licensee does not allow unattended access, the SRS response to a service request may be delayed until a responsible party of the Licensee allows access. Once remote access is obtained, SRS will examine data files, investigate reported problems, and provide updates and corrections as necessary.
4. Provision of software updates. SRS will provide all new enhanced and updated versions of software licensed to Licensee at no additional cost. This software will be provided with detailed installation instructions for installation by Licensee. If desired, Licensee may retain SRS to perform any installation at additional cost to be determined on a per case basis. Updates are distributed via download from the SRS ftp web site. SRS will not be obligated to provide service for release versions that are more than two annual release versions older than the current release.
5. Term. The term of the support period shall be one year from the date of system cutover and shall be annually renewed for another year upon payment of invoice. Payment for subsequent years is due in advance of the day the services begin. Non-payment of the support invoice within 60 days shall be cause for terminating or suspending support services at the discretion of SRS. 6 Termination. Licensee may terminate this Agreement with or without cause upon ninety (90) days written notice to SRS. If terminated, Licensee is entitled to a prorated refund for the service days not consumed beginning on the last day of the month the written notice is received by SRS to the end of the remaining term of the Agreement.
7. Limitations. SRS agrees to provide support only for public safety application software provided by SRS. Other software used by Licensee (word processing, spreadsheet, etc.) is not included in this Agreement. PC and network operating system software and Microsoft SQL Server database system software is similarly not included, although SRS may assist Licensee in isolating problems to this software. (SRS reserves the right to charge for diagnostic services in the event it is
Item # 5.
Sun Ridge Systems, Inc. Contract for Grass Valley Page 18 determined that the reported issue is not attributable to RIMS.) Also specifically excluded is responsibility for administration, support, or maintenance of Licensee’server, computer network, operating systems, or database (Microsoft SQL Server).
Licensee may request that SRS provide support services outside the limitations of this Support Services Agreement. If SRS agrees to provide any requested additional support services, such support services will be provided at SRS’s then current rate and under terms and conditions that SRS may require.
This Agreement does not include equipment maintenance or assistance in diagnosing hardware problems including but not limited to PCs, printers, network, scanners, and other computer peripheral devices with the exception that SRS will assist Licensee in determining whether a problem is attributable to RIMS.
Item # 5.
City of Grass Valley
City Council
Agenda Action Sheet
Title: Direction to file annual reports for Landscaping and Lighting Districts (LLD) and Benefit Assessment Districts (BAD) for Fiscal Year 2026-27 Recommendation: It is recommended that the City Council adopt five Resolutions (2026-16, 2026-17, 2026-18, 2026-19, and 2026-20) directing the filing of the annual reports for Landscaping and Lighting Districts (LLD) – Annual Assessments for Fiscal Year 2026-27 and Benefit Assessment Districts (BAD) – Annual Assessments for Fiscal Year 2026-27.
Prepared by: Jennifer Styczynski, Finance Director
Council Meeting Date: 05/26/2026 Date Prepared: 05/19/2026 Agenda: Consent
Discussion: To continue funding the maintenance of improvements within the City’s Landscaping and Lighting Districts and Benefit Assessment Districts, an annual assessment must be levied and submitted to the Nevada County Tax Roll. The revenues from the Landscaping and Lighting District assessments support the maintenance of landscaping, related structures, landscape utilities, street lighting, and administrative costs within each district. The revenues from the Benefit Assessment District assessments cover storm drain maintenance and administrative costs within their respective districts.
Directing the City Engineer to prepare the annual reports is the first step in the process of placing these assessments on the tax roll.
Council Goals/Objectives: The Landscape and Lighting Districts and Benefit Assessment Districts annual assessments supports the Strategic Plan – City Infrastructure Investment by covering costs for community-specific structures and services.
Fiscal Impact: To be determined once the reports are completed.
Funds Available: N/A Account #: N/A
Reviewed by: City Manager
Attachments: Resolutions (5)
Item # 6.
RESOLUTION NO. 2026 - 16
RESOLUTION DIRECTING FILING OF ANNUAL REPORT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 ASSESSMENT DISTRICT NO. 1988-2
(RESIDENTIAL LANDSCAPING AND LIGHTING DISTRICT – MORGAN RANCH, VENTANA SIERRA,
SCOTIA PINES, MORGAN RANCH WEST, RIDGE MEADOWS, AND LOMA RICA RANCH) WHEREAS, the City Council of the City of Grass Valley, pursuant to the Landscaping and Lighting Act of 1972, has previously formed Assessment District No. 1988-2; and WHEREAS, Section 22622 of the Streets and Highways Code requires the City Council to direct the preparation and filing of the annual Engineer's Report for said district.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grass Valley as follows:
1. Designation of Engineer of Work. Bjorn Jones, P.E., the person designated by this Council as the Engineer of Work for Assessment District No. 1988-2, is hereby directed to prepare and file the annual Engineer’s Report for Fiscal Year 2026-27, in accordance with the provisions of the Landscaping and Lighting Act of 1972.
2. Authority. This Resolution is adopted pursuant to Section 22622 of the Streets and Highways Code.
ADOPTED as a Resolution of the City Council of the City of Grass Valley at a regular meeting held on the 26th day of May, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINING:
______________________________
Hilary Hodge, Mayor
ATTEST:
______________________________
Taylor Whittingslow, City Clerk
APPROVED AS TO FORM:
______________________________
David Ruderman, City Attorney
Item # 6.
RESOLUTION NO. 2026 - 17
RESOLUTION DIRECTING FILING OF ANNUAL REPORT PURSUANT TO THE BENEFIT ASSESSMENT ACT OF 1982 ASSESSMENT DISTRICT NO. 2010-1
(MORGAN RANCH WEST)
WHEREAS, the City Council of the City of Grass Valley has previously formed Benefit Assessment District No. 2010-1 (Morgan Ranch West) pursuant to the Benefit Assessment Act of 1982 (commencing with Section 54703 of the California Government Code; hereinafter referred to as the "1982 Act"); and WHEREAS, the 1982 Act requires the preparation and filing of an annual Engineer’s Report in connection with the levy of assessments for said district.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grass Valley as follows:
1. Designation of Engineer of Work. Bjorn Jones, P.E., the person designated by this Council as the Engineer of Work for Benefit Assessment District No. 2010-1 (Morgan Ranch West), is hereby directed to prepare and file the annual Engineer’s Report for Fiscal Year 2026-27 in accordance with the provisions of the Benefit Assessment Act of 1982.
ADOPTED as a Resolution of the City Council of the City of Grass Valley at a regular meeting held on the 26th day of May, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINING:
______________________________
Hilary Hodge, Mayor
ATTEST:
______________________________
Taylor Whittingslow, City Clerk
APPROVED AS TO FORM:
______________________________
David Ruderman, City Attorney
Item # 6.
RESOLUTION NO. 2026 - 18
RESOLUTION DIRECTING FILING OF ANNUAL REPORT PURSUANT TO THE BENEFIT ASSESSMENT ACT OF 1982 ASSESSMENT DISTRICT NO. 2003-1
(MORGAN RANCH UNIT 7)
WHEREAS, the City Council of the City of Grass Valley has previously formed Benefit Assessment District No. 2003-1 (Morgan Ranch Unit 7) pursuant to the Benefit Assessment Act of 1982 (commencing with Section 54703 of the California Government Code; hereinafter referred to as the "1982 Act"); and WHEREAS, the 1982 Act requires the preparation and filing of an annual Engineer’s Report in connection with the levy of assessments for said district.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grass Valley as follows:
1. Designation of Engineer of Work. Bjorn Jones, P.E., the person designated by this Council as the Engineer of Work for Benefit Assessment District No. 2003-1 (Morgan Ranch Unit 7), is hereby directed to prepare and file the annual Engineer’s Report for Fiscal Year 2026-27 in accordance with the provisions of the Benefit Assessment Act of 1982.
ADOPTED as a Resolution of the City Council of the City of Grass Valley at a regular meeting held on the 26th day of May, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINING:
______________________________
Hilary Hodge, Mayor
ATTEST:
______________________________
Taylor Whittingslow, City Clerk
APPROVED AS TO FORM:
______________________________
David Ruderman, City Attorney
Item # 6.
RESOLUTION NO. 2026 - 19
RESOLUTION DIRECTING FILING OF ANNUAL REPORT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 ASSESSMENT DISTRICT NO. 1988-1
(COMMERCIAL LANDSCAPING AND LIGHTING DISTRICT – WHISPERING PINES AND
LITTON BUSINESS PARK)
WHEREAS, the City Council of the City of Grass Valley, pursuant to the Landscaping and Lighting Act of 1972, has previously formed Assessment District No. 1988-1; and WHEREAS, Section 22622 of the Streets and Highways Code requires the City Council to direct the preparation and filing of the annual Engineer's Report for said district.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grass Valley as follows:
1. Designation of Engineer of Work. Bjorn Jones, P.E., the person designated by this Council as the Engineer of Work for Assessment District No. 1988-1, is hereby directed to prepare and file the annual Engineer’s Report for Fiscal Year 2026-27, in accordance with the provisions of the Landscaping and Lighting Act of 1972.
2. Authority. This Resolution is adopted pursuant to Section 22622 of the Streets and Highways Code.
ADOPTED as a Resolution of the City Council of the City of Grass Valley at a regular meeting held on the 26th day of May, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINING:
______________________________
Hilary Hodge, Mayor
ATTEST:
______________________________
Taylor Whittingslow, City Clerk
APPROVED AS TO FORM:
______________________________
David Ruderman, City Attorney
Item # 6.
RESOLUTION NO. 2026 - 20
RESOLUTION DIRECTING FILING OF ANNUAL REPORT PURSUANT TO THE BENEFIT ASSESSMENT ACT OF 1982 ASSESSMENT DISTRICT NO. 2016-1
(RIDGE MEADOWS)
WHEREAS, the City Council of the City of Grass Valley has previously formed Benefit Assessment District No. 2016-1 (Ridge Meadows) pursuant to the Benefit Assessment Act of 1982 (commencing with Section 54703 of the California Government Code; hereinafter referred to as the "1982 Act"); and WHEREAS, the 1982 Act requires the preparation and filing of an annual Engineer’s Report in connection with the levy of assessments for said district.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grass Valley as follows:
1. Designation of Engineer of Work. Bjorn Jones, P.E., the person designated by this Council as the Engineer of Work for Benefit Assessment District No. 2016-1 (Ridge Meadows), is hereby directed to prepare and file the annual Engineer’s Report for Fiscal Year 2026-27 in accordance with the provisions of the Benefit Assessment Act of 1982.
ADOPTED as a Resolution of the City Council of the City of Grass Valley at a regular meeting held on the 26th day of May, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINING:
______________________________
Hilary Hodge, Mayor
ATTEST:
______________________________
Taylor Whittingslow, City Clerk
APPROVED AS TO FORM:
______________________________
David Ruderman, City Attorney
Item # 6.
City of Grass Valley
City Council
Agenda Action Sheet
Title: HOME investment Partnership (HOME) Application to the State of California CEQA: Not a project
Recommendation: Approve Resolution 2026-22 authorizing the submittal of an application to the State of California Department of Housing and Community Development (HCD) for HOME Program Income funds to be used for the City’s FirstTime Homebuyer Assistance Program Prepared by: Taylor Whittingslow, Deputy City Manager
Council Meeting Date: 05/26/2026 Date Prepared: 05/20/2026 Agenda: Consent
Background Information: Staff requests authorization to submit an application to expend their HOME Program Income (HOME PI) funds for the City’s First-Time Homebuyer Assistance Program (FTHB Program) for $892,615. This FTHB Program is used to facilitate eligible low-income households in the purchase of their first home.
The FTHB Program has been in operation since 1998 and has issued 65 loans to firsttime homebuyers. The FTHB Program was placed on hold state-wide by HCD in 2022 to update guidelines for compliance with state and federal regulations, including incorporating recapture terms and new subsidy calculations. As such, the City has accrued $892,615 in HOME PI that they have been unable to expend. In April 2026, HCD approved the City’s new guidelines to begin administering their FTHB Program again.
The State HOME Program also now requires cities to submit an application to access their HOME PI cash on hand.
Discussion: In response to the most recent version of the 2024 HOME NOFA dated January 21, 2026, Staff is proposing Council authorize an application in the amount of $892,615 for a HOME PI-Only FTHB Program.
The parameters of the FTHB Program remain the same, which allows a maximum loan amount of $75,000 for down payment assistance and closing costs. The terms are 2% deferred for 30 years. The City’s HOME PI amount includes $839,000 in loan funds and $53,615 in administration funds. It is anticipated that at least 11 participants will be assisted.
Item # 7.
Recommended Action: Adopt a resolution authorizing the submittal of a HOME PI-Only application from the City of Grass Valley for $892,615 in HOME Investment Partnerships Program funds for the deployment of a First-Time Homebuyer Program and authorize the Mayor to execute the standard agreement, any amendments thereto, and any related documents necessary, and authorize the corresponding budget amendments if awarded the grant.
Council Goals/Objectives: Goal 1; Objective 1.A.1. Promote programs that improve livability; Develop quality of life housing opportunities Fiscal Impact: No fiscal impact to the City. All costs to administer the program and process any loans are covered by the City’s HOME PI funds Funds Available: N/A Account #: 233-304
Reviewed by: Interim City Manager
Attachments:
Resolution 2026-22
Nevada County HOME 2026 Income Limits
HOME FTHB Program Guidelines
HOME 2024 NOFA
Item # 7.
RESOLUTION NO. 2026-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRASS
VALLEY AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO
THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT
PARTNERSHIPS PROGRAM (HOME); AND IF SELECTED, THE
EXECUTION OF A STANDARD AGREEMENT, ANY AMENDMENTS
THERETO, AND OF ANY RELATED DOCUMENTS NECESSARY TO
PARTICIPATE IN THE HOME PROGRAM.
WHEREAS, The California Department of Housing and Community Development (the “Department”) is authorized to allocate HOME Investment Partnerships Program (“HOME”) funds made available from the U.S. Department of Housing and Urban Development (“HUD”). HOME funds are to be used for the purposes set forth in Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, in federal implementing regulations set forth in Title 24 of the Code of Federal Regulations, part 92, and in Title 25 of the California Code of Regulations commencing with section 8200.
WHEREAS, On January 29, 2026, the Department authorizes the use of HOME Program funds specifically derived from Program Income.
WHEREAS, In response to the PROGRAM INCOME, The City of Grass Valley, a municipality (the “Applicant”), wishes to apply to the Department for, and receive an allocation of, HOME funds.
NOW, THEREFORE BE IT RESOLVED by the City Council that:
1. In response to the above referenced HOME Program Income, the Applicant shall submit an application to the Department to participate in the HOME Program Income and request up to Eight-Hundred Thirty-Nine Thousand ($839,000) of current funds, along with any additional future program income, to support the following activities and programs:
$839,000 for downpayment/closing costs loan funds to assist low-income First Time Homebuyers with purchasing homes, to be located in the Grass Valley city limits.
2. If the Application for funding is approved, then the Applicant hereby agrees to use the HOME funds for eligible activities in the manner presented in its Application as approved by the Department in accordance with the statutes and regulations cited above. The Applicant will also execute a Standard Agreement with the Department, any amendments thereto, and any and all other documents or instruments necessary or required by the Department or HUD for participation in the HOME program.
3. The Applicant hereby authorizes and directs the Mayor to execute, in the name of the Applicant, the HOME Standard Agreement, other HOME-related contracts and conveyances, and any subsequent amendments thereto.
Item # 7.
4. The Applicant hereby authorizes the City Manager, or the Deputy City Manager, and/or their designee(s), to execute, in the name of the Applicant, drawdown requests and any other HOME Program form requiring a signature, as may be required by the Department from time to time.
PASSED AND ADOPTED as a Resolution of the City Council of the City of Grass Valley at a meeting thereof held on the 26th of May 2026 by the following vote:
AYES:
AYES:
ABSENT:
ABSTAINING:
Hilary Hodge, Mayor
ATTEST:
Taylor Whittingslow, City Clerk
APPROVED AS TO LEGAL FORM:
David Ruderman, City Attorney
CERTIFICATION OF ATTESTING OFFICER
The undersigned City Clerk of the City of Grass Valley does hereby attest and certify that the foregoing is a true and full copy of a Resolution of the governing board of the City of Grass Valley passed and adopted at a duly convened meeting on the date set forth above, and said Resolution has not been altered, amended, or repealed and is in full force and effect.
Taylor Whittingslow, City Clerk Date
Item # 7.
U.S. DEPARTMENT OF HUD
STATE:CALIFORNIA --------------------- FY2026 ADJUSTED HOME INCOME LIMITS ---------------------
PROGRAM 1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON
Mariposa County, CA
30% LIMITS 20450 23350 26250 29150 31500 33850 36150 38500 VERY LOW INCOME 34000 38850 43700 48550 52450 56350 60250 64100 60% LIMITS 40800 46620 52440 58260 62940 67620 72300 76920 LOW INCOME 54400 62200 69950 77700 83950 90150 96350 102600
Mendocino County, CA
30% LIMITS 21000 24000 27000 29950 32350 34750 37150 39550 VERY LOW INCOME 34950 39950 44950 49900 53900 57900 61900 65900 60% LIMITS 41940 47940 53940 59880 64680 69480 74280 79080 LOW INCOME 55900 63900 71900 79850 86250 92650 99050 105450
Modoc County, CA
30% LIMITS 20450 23350 26250 29150 31500 33850 36150 38500 VERY LOW INCOME 34000 38850 43700 48550 52450 56350 60250 64100 60% LIMITS 40800 46620 52440 58260 62940 67620 72300 76920 LOW INCOME 54400 62200 69950 77700 83950 90150 96350 102600
Mono County, CA
30% LIMITS 23600 27000 30350 33700 36400 39100 41800 44500 VERY LOW INCOME 39250 44900 50450 56150 60600 65100 69600 74050 60% LIMITS 47100 53880 60540 67380 72720 78120 83520 88860 LOW INCOME 62900 71900 80900 89850 97050 104250 111450 118600
Nevada County, CA
30% LIMITS 26300 30050 33800 37550 40600 43600 46600 49600 VERY LOW INCOME 43800 50050 56300 62550 67550 72600 77600 82600 60% LIMITS 52560 60060 67560 75060 81060 87120 93120 99120 LOW INCOME 70050 80050 90050 100100 108100 116150 124100 132150
Plumas County, CA
30% LIMITS 20450 23350 26250 29150 31500 33850 36150 38500 VERY LOW INCOME 34000 38850 43700 48550 52450 56350 60250 64100 60% LIMITS 40800 46620 52440 58260 62940 67620 72300 76920 LOW INCOME 54400 62200 69950 77700 83950 90150 96350 102600
Sierra County, CA
30% LIMITS 20450 23350 26250 29150 31500 33850 36150 38500 VERY LOW INCOME 34000 38850 43700 48550 52450 56350 60250 64100 60% LIMITS 40800 46620 52440 58260 62940 67620 72300 76920 LOW INCOME 54400 62200 69950 77700 83950 90150 96350 102600
Siskiyou County, CA
30% LIMITS 20450 23350 26250 29150 31500 33850 36150 38500 VERY LOW INCOME 34000 38850 43700 48550 52450 56350 60250 64100 60% LIMITS 40800 46620 52440 58260 62940 67620 72300 76920 LOW INCOME 54400 62200 69950 77700 83950 90150 96350 102600
Effective: June 1, 2026 Page 6 of 7
Item # 7.
City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 1 City of Grass
Valley
HOME Investment
Partnerships Program
(HOME)
First-Time Homebuyer
Program Guidelines
Serving the Grass Valley
Item # 7.
City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 2
FIRST-TIME HOMEBUYER PROGRAM GUIDELINES
Table of Contents
1.0. GENERAL
1.1. PROGRAM OUTREACH AND MARKETING
1.2. APPLICATION PROCESS AND SELECTION
1.3. THE HOME PURCHASE PROCESS
1.4. HOMEBUYER COSTS
1.5. HOMEBUYER EDUCATION
1.6. CONFLICT OF INTEREST REQUIREMENTS
1.7. NON-DISCRIMINATION REQUIREMENTS
2.0. APPLICANT QUALIFICATIONS
2.1. CURRENT INCOME LIMITS
2.2. INCOME QUALIFICATION CRITERIA
2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER
3.0. HOUSING UNIT ELIGIBILITY
3.1. LOCATION AND CHARACTERISTICS
3.2. CONDITIONS
3.3 ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE
3.4. PROPER NOTIFICATION AND DISCLOSURES
4.0. PURCHASE PRICE LIMITS
5.0. THE PRIMARY LOAN
A. QUALIFYING RATIOS
B. INTEREST RATE
C. LOAN TERM
D. IMPOUND ACCOUNT
6.0. THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
B. NON-RECURRING CLOSING COSTS
C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
D. RATES AND TERMS FOR PROGRAM LOANS
E. LOAN-TO-VALUE RATIO
7.0. PROGRAM LOAN REPAYMENT
7.1. PAYMENTS ARE VOLUNTARY
7.2. RECEIVING LOAN REPAYMENTS
7.3. DUE UPON SALE OR TRANSFER
7.4. LOAN SERVICING POLICIES AND PROCEDURES
7.5. LOAN MONITORING PROCEDURES
8.0. PROGRAM LOAN UNDERWRITING AND APPROVAL
8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN
8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
8.3. ESCROW PROCEDURES
9.0. SUBORDINATE FINANCING
10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES
10.1. DEFINITION OF EXCEPTION
10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
Item # 7.
City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 3
TABLE OF CONTENTS (CONTINUED)
ATTACHMENTS
ATTACHMENT A: INCOME INCLUSIONS AND EXCLUSIONS
ATTACHMENT B: ASSET INCLUSIONS AND EXCLUSIONS
ATTACHMENT C: MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMITS; HOME MAXIMUM PERUNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS ATTACHMENT D: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT E: SELLER'S LEAD-BASED PAINT DISCLOSURE
ATTACHMENT F: DISCLOSURE TO SELLER WITH VOLUNTARY, ARM'S-LENGTH
PURCHASE OFFER
ATTACHMENT G: INSTRUCTIONS TO HOMEBUYER
ATTACHMENT H: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD REDUCTION FORM
ATTACHMENT I: HOMEBUYER PROGRAM LEAD COMPLIANCE DOCUMENT CHECKLIST
Item # 7.
City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 4
CITY OF GRASS VALLEY
HOME PROGRAM FIRST-TIME HOMEBUYER PROGRAM GUIDELINES
1.0. GENERAL
The above-named entity, hereinafter referred to as the “Sponsor” or “Lender,” has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer a HOME First-Time Homebuyer program. The homebuyer program described herein (the “Program”) is designed to assist eligible homebuyers in purchasing homes, also referred to herein as “housing units”, located within the Program’s eligible area, as described in Section 3.1.A. The Program provides this assistance in the form of a 30+ year deferred payment “silent” junior priority loan as “Gap” financing toward the purchase price and closing costs of an affordable housing unit that will be occupied by the homebuyers as their primary residence during the HOME Affordability Period. The Program will be administered by the City of Grass Valley (the “Program Operator”).
1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be done in accordance with state and federal fair lending regulations to ensure nondiscriminatory treatment, outreach, and access to the Program.
No person shall, on the grounds of race, color, ancestry, national origin, citizenship, immigration status, primary language, religion, disability (mental or physical), sex and gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial status (families with children under 18 or people who are pregnant), source of income, military or veteran status, or age be excluded, denied benefits, or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with disabilities, have access to the Program and will take steps to ensure effective communication with and marketing to applicants, residents, and members of the public with disabilities.
A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials. Affirmative marketing efforts will be based upon a comparison (census data will be used) of the Program’s eligible area compared to the demographic characteristics of the population served by the Program. This includes tracking separately all applications, including subsets for those which result in denial of assistance or withdrawal, and for those which result in assistance), and an explanation and analysis of any underserved segments of the population. This information is used to show that protected classes (listed above) are not being intentionally or unintentionally excluded from the Program. Flyers or other outreach materials, in English and any other languages that are the primary languages of a significant portion of the area’s residents, in accordance with Sponsor’s Limited English Proficiency (LEP) Plan, or equivalent, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The Program may sponsor homebuyer seminars to help
Item # 7.
City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 5 educate homebuyers about the homebuying process and future responsibilities.
B. The Program Operator will market the Program to local real estate agents and primary lenders to explain the Program requirements for eligible housing units and homebuyers, and to review Program processes. Local real estate agents and primary lenders will also be invited to have their customers participate in the Program.
C. The following statement will be included in all outreach and marketing materials:
Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds.
D. The Sponsor will ensure that all Personally-Identifiable Information remains confidential and is properly protected.
1.2. APPLICATION PROCESS AND SELECTION
A. The Sponsor maintains a waiting list of applicants. Each applicant is asked to complete an application form, which asks for sufficient information concerning income, employment, and credit history to establish preliminary eligibility for Program participation. Completed applications are processed on a first-come-firstserved basis. Applications are deemed complete only if all information is completed and the application is signed and dated. Incomplete applications are returned to the applicant and will not be date/time stamped until complete.
B. Once the applicant’s name comes to the top of the waiting list, their Program eligibility will be confirmed, and they will then be invited to a briefing regarding participation in the Program. At the briefing, the application is reviewed and the potential homebuyer is given a “Preliminary Eligibility Letter” for the Program, along with the following forms: Program Brochure, Attachment (G) Instructions to Homebuyer, List of lenders familiar with the Program, Attachment (E) Seller’s Lead-Based Paint Disclosure and the EPA Booklet “Protect Your Family from Lead in Your Home”, and (F) Notice to Seller.
If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there are income, asset, household composition, or other important questions that cannot be resolved, the Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months have elapsed as stated in a written assistance denial letter.
C. Each applicant must participate in individual Homebuyer Counseling consistent with the requirements in Section 1.5 of these Program Guidelines.
D. The potential homebuyer is given 90 days to find a qualified home and secure a primary loan for the housing unit. If during the 90-day timeframe, the potential
Item # 7.
City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 6 homebuyer is unable to achieve this, an extension may be given. However, if the potential homebuyer cannot meet the requirements of finding a qualified housing unit and closing a primary loan within the allotted time to participate in the Program, the reservation of funds expires and the next person on the waiting list will be given an opportunity to participate in the Program.
1.3. THE HOME PURCHASE PROCESS
A. The following is a simplified example of how a primary lender would analyze a homebuyer’s finances to determine how much the homebuyer could afford to borrow from the primary lender towards homeownership.
DEBT SERVICE
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH
HOUSING PAYMENTS TOTAL OVERALL PAYMENTS
Principal & Interest Payment $ 865 $ 1,180 Housing
Insurance 82 +200 Other Debt Service
Taxes 233 $1,380 Total Debt Service
Total Housing Expense $1,180 (Overall debt service per month is 41% of $3,388) (PITI is 35% of $3,388)
OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 150
Credit Card Payment_ 50
Total Other Debt $ 200
A $865 per month loan payment equates to borrowing $143,000 at 5.88% for a 30-year term.
SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH
Purchase Price of Property $ 280,000
Less Primary loan amount 143,000
Less down payment of 1% 2,800
Equals “GAP” $ 134,200
Plus estimated allowable settlement charges 8,400
Equals Total Subsidy $ 142,600
B. The housing unit selection process will be conducted by the homebuyers. Prior to
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 7 making an offer to purchase an eligible housing unit (see Section 3.0), homebuyer shall provide seller with a disclosure containing the following provisions (see Attachment F for Disclosure to Seller form):
1) Homebuyer has no power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement; 2) Homebuyer’s offer is an estimate of the fair market value of the housing unit, to be finally determined by a state-licensed appraiser; 3) The housing unit will be subject to inspection. In accordance with 24 CFR section 92.251(c), the housing unit must be decent, safe, sanitary, and in good repair. The standards must provide that the housing meets all applicable State and local housing quality standards and code requirements and the housing does not contain the specific deficiencies established by HUD based on the applicable standards in 24 CFR section 5.703 and published in the Federal Register for HOME assisted projects and units; 4) All housing units built prior to January 1, 1978, will require a lead paint disclosure to be signed by both the homebuyer and Seller (Attachment E); 5) Since the sale is voluntary, seller is not eligible for relocation payments or other relocation assistance;
6) Seller understands that the housing unit must be either: currently owneroccupied, newly constructed, bought by the current tenant, or vacant for three months prior to submission of the purchase offer; 7) If the seller is not provided with a statement of the above six provisions prior to or with the purchase offer, the seller may withdraw from the agreement after this information is provided.
C. Applicant submits an executed Standard Form Purchase and Sale Agreement, along with a primary lender pre-qualification letter to Program Operator. The purchase and sale agreement will be contingent on the household and housing unit meeting Program eligibility requirements and receiving Program loan approval. Program Operator verifies applicant eligibility, housing unit and loan eligibility and amount of assistance to be provided consistent with these guidelines.
D. Program Operator conducts an Environmental Review in accordance with 24 CFR Part 58, and Sponsor’s NEPA Certifying Officer signs the appropriate form before any commitment of funds are made to the homebuyer. An acquisition cannot and must not include rehabilitation immediately after transfer of title, and requires completion of a HUD CENST form from the Environmental Review - HUD Exchange webpage.
E. Program Operator, where Program Operator is not the Sponsor, submits recommendation to the Sponsor for approval or denial, including the reasons for the recommendation. Sponsor determines Applicant’s approval or denial and instructs Program Operator to notify Applicant. Program Operator provides written notification to Applicant of approval or denial with reason and, if denied, a copy of the Program’s appeal procedures. See Section 11 of these Program Guidelines.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 8 F. When primary lender requirements are met, Program funds are deposited into escrow, with required closing instructions and loan documents.
G. At the time of escrow closing, the Sponsor shall be named as an additional loss payee on fire, flood (if required), and extended coverage insurance for the length of the loan and in an amount sufficient to cover all encumbrances or full replacement cost of the housing unit. A policy of Title Insurance naming the Sponsor as insured is also required.
1.4. HOMEBUYER COSTS
A. Eligible households must document that they have the funds necessary for down payment and closing costs as required by the primary lender and the Sponsor.
The Program’s down payment requirement (below) is in place even if the primary lender has a lower down payment requirement. If the primary lender has a higher down payment requirement, there is no additional down payment requirement required by the Program.
B. Homebuyer must contribute a minimum down payment of one percent (1%) of the purchase price but may contribute more if desired.
C. Sponsor will provide a subsidy that is no greater than the applicable HOME Maximum Per-Unit Subsidy Limit for the State of California. The Sponsor may not provide more than forty-nine percent (49%) of the total indebtedness or a maximum of $75,000 in assistance, whichever is less. The subsidy will reduce the amount of the primary lender’s loan so that the payments of principal, interest, taxes, insurance, and mortgage insurance and HOA dues, if any, are within approximately 28 to 40% of the household’s gross monthly household income. In addition, the borrower’s total debt must be within the ranges in Section 5.0. of these Program Guidelines.
D. The Program Operator will determine the level of subsidy and affordability during underwriting of the Program’s loan to make sure that it conforms to the requirements of the HCD funding Program.
1.5. HOMEBUYER EDUCATION
All Program participants are required to receive housing counseling prior to Program approval, delivered by a HUD-certified housing counselor who works for an organization certified by HUD to perform housing counseling. The Program Operator will provide the homebuyer with the needed counselor information. A list of such counseling entities is available at:
https://hud4.my.site.com/housingcounseling/s/?language=en_US.
A copy of the applicant’s certificate of completion must be placed into the homebuyer file maintained by the Program Operator. In addition, the Program Operator must include
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 9 evidence that the counseling provider was HUD-certified when the counseling certification was issued.
Acceptable forms of housing counseling include in-person, phone, and/or internet, provided the client and counselor have an individualized dialogue, with guidance and advice tailored to client’s needs. This includes creating a client budget, financial analysis, an action plan, and referrals to relevant resources such as down payment assistance programs or legal services.
Housing Counseling defined: Housing counseling is independent, expert advice customized to the need of the consumer to address the consumer's housing barriers and to help achieve their housing goals and must include the following processes: Intake; financial and housing affordability analysis; an action plan, and a reasonable effort to have follow-up communication with the client when possible. The content and process of housing counseling must meet the standards outlined in 24 CFR Part 214, which include:
●addressing unique financial circumstances or housing issues; ●focusing on ways of overcoming specific obstacles to achieving a housing goal such as repairing credit;
●addressing a rental dispute, purchasing a home, locating cash for a down payment, and being informed of fair housing and fair lending requirements of the Fair Housing Act;
●finding units accessible to persons with disabilities; ●avoiding foreclosure;
●resolving a financial crisis; and
●the creation of an action plan.
1.6. CONFLICT OF INTEREST REQUIREMENTS
The applicable Conflict of Interest requirements of 24 CFR section 92.356 of the HOME Final Rule shall be followed for HOME assistance, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage, or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild, and in-laws of a covered person. (b) Persons covered. The conflict of interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 10 appointed official of the participating jurisdiction, State recipient, or subrecipient receiving HOME funds.
(c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR sections 92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.
1.7. NON-DISCRIMINATION REQUIREMENTS
The Program will be implemented in ways consistent with the Sponsor’s commitment to non-discrimination. No person shall be excluded from participation in, denied the benefit of, or be subject to discrimination under any program or activity funded in whole or in part with State or federal funds on the basis of race, color, ancestry, national origin, citizenship, immigration status, primary language, religion, disability (mental or physical), sex and gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial status (families with children under 18 or people who are pregnant), source of income, military or veteran status, or age.
2.0 APPLICANT QUALIFICATIONS
2.1. CURRENT INCOME LIMITS FOR THE AREA, BY HOUSEHOLD SIZE All applicants must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility. All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD. (See Attachment C for current income limits).
Household: Means one or more persons who will occupy a housing unit. Unborn children count in family size determination.
Annual Income: Generally, this is the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period.
2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the HCD-published HUD income limits. The annual income definition found at 24 CFR Part 5, as detailed in the most recent HCD programspecific guidance at https://www.hcd.ca.gov/grants-and-funding/income-limits/incomecalculation-and-determination-guide, will be used to independently determine and certify
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 11 the household’s annual gross income. The Program Operator should compare this annual gross income to the income the primary lender used when qualifying the household. The primary lender is usually underwriting to FHA or conventional guidelines and may not calculate the household income or assets in the same way as required by the Program. Income will be verified by examining at least 2 months of source documents evidencing annual income (e.g., wage statement, interest statement, unemployment compensation statement) and six months of checking statements for the household. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.
A. HOUSEHOLD INCOME DEFINITION:
Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period and will be used to determine program eligibility. For those types of income counted, gross amounts (before any deductions have been taken) are used. The income of live-in aides and the earned income of minors are not included in annual gross income calculations. Certain other household members living apart from the household also require special consideration. The household’s projected income must be used, rather than past earnings, when calculating income.
See Attachment A: Income Inclusions and Exclusions
B. ASSETS:
There is no asset limitation for participation in the Program. Income, or imputed income from assets, however, is recognized as part of annual income under the 24 CFR Part 5 regulations (included as Attachments A and B). An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g., interest on a savings account – or in some cases imputed income, not the asset value, which is counted in annual income.)
An asset’s cash value is the market value, less reasonable expenses required to convert the asset to cash, including, for example, penalties or fees for converting financial holdings, and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.
See Attachment B: Asset Inclusions and Exclusions
2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER
Program Operators are required to use the following definition of an eligible homebuyer, which is a “first-time homebuyer” from 8201(m) Title 25 California Code of Regulations:
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 12 “First-time homebuyer” means an individual or individuals, or an individual and his or her spouse who have not owned a home during the three-year period before the purchase of a home with subsidy assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under this definition:
1. a displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family;
2. a single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A single parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant; or
3. an individual or individuals who owns or owned, as a principal residence during the three-year period before the purchase of a home with assistance, a dwelling unit whose structure is:
a. not permanently affixed to a permanent foundation in accordance with local or state regulations; or
b. not in compliance with state, local, or model building codes and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.
3.0. HOUSING UNIT ELIGIBILITY
3.1. LOCATION AND CHARACTERISTICS
A. Housing units to be purchased must be located within the eligible area. The eligible area is described as follows: “Within the City of Grass Valley.” B. Housing unit types eligible for the Homebuyer Program are new or previouslyowned single-family residences; condominiums; or manufactured homes in mobile home parks, in common-interest developments or on a single-family lot and placed on a permanent foundation system. HOME does not allow manufactured homes unless on a permanent foundation system.
C. All housing units must be in compliance with property standards in Section 1.3.B.3 of these Program Guidelines.
D. Housing units located within a 100-year flood zone will be required to provide proof
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 13 of flood insurance with an endorsement naming the City of Grass Valley as loss payee in order to close escrow.
E. Housing must be “modest”, in accordance with the federal HOME regulations at 24 CFR section 92.254(a)(2).
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 14
3.2. CONDITIONS
A. Construction Inspection and Determining Need for Repairs.
Once the participating homebuyer has executed a purchase agreement for a housing unit and, prior to a commitment of Program funds, the following steps must be taken for the housing unit to be eligible for purchase under the Program:
1) When the Sponsor’s Program utilizes Federal funds and if the housing unit was constructed prior to 1978 then the lead-based paint requirements of Section 3.2.C will apply.
The Program Operator is responsible to ensure that a certified housing inspector walks through the housing unit, determines if it is structurally sound, and identifies any code-related and health and safety deficiencies that need to be corrected. A list of necessary repair items will be given to the homebuyers and their Realtor to present to the seller’s agent.
If there are one or more health and safety deficiencies, and/or violations of applicable building codes noted in the written report, the Sponsor will approve the subsidy only if prior to close of escrow, and seller agrees to have necessary repairs made to the dwelling unit prior to transfer of property ownership, at the seller’s expense.
Upon completion of all work required by the Program Operator, Sponsor, appraiser, pest inspector and/or certified housing inspector, a final inspection will be conducted prior to close of escrow. The inspector will sign off on all required construction work assuring that each housing unit receiving Program assistance complies with Section 1.3.B.3. requirements of these Program Guidelines that the unit is decent, safe, sanitary, and in good repair, and that it meets all applicable State and local housing quality standards and code requirements and does not contain the specific deficiencies established by HUD based on the applicable standards in 24 CFR section 5.703 and published in the Federal Register for HOME-assisted projects and units, at the time of purchase and prior to occupancy. 2) Only new construction and homes built within the previous 12 months and not previously occupied are not subject to a home inspection.
B. Per 24 CFR section 92.214(a)(6), no additional HOME assistance, including rehabilitation funds, may be provided after the 1-year anniversary of the filing of the Project Completion Report through the end of the HOME Affordability Period.
The HOME Affordability Period is as follows (amount does not include Activity Delivery and Administration Costs paid to the State Recipient by HCD):
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 15 Amount of HOME Assistance Period of Affordability in Years Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
During the HOME Affordability Period, the home must remain occupied by the borrower or an eligible heir, as their primary residence, or else all HOME assistance becomes due and payable.
C. Lead-Based Paint Hazards: All housing units built prior to 1978 for which HOME funding is anticipated are subject to the requirements of this section 3.2.C. Such homes must undergo a visual assessment by a person who has taken HUD’s online Visual Assessment course. Deteriorated paint must be stabilized using work safe methods. Clearance must be obtained after paint stabilization by a DHScertified LBP Risk Assessor/Inspector. HOME general administrative and activity delivery funds may be used to pay for lead-based paint visual assessments, and if lead mitigation and clearance costs are incurred, these programs may incorporate the costs into the calculation of Program assistance.
D. The following requirements must be met:
1) Notification: a) Prior to homebuyer’s obligation to purchase a home built prior to 1978, the Buyer will be given the most recent copy of and asked to read the EPA pamphlet “Protect Your Family From Lead in Your Home”. (EPA 747-K94-001). A signed receipt of the pamphlet will be kept in the Sponsor’s homebuyer file; b) A notice to residents is required following a risk assessment/inspection using form DHS 8552, which is provided by the DHScertified Risk Assessor/Inspector; c) a notice to residents is required following lead-based paint mitigation work using Visual Assessment and Lead-based Paint Notice of Presumption and Hazard Reduction form, LBP – 1 (Attachment H).
2) Disclosure: Prior to the homebuyer’s obligation to purchase a home built prior to 1978, the HUD disclosure (Attachment E), “Seller’s Lead-based Paint Disclosure” notice must be provided by the seller to the homebuyer. 3) Inspections: The Inspector shall conduct a “Visual Assessment” of all the dwelling unit’s painted surfaces to identify deteriorated paint. All deteriorated paint will be stabilized in accordance with CFR 35.1330 (a) and (b); and a Clearance shall be made in accordance with CFR 35.1340. 4) Mitigation: If stabilization is required, the contractor performing the mitigation work must use appropriately-trained workers. Prior to the contractor starting mitigation work, the Program Operator shall obtain copies of the contractor’s and workers’ appropriate proof of LBP training, as applicable to the job, to
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 16 assure that only qualified contractors and workers are allowed to perform the mitigation.
E. The Program Operator will: 1) confirm that the housing unit is within the eligible area, 2) will review each proposed housing unit to ensure that it meets all eligibility criteria before funding, and 3) ensure a completed Lead Compliance Document Checklist is placed in each purchaser’s file (see Attachment I).
F. Environmental Review: Program Operator conducts an Environmental Review in accordance with 24 CFR Part 58, and Sponsor’s NEPA Certifying Officer signs the appropriate form before any commitment of funds are made to the homebuyer. An acquisition must not include rehabilitation immediately after transfer of title, and requires completion of a HUD CENST form from the Environmental Review - HUD Exchange webpage.
3.3. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Eligible homes will be those that are currently owner-occupied or have been vacant for three months prior to the acceptance of a contract to purchase. A unit is ineligible if its purchase would result in the displacement of a tenant. It is not anticipated that the implementation of the Program will result in the displacement of any persons, households, or families. However, if tenant-occupied homes are inadvertently included in the Program and relocation becomes necessary, the activity will be carried out in compliance with Sponsor’s relocation plan, which describes how those permanently displaced will be relocated and paid benefits in accordance with the following Federal laws.
A. Uniform Relocation Assistance (URA) and Real Property Acquisition Policies Act of 1970
The federal URA and Real Property Acquisition Policies Act of 1970, as amended, contains requirements for carrying out real property acquisition or the displacement of a person, regardless of income status, for a project or program for which HUD financial assistance (including HOME) is provided. Requirements governing real property acquisition are described in HUD’s CPD Handbook 1378.0. The implementing regulations, 49 CFR Part 24, require developers and owners to take certain steps regarding tenants of housing to be acquired, rehabilitated, or demolished, including tenants who will not be relocated even temporarily.
B. Section104(d) of the Housing and Community Development Act of 1974 Section 104(d) requires each contractor (CHDO or State Recipient), as a condition of receiving assistance under HOME, to certify that it is following a residential antidisplacement plan and relocation assistance plan. Section 104(d) also requires relocation benefits to be provided to low-income persons who are physically displaced or economically displaced as the result of a HOME-assisted project, and requires the replacement of low-income housing, which is demolished or
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 17 converted. The implementing regulations for Section 104(d) can be found in 24 CFR Part 42, subpart (C).
3.4. PROPER NOTIFICATION AND DISCLOSURES
A. Upon selection of a housing unit, a qualified seller and homebuyer will be given the necessary disclosures for the Program. The homebuyer must have read and signed all Program disclosure forms. All property disclosures must be reviewed and signed by the homebuyer and seller.
B. All owners who wish to sell their housing units must receive an acquisition notice (Attachment F) prior to submission of the homebuyer’s original offer. This notice will be included in the contract and must be signed by all owners on title. The disclosure must contain the items listed in 1.3.B. (required for federally-funded programs).
4.0. PURCHASE PRICE LIMITS
The purchase price limits for this Program shall not exceed the HOME Homeownership Value Limit for the Sponsor’s County as updated by HCD, or a temporary waiver limit approved by HUD and the Department.
Attachment C: HOME HOMEOWNERSHIP VALUE LIMITS *Sponsor will update these limits annually as HCD provides new information.
5.0. THE PRIMARY LOAN
Prior to obtaining a loan from the Sponsor, a homebuyer must provide evidence of approval for the maximum amount the primary lender is willing to loan (the “primary loan”), although the Program may limit the primary loan amount based on the debt-to-income ratio maximums herein.
A. QUALIFYING RATIOS
The front-end (housing) debt-to-income ratio shall be between 25% and 35% and is the percentage of a borrower’s gross monthly income (before deductions) that would cover the cost of the loan principal and interest payment, property taxes, property insurance, and mortgage insurance and HOA dues, if any.
The back-end (total) debt-to-income ratio shall be between 25% and 45% and is the percentage of a borrower’s gross monthly income that would cover the cost of housing as described in the paragraph above, plus any other monthly debt payments like auto or personal loans, credit card debt, and student debt, as well as child support and alimony payments.
Exceptions to these maximums must be documented and placed into each loan file, to demonstrate compensating factors.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 18 The Program Operator must complete the HOME Subsidy Calculation Worksheet and place it into the loan file to document that the HOME assistance amount was appropriate, based on compliance with the debt ratio ranges in the two preceding paragraphs of this subsection. The Worksheet is currently accessible on the HOME webpage at:
https://www.hcd.ca.gov/grants-funding/grantsforms/docs/HOME_FTHB_Subsidy_Calculation_Worksheet_June_2013_Version.xls.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 19 B. INTEREST RATE
The primary loan must have a fixed interest rate that does not exceed, by greater than one percent, the Freddie Mac 30-year Fixed Rate Mortgage rate at https://www.freddiemac.com/pmms.
The applicable Freddie Mac rate should be from the date the primary mortgage rate was locked, or else the date of HOME loan approval. No temporary interest rate buy-downs are permitted. The loan file must contain this documentation for Department monitoring purposes.
C. LOAN TYPE AND TERM
The primary loan shall be fully amortized and have a term “all due and payable” in no fewer than 30 years. There shall not be a balloon payment due before the maturity date of the Program loan.
D. IMPOUND ACCOUNT
All households will be required to have impound accounts for the payment of taxes and insurance to ensure they remain current.
6.0. THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
For HOME, the amount of Program assistance to a homebuyer toward purchase of a home shall not exceed the HOME Maximum Per-Unit Subsidy Limits (“Subsidy Limits”) for the State of California. See Attachment C of these Program Guidelines for current Subsidy Limits. Any approved “grant” amount for lead-based paint evaluation and reduction activities or for relocation assistance shall be included in the Subsidy Limits evaluation, as shall Activity Delivery Costs.
B. NON-RECURRING CLOSING COSTS
Non-recurring costs such as credit report, escrow, closing and recording fees, and title report and title insurance, title updates and/or related costs may be included in the Program loan.
C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
The actual amount of a Homebuyer’s Program subsidy shall be computed according to the debt-to-income ratio parameters specified in Section 5.0.A. Each borrower shall receive only the subsidy needed to allow them to become homeowners (“the Gap”) while keeping their housing costs affordable. The Program Operator will use the “front-end ratio” of housing-expense-to-income to determine if the amount of the proposed primary loan is acceptable and, ultimately, the Program subsidy amount required, bridging the
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 20 gap between the acquisition cost (purchase price plus closing costs) less down payment, and the amount of the primary loan.
D. RATE AND TERMS FOR PROGRAM LOAN
All Program assistance to individual households shall be made in the form of a deferred payment (of principal and interest) loan (DPL).
The Program loan’s term shall be for 30 years.
The Program loan’s interest rate shall be 2% simple interest.
All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, and the loan period cannot be extended, except for loans that are resubordinated when a rate and term refinance is approved, per Attachment D.
E. COMBINED LOAN-TO-VALUE RATIO
The loan-to-value ratio for a Program loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price plus a maximum of up to 5 percent of the sales price to cover actual closing costs.
7.0. PROGRAM LOAN REPAYMENT (HOME RECAPTURE TERMS)
Recapture of Entire Direct Subsidy
The Program Lender recaptures the entire amount of the direct HOME subsidy provided to the homebuyer, plus any interest due according to the terms of the HOME Promissory Note, before the homebuyer receives a return. The recapture amount is limited to the net proceeds available from the sale or foreclosure.
In cases where there is appreciation, (see definition of Appreciation), the homebuyer would retain any net proceeds exceeding the direct HOME assistance plus interest due that is recaptured.
Example: A homebuyer receives $10,000 of HOME down payment assistance to purchase a home. The direct HOME subsidy to the homebuyer is $10,000, which results in a five-year Period of Affordability. If the homebuyer sells the home after three years, the grantee or state would recapture, assuming that there are sufficient net proceeds, the entire $10,000 direct HOME subsidy plus any interest due according to the terms of the HOME Promissory Note. The homebuyer would receive any net proceeds in excess of that amount.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 21 In some cases, such as in declining housing markets, net proceeds available at the time of sale may be insufficient to recapture the entire direct HOME subsidy plus interest due provided to the homebuyer. Since the HOME Final Rule limits recapture to available net proceeds, the Program Lender can recapture only what is available from net proceeds.
In a scenario where recapture provisions state that the entire direct HOME subsidy plus interest will be recaptured, and there are insufficient net proceeds available at sale, the Program Lender is not required to repay to the Department, and the Department is not required to pay back to HUD the difference between the total direct HOME subsidy and the amount available for recapture from net proceeds.
7.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time, without penalty. Payments will be applied to principal, thus reducing accrual of simple interest.
7.2. RECEIVING LOAN PAYMENTS
A. Voluntary Program loan payments, and loan payoffs, shall be made to:
City of Grass Valley
125 East Main Street
Grass Valley, CA 95945
B. The Sponsor shall be the receiver of loan payments or recaptured funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s Program Income Account, as required by the HOME program. The Program lender will accept loan payments from borrowers prepaying deferred loans, and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the Sponsor. The Sponsor may, at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.
7.3. DUE UPON SALE OR TRANSFER
If an owner sells, transfers title, or discontinues principal residency in the purchased property during the HOME Affordability Period for any reason, the loan is immediately due and payable pursuant to the Recapture (loan repayment) terms in the HOME Loan Agreement.
Notwithstanding the foregoing, if the owner of the property dies, even after the HOME Affordability Period expires, an heir may assume the HOME loan at the same rate and terms, if the heir’s household meets each of the following requirements:
• does not exceed the current HOME income limits; and
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 22 • will immediately occupy the home as their principal residence.
During the HOME Affordability Period, if the property owner dies and the heir does not meet these HOME eligibility requirements, the loan is due and payable.
The loan will be in default if the borrower fails to maintain required fire or flood insurance or fails to pay property taxes. See Attachment D on loan defaults for further information on property restrictions.
7.4. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment D for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures shall be pursued.
7.5. LOAN MONITORING PROCEDURES
Sponsor must monitor Borrowers and their homes annually to ensure adherence to Program requirements including, but not limited to, the following:
A. Owner-occupancy during the Period of Affordability
B. Property tax payment
C. Hazard insurance coverage
D. Good standing on Primary loans
8.0. PROGRAM LOAN UNDERWRITING AND APPROVAL
A. Loan Underwriting
All homebuyers or their representatives shall receive an eligibility packet with all the necessary forms, disclosures, information, and application. The homebuyer must submit a complete application packet with all the Sponsor’s Program loan documents executed, as well as all the information from the primary lender. The primary lender shall submit copies of the following to the Sponsor: 1) fully-executed property sales contract with proper seller notification; 2) mortgage application with good faith estimates and first mortgage disclosures; 3) full mortgage credit report and rent verification; 4) current third-party income verifications and verifications of assets; 5) homeownership education certificate, if applicable; and 6) signed underwriting transmittal summary and final signed loan application, both from primary lender. Staff will work with local lenders to ensure qualified participants receive only the benefit from the Sponsor’s Program needed to purchase the housing unit and that leveraged funds will be used when possible.
B. Creditworthiness
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 23 Qualifying ratios are only a rough guideline in determining a potential borrower’s creditworthiness. Many factors such as credit history, amount of down payment, and size of loan will influence the decision of the primary lender to approve or disapprove a particular loan. The borrower’s credit history will be reviewed by the Sponsor and documentation of such maintained in the loan file. The Sponsor may elect to obtain a credit report or rely on a current copy obtained by the primary lender. The Sponsor must use the information on the credit report for each adult borrower for its calculations of front-end and back-end debt-to-income ratios.
C. Documents from Primary Lender
After initial review of the qualified homebuyer's application packet, the Program Operator will request any additional documents needed. Documents may be emailed or faxed. Based on receipt and review of the final documents, the Program Operator will complete, sign, and date an income certification (using the mostrecent HCD program’s guidance on income calculation and determination), and homebuyer certification (review of credit report and income taxes). Documentation of affordability shall then be verified, and a subsidy amount will be determined by the Program Operator.
D. Disclosure of Program and Loan Information to Homebuyers The Program will inform the borrower of the results of the income determination process, including the permissible range of primary mortgage payments and the maximum purchase price possible. Information on the Program’s application will be documented with third-party verifications and/or documents in the file. For example, the sales contact will provide the final purchase price and outline how much of the closing costs are to be paid by the seller, etc. The appraisal, termite, and title reports provide information to substantiate the information in the sales contract and guide the construction inspection. The Program loan application provides current debt and housing information and will be documented by the credit report and income/asset verifications. The primary lender’s approval letter and estimated closing cost statement should reflect all the information in the loan package and show any contingencies of loan funding. Reviewing the primary lender’s loan underwriting documentation will provide basic information about the qualification of the applicant and substantiate the affordability provided by the Program loan. By reviewing and cross-checking all the primary lender information, the final Program loan amount approved will fall within the affordability parameters of the Program.
8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN Once the loan approval package has been completed, the Program Operator will submit it to the Sponsor for approval. Sponsor will review the request and may approve it with or without conditions. Upon approval, a final closing date for escrow is set, and Program
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 24 funds are provided to the homebuyer.
8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
The homebuyer(s) sign promissory notes, loan agreements, deeds of trust, and statutory lending notices (Truth In Lending (TIL), etc.); the Deeds of Trust are recorded with the County Clerk/Recorder at the same time, and the request(s) for a copy of Notice of Default are also recorded with the County Clerk/Recorder.
8.3. ESCROW PROCEDURES
The escrow/title company shall review the escrow instructions provided by the Program Lender and shall issue California Land Title Association (CLTA) and American Land Title Association (ALTA) policies to the homebuyer and the Program Lender after closing. The CLTA policy is issued to the homebuyer and protects them against failure of title based on public records and against such unrecorded risks as forgery of a deed. The ALTA policy is issued to each lender providing additional coverage for the physical aspects of the property, as well as the homebuyer’s title failure. These aspects include anything which can be determined only through physical inspection, such as correct survey lines, encroachments, mechanics liens, mining claims, and water rights. The Program Lender instructs the escrow/title company in the escrow instructions what may show on the policy, the amount of insurance on the policy (all liens should be covered), and the loss payee (each lender should be listed as a loss payee and receive an original ALTA policy).
9.0. SUBORDINATE FINANCING
Subordinate loans may be used to cover mortgage subsidy costs that exceed the Program maximum loan amount. All subordinate liens must have the payments deferred, and the term must be for at least as long as the term of the Program loan.
10.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES
The Sponsor may make amendments to these Participation Guidelines. Any changes shall be made in accordance with regulations and approved by the Sponsor’s HOME Program Representative or Program Manager. If internally required, the Sponsor’s Loan Committee and/or governing body would then need to approve said changes.
10.1. DEFINITION OF EXCEPTION
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.
10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its agent may initiate consideration of an exception and prepare a
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 25 report. This report shall contain a narrative, including the Sponsor's recommended course of action and any written or verbal information supplied by the applicant.
B. The Sponsor shall make a determination regarding the exception request based on the recommendation of the Program Operator. The request can be presented to the Sponsor’s loan committee and/or governing body for a decision.
C. Note: such exceptions may not directly or indirectly discriminate against protected classes under all current federal fair housing law and state statutes and regulations.
11.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
Any applicant denied assistance from the Program has the right to appeal. Complaints concerning the Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal must be made in writing and filed with the Sponsor.
The Sponsor will then schedule a meeting with the Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the Committee's decision, a request for an appeal may be filed with the Sponsor’s governing body. Final appeal must be filed in writing with HCD within one year after denial.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 26
ATTACHMENT A
Income Inclusions and Exclusions
The Program Operator shall access the current federal income determination regulations online at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/subject-groupECFR174c6349abd095d/section-5.609, regarding income inclusions and exclusions.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 27
ATTACHMENT B
Asset Inclusions and Exclusions
The Program Operator shall access the current federal income determination regulations at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/section-5.603 regarding the definition of Net family assets, to which the regulations at section 5.609 refer.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 28
ATTACHMENT C
HOME HOMEOWNERSHIP VALUE LIMITS FOR NEVADA COUNTY*
(Limits effective 12/1/2025)
EXISTING
CONSTRUCTION
NEW
CONSTRUCTION
(less than 12 months
old)
$499,000 $499,000
HOME MAXIMUM PER-UNIT SUBSIDY LIMITS FOR CALIFORNIA
(Limits effective 2/13/2024)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$181,488 $208,049 $252,994 $327,293 $359,263
HOME INCOME LIMITS FOR NEVADA COUNTY*
(Limits effective 6/1/2025)
Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI
$63,700 $72,800 $81,900 $91,000 $98,300 $105,600 $112,850 $120,150 *Sponsor will insert these limits for the county in which the Program is located and will update the limits annually as HCD provides new information. The link to the official, HCD-maintained Value, Subsidy, and income limits is: State and Federal Income, Rent, and Loan/Value Limits | California Department of Housing and Community Development (for HOME limits, choose “CDBG, HOME and NHTF/HHC Article I - Income, Value, Subsidy and Rent Limits”).
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 29
ATTACHMENT D
LOAN SERVICING POLICIES AND PROCEDURES
FOR THE CITY OF GRASS VALLEY
The City of Grass Valley, hereafter called “Lender,” has adopted these policies and procedures to preserve its financial interest in properties whose “Borrowers” have been assisted with public funds. The Lender will, to the greatest extent possible, follow these policies and procedures, but each loan will be evaluated and handled on a case-by-case basis. The Lender has formulated this document to comply with state and federal regulations regarding the use of these public funds and the property restrictions associated with them.
The policies and procedures are broken down into the following areas: 1) making required monthly payments or voluntary payments on a loan’s principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications; 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; and 7) processing of foreclosure in case of default on the loan.
1. Loan Repayments:
Promissory Notes are for deferred payment loans, but the Lender must accept voluntary payments on the loan. Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.
Program loan payments, and loan payoffs, shall be made to:
City of Grass Valley
125 East Main Street
Grass Valley, CA 95945
2. Payment of Property Taxes and Insurance:
As part of keeping the loan from going into default, borrower must maintain property insurance coverage naming the Lender as loss payee.
When a property is in a 100-year floodplain, the Borrower will be required to carry the necessary flood insurance. A certificate of insurance for flood and for standard property insurance with an endorsement naming the City of Grass Valley as lender loss payee will be required at close of escrow. The Lender will verify the insurance on an annual basis.
Property taxes must be kept current during the term of the loan. The Lender requires Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.
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3. Required Request for Notice of Default:
When the Borrower’s loan is in second position behind an existing first mortgage, it is the Lender's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Lender’s loan. This document requires any senior lienholder listed in the notice to notify the Lender of initiation of a foreclosure action. The Lender will then contact the Borrower and assist them in bringing the first loan current, if possible. The Lender can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Lender is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior lienholders regarding the status of their loans.
4. Annual Occupancy Restrictions and Certifications:
On owner-occupant loans, the Lender will require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. Annual occupancy verification will occur between March 1 and 15 of each year for the term of the loan].
5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:
In all cases where there is a change in title, occupancy, and/or use, the Borrower must notify the Lender in writing of the change.
If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan, provided the heir is income eligible. If the heir intends to occupy the property and is not low-income, the balance of the loan is due and payable.
If the owner moves out and converts the owner-occupied unit into a rental unit before the end of the HOME Affordability Period, the loan is due in full, unless the owner moves back in immediately.
Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Lender allow for a partial conversion where some of the residence is used for a business, but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable.
6. Requests for Subordinations:
When a Borrower wishes to refinance their existing first mortgage, they must submit a subordination request to the Program Lender. Approved refinancing of senior debt will be limited by the Department to circumstances in which the original homebuyer is securing more favorable terms that reduce monthly housing costs, or if sufficient equity exists, to take cash out for only items such as for immediate repairs to the property to correct identified health and safety violations.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 32 There can be no third-party debt payoffs or additional encumbrances on the property. The total indebtedness on the property should not exceed the current market value, except when the borrower is obtaining a federally-sponsored refinance program loan. If said loan is approved and meets all other requirements, Combined Loan-To-Value will not be considered when reviewing the subordination request.
Also, the loan must:
1. be fully amortized and have a fixed interest rate that does not exceed the current market rate, as established by an index identified in these Program Guidelines;
2. not have a temporary interest rate buy-down;
3. have a term “all due and payable” that matures prior to or concurrently with the maturity date of the Promissory Note. Therefore, the maturity date of the existing Promissory Note shall be modified to coincide with the maturity date of the new first mortgage; and
4. not have a balloon payment due before the maturity date of the Program loan.
Upon receiving the proper documentation from the refinance lender, the request will be considered by the Sponsor’s loan committee for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Sponsor.
7. Process for Loan Foreclosure:
Upon any condition of loan default, such as non-payment, lack of insurance or property tax payment, change in title or use without approval, or default on senior loans, the Lender will send out a letter to the Borrower notifying them of the default status. If the default status continues, the Lender may start the formal process of foreclosure.
When a senior lienholder starts a foreclosure process and the Lender is notified via a Request for Notice of Default, the Lender, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges, and fees to date. Lender must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Lender may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note. HOME funds may not be used for this purpose.
If the Lender determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructuring the debt such that the unit is made affordable to the Borrower. If the Lender does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. If there is sufficient value in the property, then the Lender can afford to pay for the foreclosure process, pay off the senior lienholder, and retain some or all of its investment.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 33 If the Lender decides to reinstate, the senior lienholder will accept the amount to reinstate the loan until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Lender fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder will then require a full payoff of the balance, plus related foreclosure administrative costs, to cancel foreclosure. If the Lender determines the reinstatement and maintenance of the property is not cost effective and allows the senior lienholder to complete foreclosure, the Lender's lien may be released once net available proceeds are received, if any.
Lender as Senior Lienholder
When the Lender is first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Lender may consider foreclosure. Lender’s staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured, and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Lender? 3) Can the Borrower sell the property and pay off the Lender? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all the above factors have been considered, the Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).
At the end of thirty calendar days, the Lender should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Lender of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Lender informed of the progress of the foreclosure proceedings.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 34 When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Lender could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Lender could contract with a local real estate broker to list and sell the home and use those funds for program income eligible uses.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 35
ATTACHMENT E
SELLER’S LEAD-BASED PAINT DISCLOSURE
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.
Seller’s Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) ____ Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).
________________________________________________________ (ii)____ Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
(b) Records and reports available to the seller (check (i) or (ii) below):
(i) ____ Seller has provided the purchaser with all available records and reports pertaining to Lead-based paint and/or lead-based paint hazards in the housing (list documents below). ————————————————————————————————————————
(ii) ____Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.
Purchaser’s Acknowledgment (initial)
(c)____Purchaser has received copies of all information listed above. (d)____Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e)____Purchaser has received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or Agent’s Acknowledgment (initial)
(f)____ Agent has informed the seller of the seller’s obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate. —————————— —————————— ————————— —————————
Seller Date Seller Date
—————————— —————————— ————————— —————————
Purchaser Date Purchaser Date
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 36 —————————— —————————— ————————— —————————
Agent Date Agent Date
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 37
ATTACHMENT F
Disclosure to Seller with Voluntary, Arm's Length Purchase Offer
DECLARATION
This is to inform you that would like to purchase the property, located at , if a satisfactory agreement can be reached. We are prepared to pay $____________ for a clear title to the property under conditions described in the attached proposed contract of sale.
Because Federal funds may be used in the purchase, however, we are required to disclose to you the following information:
1. The sale is voluntary. If you do not wish to sell, the buyer, ___________________, thru the agency, _____________ will not acquire your property. The buyer does not have the power of eminent domain to acquire your property by condemnation (i.e., eminent domain) and the agency/Sponsor ________________________________ will not use the power of eminent domain to acquire the property.
2. The estimated fair market value of the property is $__________ and was estimated by _______________________________________, to be finally determined by a professional appraiser prior to close of escrow.
Since the purchase would be a voluntary, arm’s-length transaction, you would not be eligible for relocation payments or other relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), or any other law or regulation. Also, as indicated in the contract of sale, this offer is made on the condition that no tenant will be permitted to occupy the property before the sale is completed.
Again, please understand that if you do not wish to sell your property, we will take no further action to acquire it. If you are willing to sell the property under the conditions described in the attached contract of sale, please sign the contract, and return it to us at:
_______________________________________________. If you have any questions about this matter, please contact __________________________at ______________________.
Sincerely,
____________________________________
Title
_________________________________ _____________________ Buyer Date
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 38 _________________________________ _____________________ Buyer Date
Form continues on next page with Seller’s Acknowledgment
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 39 Disclosure to Seller with Voluntary, Arm's Length Purchase Offer (Page 2) Acknowledgement
As the Seller I/we understand that will inspect the property for health and safety deficiencies. I/we also understand that public funds may be involved in this transaction and, as such, if the property was built before 1978, a lead-based paint disclosure must be signed by both the buyer and seller, and that a Visual Assessment will be conducted to determine the presence of deteriorated paint.
As the Seller, I/we understand that under the City of Grass Valley’s program, the property must be currently owner-occupied, vacant for three months at the time of submission of purchase offer, new (never occupied), or renter purchasing the unit. I/we hereby certify that the property is:
☐ Vacant at least 3 months; ☐ Owner-occupied; ☐ New; or ☐ Being Purchased by its Occupant
I/we hereby certify that I have read and understand this “Declaration” and:
☐ a copy of said Notice was given to me prior to the offer to purchase.
If received after presentation of the purchase offer, I/We choose:
☐ to withdraw, or ☐ not to withdraw, from the Purchase Agreement. __________________________________ _______________________ Seller Date
__________________________________ _______________________ Seller Date
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 40
ATTACHMENT G
CITY OF GRASS VALLEY
INSTRUCTIONS TO HOMEBUYER
A. Participant works with lender of choice to obtain the primary lender’s pre-qualification letter.
B. Program Operator reviews paperwork to determine program eligibility and financing affordability for participant.
C. Program Operator staff meets with qualified applicant to provide information relative to the program requirements, the lending process, and homeownership responsibilities.
D. After consultation with Program Operator regarding approved bedroom and bathroom maximums, if any, and HOME Value Limit, participant works with real estate agent to select home. Program disclosures are reviewed with agent for presentation to seller. The HOME Program allows only homes vacant for three months or more prior to the date of the purchase offer, unless the current tenant is purchasing the home or the seller has been the only occupant during those three months, to prevent displacement of rental occupants.
E. Participant selects home and enters into a purchase contract, contingent upon receiving Program loan approval and achieving Environmental Review clearance (see Section 1.3.D).
Primary lender provides the Program Operator with a copy of:
- real estate sales contract, including all addendums and counteroffers, all fullyexecuted - residential loan application and credit report
- verified income documentation
- disclosure statement
- proof of personal funds for participation in program
- breakdown of closing costs
- structural pest control clearance
- appraisal with photos and preliminary title report
F. Program Operator has home inspected to document health & safety and code compliance.
Notice of any deficiencies or needed corrections are given to participant's real estate agent, with recommended course of action. Only new construction and homes built within the previous 12 months and not previously occupied are exempt from the home inspection requirement.
G. Program Operator requests loan approval from Sponsor’s Loan Review Committee. Following loan approval, Program Operator prepares Deed of Trust, Promissory Note, Request for Notice of Default, Grant Agreement, Owner-Occupant Agreement with the City of Grass Valley and Escrow Instructions, and requests check and deposits same into escrow.
H. Escrow company furnishes Program Operator with proof of documents to be recorded, and any escrow closeout information. After receipt of recorded loan documents, Final escrow
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 41 Settlement Statement, Insurance Loss Payee Certification, and Final Title Insurance Policy, the Program Operator closes out the loan file.
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 42
ATTACHMENT H
LEAD-BASED PAINT
VISUAL ASSESSMENT, NOTICE OF PRESUMPTION, AND HAZARD REDUCTION FORM Section 1: Background Information
Property Address: No LBP found or LBP exempt □
Select one: Visual Assessment □ Presumption □ Hazard Reduction □ Section 2: Visual Assessment. Fill out Sections 1, 2, and 6. If paint stabilization is performed, also fill out Sections 4 and 5 after the work is completed.
Visual Assessment Date: Report Date:
Check if no deteriorated paint found □
Attachment A: Summary where deteriorated paint was found.
Section 3: Notice of Presumption. Fill out Sections 1, 3, 5, and 6. Provide to occupant w/in 15 days of presumption.
Date of Presumption Notice:
Lead-based paint is presumed to be present □ and/or Lead-based paint hazards are presumed to be present □
Attachment B: Summary of Presumption:
Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and
6. Provide to occupant w/in 15 days of after work completed.
Date of Hazard Reduction Notice:
Initial Hazard Reduction Notice? Yes □ No □ Start & Completion Dates:
If “No”, dates of previous Hazard Reduction Activity Notices:
Attachment C: Activity locations and types.
Attachment D: Location of building components with lead-based paint remaining in the rooms, spaces, or areas where activities were conducted.
Attachment E: Attach clearance report(s), using DHS form 8552 (and 8551 for abatement activities) Section 5: Resident Receipt of Notice for Presumption or Lead-Based Paint Hazard Reduction Activity
Printed Name: Signature: Date:
Section 6: Contact
Information
Organization:
Contact Name: Contact Signature:
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 43 Date: Address: Phone:
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City of Grass Valley HOME Program First-Time Homebuyer Program Guidelines Page 44
ATTACHMENT I
Homebuyer Program Lead Compliance Document Checklist
The following documents should be in each Homebuyer unit file to document compliance with the lead requirements:
Document Name Purpose
✔
Lead Safe Housing Rule Screening Sheet Documents
exemptions
Physical inspection form (HQS or equivalent) Documents visual assessment results
Seller Certification Seller certifies that
paint was stabilized
by qualified workers
and that safe work
practices were
followed during paint
stabilization
Clearance Report and Clearance Review Worksheet Documents that unit passed clearance
Lead-Based Paint and/or Lead-Based Paint Hazards
Disclosure Form DOC_12345.PDF (hud.gov)
Documents that
buyer received
disclosure and
pamphlet.
Lead Hazard Reduction Notice LSHR-Sample-Notice-ofLead-Hazard-Reduction.pdf (hudexchange.info)Documents that buyer received
required lead hazard
reduction notification.
This was taken from the HUD Website at:
http://portal.hud.gov/hudportal/documents/huddoc?id=20264_leadcompliance.doc
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF FEDERAL FINANCIAL ASSISTANCE HOUSING BRANCH 651 Bannon Street, Suite 400
On February 11, 2025, the Department issued the first amendment to this NOFA. First amendment changes within this NOFA can be found in red font.
Second amendment changes within this NOFA can be found in purple font.
The California Department of Housing and Community Development (Department or HCD) is pleased to announce the release of this Notice of Funding Availability (NOFA) for approximately $35 million in federal funds for the HOME Investment Partnerships Program (HOME). Funding for this NOFA is from the Department’s Fiscal Year 2024 (FY24) HOME allocation from the U.S. Department of Housing and Urban Development (HUD), plus unencumbered funds and Program Income from previous years’ allocations. (Note that the amount of funding available may change due to the factors listed on page 7, Section I (A) of this NOFA). This funding provides loans or grants to eligible HOME Applicants serving households with low- and very low-incomes, defined as at or below 80 percent (80%) of Area Median Income (AMI), and at or below 50 percent (50%) of AMI, respectively. This NOFA is subject to state and federal HOME regulations.
The Department will target 20 percent (20%) of the HOME funding for Eligible Applicants that meet the definition of a Native American Entity as set forth and provided in this NOFA.
The Department and HOME Program team will provide comprehensive technical assistance to Native American Entities throughout the application process and during implementation of project or program activities.
NOTE: In an effort to improve access and equity within the HOME Program, the Department has called attention to tribal-specific information within this NOFA in green font. However, Native American Entity Applicants are encouraged to carefully Sacramento, CA 95811
www.hcd.ca.gov
MEMORANDUM FOR:
FROM:
December 30, 2024
February 11, 2025
January 21, 2026
ALL POTENTIAL APPLICANTS
Jenny Cho, Deputy Director
Division of Federal Financial Assistance
SUBJECT: HOME Investment Partnerships Program (HOME)
Second Amendment 2024 Notice of Funding
Availability
ATTACHMENT 1
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read through all NOFA contents and application materials thoroughly, not exclusively the green font portions.
The HOME funds provided through this NOFA will be awarded on a competitive basis to State Recipients, Community Housing Development Organizations (CHDOs), and Developers, as defined in this NOFA. HOME funds awarded to Native American Entities will be on a rolling, over-the-counter (“OTC”) application basis, as set forth in this NOFA.
Funding may be used for the following eligible uses:
Project Activities
• Multifamily Rental Projects (new construction, acquisition only, and/or rehabilitation with or without acquisition); and
• First-Time Homebuyer (“FTHB”) Projects (subdivision development) Program Activities
• First-Time Homebuyer (“FTHB”) Programs, including infill new construction programs where feasible;
• Owner-Occupied Rehabilitation (“OOR”) Programs; and
• Tenant-Based Rental Assistance (“TBRA”) Programs
On January 14, 2025, the Department announced that near-term deadlines would be extended to aid fire-impacted communities with recovery and rebuilding efforts. This includes an extension to the application deadline for HOME projects and, to allow more time for communities, developers, and tribes to apply for assistance.
The Department by this amendment is reopening and extending the application deadline for HOME Program Activities applications only, for approximately $14 million remaining in the FY24 and previous years’ HOME allocation from HUD. Applications will be accepted on an Over-the-Counter (OTC), first-come, first-served basis, until the available funds are exhausted or until the release of the next HOME Program Activities NOFA, whichever occurs first.
To be considered for HOME funding, Applicants must submit a complete application for each HOME project activity and/or program activity through a main application (and a subapplication for each program activity, if applicable), with required documentation via the eCivis Grants Management System (“GMS”) Portal only. The Department will begin accepting applications received through the eCivis GMS Portal on January 24, 2025. For cities, counties, CHDOs, and Developers, each completed application package must be submitted no later than 5:00 P.M. Pacific Daylight Time (PDT) on May 22, 2025.
For Native American Entity Applicants (whether a Federally-Recognized Tribe or NonFederally-Recognized Tribe), application packages may be submitted on a continuous, OTC basis until 5:00 P.M. PDT on September 24, 2025.
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Timeline
NOFA Release December 30, 2024
Webinars January/February 2025
Competitive application submittal period for
cities, counties, CHDOs, and
Developers
From January 24, 2025, through May 22,
2025, 5:00 P.M. PDT
OTC application submittal period for
Native American Entities (NAE-FRTs
and NAE-NFRTs)
From January 31, 2025, through
September 24, 2025, 5:00 P.M. PDT, or
until the available funds are exhausted,
whichever occurs first.
OTC Program Activities application
submittal period *extended* for cities,
counties and CHDOs (including NAEFRTs)
Continuous, until the available funds are
exhausted or until the release of the next
HOME Program Activities NOFA,
whichever occurs first
All activities in this NOFA are subject to the availability of funds and continuing U.S.
Department of Housing and Urban Development (“HUD”) and legislative authority.
Applications
Applicants are strongly encouraged to set up their profiles and upload attachments and documents in the eCivis GMS Portal located at https://portal.ecivis.com/ early to ensure successful submissions prior to the application deadline. If Applicants experience trouble logging into the portal or have questions on how to complete the online application, please contact the Department at [email protected].
Assistance setting up a profile, submitting an application, and managing awards through the eCivis GMS portal is available under the Training and Technical Assistance tab on the Department’s HOME website at https://www.hcd.ca.gov/grantsandfunding/programs-active/home- investment-partnerships-program. Links to the eCivis GMS Portal, supplemental application forms, regulations, and program information are available at https://www.hcd.ca.gov/grants-and-funding/programsactive/homeinvestment-partnerships-program.
The Department will hold a series of webinars in January 2025 to review the NOFA and application process. A list of webinar dates, times, and how to register is available on the Department’s HOME website at https://www.hcd.ca.gov/grants-and-funding/programsactive/home-investment-partnerships-program.
Additionally, one-on-one technical assistance appointments will be offered during the application period to assist Applicants with questions regarding the application and application process. Applicants seeking technical assistance may email
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[email protected] to schedule an appointment. The Department will not accept applications through personal, postal, and/or shipment deliveries, facsimiles, email, walkin, or any other forms of delivery other than the eCivis GMS Portal.
To receive HOME NOFA FAQs and other program information and updates, please be sure to subscribe to the federal programs email list at https://www.hcd.ca.gov/contactus/email-signup.
Please direct any questions regarding this NOFA to the HOME Program at:
Attachments
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HOME INVESTMENT PARTNERSHIPS PROGRAM
(HOME)
2024 Notice of Funding Availability
Second Amendment
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development 651 Bannon Street, Suite 400, Sacramento, CA 95811
Website: https://www.hcd.ca.gov/grants-and-funding/programs-active/home- investmentpartnerships-program Email address: [email protected]
January 21, 2026
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Table of Contents
I. Overview..........................................................................................................................................................8 A. Notice of Funding Availability ...........................................................................................................................8 B. Timeline............................................................................................................................................................9 C. Authorizing Legislation and Regulation Authority........................................................................................... 11 D. Application Submission Process ....................................................................................................................13 E. Definitions.......................................................................................................................................................15 II. Program Requirements ................................................................................................................................20 A. Eligible Applicants ..........................................................................................................................................20 B. Additional HOME Eligibility Criteria ................................................................................................................25 C. Eligible Activities (Pursuant to 24 C.F.R. § 92.205(a)) ...................................................................................26 D. Ineligible Use of Project Funds ......................................................................................................................28 E. Activity Combination and Limits .....................................................................................................................29 F. Allocation of Funding......................................................................................................................................29 G. Activity Funding Amounts and Limits .............................................................................................................31 H. Program Income and Recaptured Funds .......................................................................................................34 I. Periods of Affordability ....................................................................................................................................35 J. Forms of Assistance.......................................................................................................................................36 K. Administrative and CHDO Operating Funds ..................................................................................................38 L. Project-Related Soft Costs .............................................................................................................................38 III. State and Federal Requirements................................................................................................................40 A. Property Standards and Physical/Capital Needs Assessments .....................................................................40 B. Timeframes for Use of Funds.........................................................................................................................40 C. Match Requirements ......................................................................................................................................42 D. Transition Reserve Policy...............................................................................................................................42 E. Annual Monitoring Fees for Multifamily Projects ............................................................................................43 IV. Application Review......................................................................................................................................44 A. Minimum Application Requirements (Threshold)............................................................................................44 B. Scoring and Ranking......................................................................................................................................47 C. Rental Project Scoring and Notification..........................................................................................................47 D. Project Activity Feasibility Review..................................................................................................................47 E. Appeals ..........................................................................................................................................................48 V. Award Announcements and Contracts.......................................................................................................49 A. Award Announcements ..................................................................................................................................49 B. Contracts ........................................................................................................................................................50 VI. Federal and State Overlays ........................................................................................................................51
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VII. Other Terms and Conditions .....................................................................................................................59 A. Right to Modify or Suspend ............................................................................................................................59 B. Incompatible Funding....................................................................................................................................59 C. Conflicts ........................................................................................................................................................60 D. False, Fictitious or Fraudulent Claims...........................................................................................................60 E. Detecting, Preventing, and Reporting Fraud .................................................................................................60 F. Combating Fraud ..........................................................................................................................................60 G. Whistleblower Protection Acts.......................................................................................................................61 H. Cancellation and Defaults .............................................................................................................................63 I. Loan Closing Requirements ...........................................................................................................................63 VIII. List of Appendices ...................................................................................................................................63
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California Department of Housing and Community Development 8 HOME 2024 NOFA Second Amendment
HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) NOTICE OF
FUNDING AVAILABILITY
I. Overview
A. Notice of Funding Availability
The California Department of Housing and Community Development (Department) is pleased to announce the release of this 2024 Notice of Funding Availability (NOFA) for approximately $35 million in Fiscal Year 2024 (FY24) federal funds for the HOME Investment Partnerships Program (HOME).
This HOME NOFA provides funding for housing project activities and housing program activities in “non-entitlement jurisdictions” (listed in Appendix A), which are jurisdictions and unincorporated areas that do not receive HOME funding directly from HUD. These HOME funds will be used to benefit residents of nonentitlement jurisdictions and are specifically designed to assist low-income households by providing affordable housing. All eligible HOME activities must benefit low-income renters, homebuyers, or homeowners.
The amount of funding available through this NOFA may vary depending on several factors, including, but not limited to, the Department’s administrative determination of need, changes in legislation directing the Department to make additional funds available, new emergency allocations of funding, or newly available funding from the disencumbrance of previous awards. If additional funding becomes available, the Department may continue evaluating the list of eligible Applicants and make awards up to the additional funding amount available or release an additional NOFA to announce the targeted purpose of the funds.
These funds may be used in conjunction with other local, state, and federal rental housing programs to assist the same units in the proposed Project development, not to exceed the HOME Program maximum per-unit subsidy limits and the actual development cost of the unit. All requirements must be met for each funding source, and, if in conflict, the most restrictive programs’ requirements apply. It is the Applicant’s responsibility to review all applicable regulations and/or guidelines which may be amended from time to time for every funding source anticipated to be used in the development of the Project.
All HOME costs must be: (1) necessary, (2) reasonable, (3) contain no duplication of benefit, (4) not be used to supplant local or state resources, (5) free from fraud, and (6) an eligible use of HOME funds.
The funds available in this NOFA will be used to meet the following statewide goals in accordance with the Department’s 2020-2024 Consolidated Plan and the Department’s 2024-2025 Annual Action Plan,
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California Department of Housing and Community Development 9 HOME 2024 NOFA Second Amendment
as the same may be amended from time to time, serving low-income households earning at or below 80 percent (80%) of Area Median Income (AMI) and very low-income households earning at or below 50 percent (50%) of AMI:
• Increase the supply of affordable rental housing;
• Expand homeownership opportunities and improve existing housing; Address and prevent homelessness; and
• Provide recovery assistance for natural disaster survivors NOTE: In an effort to improve access and equity within the HOME Program, the Department has called attention to tribal-specific information within this NOFA in green font. However, Native American Entity Applicants are encouraged to carefully read through all NOFA contents and application materials thoroughly, not just the green font portions.
B. Timeline
The following table summarizes the anticipated HOME Program timeline. The Department reserves the right to modify the projected timeline at any time. Any changes to the timeline will be communicated through the Department’s HOME Listserv (https://www.hcd.ca.gov/contact-us/email-signup).
Table 1 – Timeline for Applicants
NOFA Release December 30, 2024
eCivis application portal opens January 24, 2025
Webinars
January 14, 2025 – Rental
Projects, and FTHB Projects
January 16, 2025 – Program
Activities
Competitive Project Activities
application due date for cities, counties,
CHDOs, and Developers
May 22, 2025, by 5:00 P.M.
Pacific Daylight Time (PDT)
OTC Program Activities application
submittal period *extended* for cities,
Continuous, until the available
funds are exhausted or until the
release of the next HOME
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California Department of Housing and Community Development 10 HOME 2024 NOFA Second Amendment
counties and CHDOs (including NAEFRTs)Program Activities NOFA, whichever occurs first
Anticipated Award Announcements
Program Activities
Project Activities with 9% tax credits
Project Activities with 4% tax credits or
with no tax credits
Continuous (within 60 days of
complete application receipt)
December 2025*
December 2025*
*Based on volume, these dates
may change.
Table 2 – Timeline for Native American Entity Applicants NOFA Release December 30, 2024
eCivis application portal opens January 31, 2025
Webinar (specifically for Native American
Entity Applicants)
January 21, 2025 – Rental
Projects and FTHB Projects
January 23, 2025 – Program
Activities
OTC Project Activities application due
date for Native American Entities (NAEFRTs and NAE-NFRTs) September 24, 2025, by 5:00 P.M.
PDT, or until the available funds
are exhausted, whichever occurs
first.
OTC Program Activities application
submittal period *extended* for cities,
counties and CHDOs (including NAEFRTs)
Continuous, until the available
funds are exhausted or until the
release of the next HOME
Program Activities NOFA,
whichever occurs first
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California Department of Housing and Community Development 11 HOME 2024 NOFA Second Amendment
Anticipated Award Announcements
Program Activities
Project Activities with 9% tax credits
Project Activities with 4% tax credits or
with no tax credits
Continuous
Continuous
Continuous
C. Authorizing Legislation and Regulation Authority
This NOFA should be read in conjunction with the following regulations, statutes, and plans, which establish state and federal HOME requirements, as the same may be amended from time to time:
• State HOME Regulations (25 California Code of Regulations “C.C.R.” § 8200 et seq.) https://www.hcd.ca.gov/grantsfunding/active-funding/home/docs/State-HOME-Regulations-eff-1-1-2017- FINAL.docx investment-partnerships-program
• State Uniform Multifamily Regulations (“UMRs”) (25 C.C.R. § 8300 et seq.) https://www.hcd.ca.gov/grants-andfunding/uniform-multifamily- regulations • Federal HOME Investment Partnerships Act Statutes at Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, 42 U.S. Code “U.S.C.” 12701 et seq.
https://www.hud.gov/sites/documents/19576_HOMELAWS.PD
F
• Federal HOME Regulations (24 Code of Federal Regulations “C.F.R.” Part 92)
https://www.hudexchange.info/programs/home/home-laws-andregulations/ • Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 C.F.R. Part 200) https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part200?toc=1 regulations/ • State of California 2024-2025 Annual Action Plan
https://www.hcd.ca.gov/policy-and-research/plans-and-reports All regulatory references are to the state and federal HOME regulations unless otherwise noted.
Other helpful resources, including HUD Community Planning and Development (CPD) Notices, Policy Memos, and other HUD Policy
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California Department of Housing and Community Development 12 HOME 2024 NOFA Second Amendment
Guidance for the HOME Program can be found at
https://www.hudexchange.info/programs/home/.
Several of the terms used in the HOME NOFA have specific meanings defined by state and/or federal HOME regulations. When reviewing this NOFA and the application forms, carefully review the regulations for further defined terms. State HOME definitions are found in 25 C.C.R. § 8201 and 8217 and federal HOME definitions are found in 24 C.F.R. §
92.2. If state or federal statutes or regulations, or other laws, policies, or procedures governing HOME or its funding are modified by Congress, HUD, the Legislature, or the Department prior to completion of work to be done pursuant to awards made in connection with this NOFA, the changes may become effective immediately and apply to funded activities.
Any inconsistencies between this NOFA and state or federal HOME regulations will be resolved in favor of applicable regulations, unless a waiver or modification was approved by the Director in accordance with AB 1010 (Chapter 660, Statutes of 2019). In those instances, the waiver or modification will prevail when not in conflict with the federal HOME regulations.
The Department reserves the right at its sole discretion to suspend, amend, and/or supplement the provisions of this NOFA from time to time. If such action occurs, the Department will notify interested parties through the Department’s HOME Listserv (https://www.hcd.ca.gov/contact-us/emailsignup).
Native American Entities
The state requirements set forth in this HOME NOFA are subject to Assembly Bill 1010 (Chapter 660, Statutes of 2019) (“AB 1010”) which is set forth in Health and Safety Code (HSC) § 50406(p), which provides: (a) where the provisions of tribal law, tribal governance, tribal charter, or difference in tribal entity or legal structure would cause a violation or not satisfy the requirements of the HOME NOFA, said requirements may be modified as necessary to ensure Program compatibility; and (b) where the provisions of tribal law, tribal governance, tribal charter, or difference in tribal entity or legal structure or agency create minor inconsistencies (as determined by the Director of the Department or a duly authorized designee thereof) with the requirements set forth in the HOME NOFA, the Department may waive said requirements, as deemed necessary, to avoid an unnecessary administrative burden. Matters set forth or otherwise provided for in the HOME NOFA that may be modified or waived include, without limitation, threshold scoring requirements and any other matter set forth in HSC § 50406(p)(2).
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California Department of Housing and Community Development 13 HOME 2024 NOFA Second Amendment
Native American Entity Applicants, whether federally recognized or nonfederally recognized, are accordingly encouraged to discuss any such potential modifications or waivers and their options in that regard at or during an optional pre-application technical assistance meeting. Native American Entity Applicants should be aware that AB 1010 and the recent legislative change in AB 1878 (Reg. Sess. 2024) allows for the Native American Entity Applicants to apply for a request to modify or waive state HOME statutory and regulatory requirements, or guidelines. Neither AB 1010 or AB 1878 apply to federal HOME statutory and regulatory requirements; however, there may be other federal laws or federal doctrines that could provide a basis for a possible modification of some federal requirements for Native American Entity Applicants. An example is where a Native American Entity has its own Tribally Determined Wage, in which case Davis-Bacon wage requirements are not applicable. While AB 1010 requests can be processed at any time, Native American Entity Applicants are encouraged to begin the AB 1010 waiver request process before their application is submitted in order to allow time for the Department to review and make a legal decision on the request.
The Department urges Native American Entity Applicants to discuss possible waiver and modification requests during technical assistance sessions. AB 1010 waiver and modification request data can be accessed at the Department webpage under “Resources”
(https://www.hcd.ca.gov/policy-andresearch/native-american-tribal-affairs).
D. Application Submission Process
The Department will accept applications submitted via the eCivis application portal under this NOFA. Application acceptance and evaluation is subject to the state and federal regulations and the terms outlined in this NOFA. It is the Applicant’s responsibility to ensure that the submitted application is clear, complete, and accurate.
Electronic Application Submission Process
All Applicants must create an eCivis Profile prior to completing an application. Once the profile is created, the Applicant must complete an application via the eCivis GMS Portal. Application forms are available on the eCivis GMS Portal, including the Rental Housing Supplemental Application, which is also available on the HOME website at https://www.hcd.ca.gov/grants-and-funding/programsactive/homeinvestment-partnerships-program.
NOTE: Applications for project activities and program activities are scored and ranked separately. Application requirements include the following:
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California Department of Housing and Community Development 14 HOME 2024 NOFA Second Amendment
• Project Activities. One main application must be submitted for each project activity.
Program Activities. One main application must be submitted, along with a sub-application for each additional desired program activity.
All applications (including all required sub-applications) must be uploaded to the eCivis GMS Portal no later than the deadlines specified in Section I (B) Timeline of this NOFA.
The Department will not accept applications through personal, postal, shipment deliveries, facsimiles, email, walk-ins, or any other forms of delivery other than the eCivis GMS Portal.
Applicants that do not meet the filing deadline requirements will not be eligible for funding. Applications must be on the Department’s current forms and cannot be altered or modified by the Applicant. Excel forms must be in Excel format, not converted to a PDF document.
The Department may request additional clarifying information from thirdparty sources, such as local government entities or the Applicant, but this is entirely at the Department’s discretion to determine if the Department has authority to make an award. Upon the Department’s request, the Applicant shall be given five (5) business days, from the date of staff notification, to submit said documents to clarify the application. The thirdparty sources shall certify that all evidentiary documents deemed to be missing from the application had been executed, and were in the thirdparty source’s possession, on or prior to, the application filing deadline.
For example, an appraisal that existed prior to the application filing deadline may be accepted by the Department as clarifying information.
If the Department still deems the application incomplete, or it fails to provide the minimum requirements, the Applicant may appeal the determination following the guidance in Section IV (E) Appeals of this NOFA.
Disclosure of Application
Information provided in the application will become a public record available for review by the public, pursuant to the California Public Records Act (Chapter 1473, Statutes of 1968) (PRA). As such, any materials provided will be disclosable to any person making a request under this Act. The Department cautions Applicants to use discretion in providing information not specifically requested, including, but not limited to, bank account numbers, personal phone numbers, and home addresses. By providing this information to the Department, the Applicant is waiving any claim of confidentiality and consent to the disclosure of submitted material upon receipt of a PRA request.
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California Department of Housing and Community Development 15 HOME 2024 NOFA Second Amendment
Concurrent Applications
Due to the unique challenges of the current funding environment, the Department allows Applicants to pursue funding from more than one Department funding program. Separate concurrent applications to other HCD program funding sources are permitted under this HOME NOFA.
Applicants, however, MUST disclose all Department applications under review and/or applications anticipated to be submitted, regardless of who is applying for funding (e.g., city, county, Developer, sponsor, etc.).
The HOME Program has strict federal commitment and expenditure deadlines; therefore, if an Applicant submits any other funding applications to the Department after the HOME NOFA application due date, Applicant must notify HOME Program staff via the HOME NOFA mailbox
([email protected]).
If Applicants are competitive for a HOME award, the Department will consult with Applicants to determine the best funding scenario for Project feasibility while balancing cost containment. If the Project receives a state program award after the HOME NOFA application due date, HOME NOFA Applicants may be asked to accept a reduction of any Departmentadministered state program award by the amount of any HOME Project award.
E. Definitions
“Applicant” is any eligible State Recipient, CHDO, Developer, or Native American Entity which submits an application to the Department to operate Programs or develop or rehabilitate Projects using HOME funds within a specified jurisdictional boundary, in accordance with 25 C.C.R. § 8201 and 8204 and HSC § 50896. A Developer of a Project shall not act as administrative subcontractor for the activity.
“At Risk of Homelessness” means the same as defined under the federal Continuum of Care Program at 24 C.F.R. § 578.3, as may be amended and renumbered from time to time.
“Awardee" means the eligible Applicant (and, if applicable, the CoApplicant) that has been awarded funds from the Department under the HOME Program, and that will be held responsible for compliance with and performance of all HOME requirements.
“Choice-Limiting Actions” means an action that may have an adverse impact on the environment or limit the choice of reasonable alternatives. A Choice-Limiting Action may include, but is not limited to, executing a purchase and sale agreement, signing a lease agreement, real property acquisition, rehabilitation, repair, demolition, disposition, or new construction. For the purposes of environmental review, the Project is the aggregation of all activities that are required to build the Project and must
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California Department of Housing and Community Development 16 HOME 2024 NOFA Second Amendment
be included in the scope of the environmental review. Even if HOME funds are used to pay for only a portion of the overall Project, Awardees and Subrecipients must be aware of activities that are considered ChoiceLimiting Actions, because taking such actions before the completion of the HUD Environmental Review process can automatically disqualify the project from receiving federal funds. Activities listed at 24 C.F.R. § 58.35(b) that are Categorically Excluded Not Subject To 24 C.F.R. § 58.5 (e.g., Tenant-Based Rental Assistance, provision of services) are not ChoiceLimiting Actions. “Developer” means any legal entity, including Native American Entities (Native American Entities-Federally Recognized Tribes and Native American Entities Non-Federally Recognized Tribes), that will provide or arrange for design, financing, and construction services in connection with a housing Project as set forth in 25 C.C.R. § 8201(i). A nonprofit organization, formed as a special purpose entity in compliance with 25 C.C.R. § 8313.2, by a Non-Federally Recognized Tribe (NAE-NFRT) as defined herein, may be considered a Developer if the NAE-NFRT satisfies all other Developer eligibility requirements.
“Enforceable Funding Commitment” means a letter or other document, in form and substance satisfactory to the Department, which evidences an enforceable commitment of funds or a reservation of funds by a Project funding source, and which contains the following:
o The name of the Applicant;
o The Project name;
o The Project site address, assessor’s parcel number, or legal description; and
o The amount, interest rate (if any), and terms of the funding source.
The Enforceable Funding Commitment may be conditioned on certain standard underwriting criteria, such as appraisals, but may not be generally conditional.
Examples of unacceptable general conditions include phrases such as “subject to senior management approval,” or a statement that omits the word “commitment,” but instead indicates the lender’s “willingness to process an application” or indicates that financing is subject to loan committee approval of the Project.
Note: Contingencies in commitment documents based upon the receipt of lowincome housing tax credits do not count as committed for purposes of gaining points in this scoring category.
“Homeless” or “Homelessness” means the same as defined under the federal Continuum of Care Program at 24 C.F.R. § 578.3, as may be amended and renumbered from time to time. “Homeless” includes “Chronically Homeless” and “Homeless with a Disability.”
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California Department of Housing and Community Development 17 HOME 2024 NOFA Second Amendment
“Homeownership” means ownership in fee simple title of a 1- to 4-unit dwelling or condominium unit, or equivalent form of ownership approved by HUD. (1) The land may be owned in fee simple, or the homeowner may have a 99-year ground lease.
(i) For housing located in the insular areas, the ground lease must be 40 years or more.
(ii) For housing located on Native American Lands as defined in 25 C.C.R. § 8201(y)(1), the ground lease must be 50 years or more.
(iii) For manufactured housing, the ground lease must be for a period at least equal to the applicable period of affordability in 24 C.F.R. § 92.254.
“Local Agency” means a city, county, city and county, or a Native American Entity that is a duly constituted governing body of an Indian Reservation or Rancheria, in accordance with HSC § 50077.
“Local Public Entity” means any county, city, city and county, Native American Entity that is a duly constituted governing body of an Indian Reservation or Rancheria, redevelopment agency organized pursuant to Part 1 (commencing with section 33000) of Division 24, or housing authority organized pursuant to Part 2 (commencing with section 34200) of Division 24, in accordance with HSC § 50079.
“Native American Entity” (“NAE”) means an “Indian Tribe” or a “Tribally Designated Housing Entity” that is any of the following: a) Applicant meets the definition of Indian Tribe under Section 4103(13)(B) of Title 25 of the United States Code; b) Applicant meets the definition of Tribally Designated Housing Entity under 25 U.S.C. 4103(22); or c) If Applicant is not a federally recognized tribe as identified above, Applicant is either: (1) Listed in the Bureau of Indian Affairs Office of Federal Acknowledgment Petitioner List, pursuant to 25 C.F.R.
Part 83.1; or (2) An Indian Tribe located in California that is on the contact list maintained by the Native American Heritage Commission for the purposes of consultation pursuant to GC Section 65352.3, and 3) has formed and controls a special purpose entity in compliance with 25 C.C.R. § 8313.2. “Native American Entity – Federally Recognized Tribe (“NAE-FRT”) means any Tribal Government which is a federally recognized tribe as defined at 25 U.S.C. section 4103(13)(B) and includes a duly constituted governing body of an Indian Reservation or Rancheria as Health and Safety Code section 50077 and 50079; or is a Tribally Designated Housing Entity under 25 U.S.C. section 4103(22).
A NAE-FRT may apply as a State Recipient or Developer for HOME Funds. “Native American Entity – Non-Federally Recognized Tribe” (“NAE-NFRT”) means any Tribal Government which is an Indian Tribe located in California that
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California Department of Housing and Community Development 18 HOME 2024 NOFA Second Amendment
is not a federally recognized tribe and is either: (1) listed in the Bureau of Indian Affairs Office of Federal Acknowledgment Petitioner List, pursuant to 25 C.F.R.
Part 83.1, and has formed and controls a special purpose entity in compliance with 25 C.C.R. § 8313.2; or (2) listed on the contact list maintained by the California Native American Heritage Commission for the purposes of consultation pursuant to Government Code (GC) § 65352.3, and (3) has formed and controls a special purpose entity in compliance with 25 C.C.R. § 8313.2.
A NAE-NFRT may apply as only a Special Purpose Entity Developer for HOME funds for project activities.
“Native American Lands” means real property located within the State of California that meets the following criteria: (1) is trust land for which the United States holds title to the tract or interest in trust for the benefit of one or more tribes or individual Indians, or is restricted Indian land for which one or more tribes or individual Indians holds fee title to the tract or interest but can alienate or encumber it only with the approval of the United States; and the land may be leased for housing development and residential purposes under federal law; or (2) lands outside the jurisdiction of tribal government owned or co-owned by a Native American Entity in accordance with 25 C.C.R. § 8201(y). “Native American Entity (NAE) Service Area” means the area where the Project is located within the Native American Lands and includes lands outside the NAE tribal government jurisdiction up to 100 miles from the boundary of the NAE trust or restricted land as defined at 25 U.S.C. 2201 that is within nonentitlement jurisdictions.
“Project” means a site or sites together with any building (including a manufactured housing unit) or buildings located on the site(s) that are under common ownership, management, and financing and are to be assisted with HOME funds as a single undertaking. The Project includes all the activities associated with the site and building. For program activities, such as First-time Homebuyer (FTHB), Owner-Occupied Rehabilitation (OOR), and Tenant-Based Rental Assistance (TBRA), “Project” means assistance to one or more families. “Project Commitment” means the date the state has executed a Standard Agreement with an Awardee that includes the date and signature of each person signing the agreement, and that meets the minimum requirements of a Standard Agreement as defined in 24 C.F.R. § 92.504(c).
If the Department or the Awardee is providing HOME First-time Homebuyer (FTHB) Assistance to a family to acquire single-family housing, the Department or Awardee and the family must have an executed written agreement under which the HOME assistance will be provided, and the property title must be transferred to the family or purchaser within six months of the agreement date.
If the Department or Awardee is providing HOME assistance to a family in the form of Tenant-Based Rental Assistance (TBRA), the Department or the
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Awardee must have an executed rental assistance agreement with the owner or the tenant in accordance with the provisions of 24 C.F.R. § 92.209.
For State Recipient Awardees, Project Commitment means the date when the written agreement is executed by the Awardee and the Developer(s) of the Project.
“Project Completion” means that all necessary title transfer requirements and construction work have been performed; the Project complies with HUD’s requirements, including the property standards at 24 C.F.R. § 92.251; the final drawdown of HOME funds has been disbursed for the Project; and the Project Completion information has been entered into HUD’s disbursement and information system. For tenant-based rental assistance, Project Completion means the final drawdown has been disbursed for the Project. The Department may also require a recorded Notice of Completion, Certificate of Occupancy, and/or evidence of stabilized rents to demonstrate Project Completion. Pursuant to 24 C.F.R. § 92.502(d), Project Completion must occur within 120 days of final disbursement of funds.
“Special Needs Population(s)” means the same as defined in the Multifamily Housing Program guidelines: people with disabilities; At Risk of Homelessness; individuals with substance use disorders; frequent users of public health or mental health services, as identified by a public health or mental health agency; individuals who are fleeing domestic violence, sexual assault, or human trafficking; individuals who are experiencing Homelessness and individuals experiencing Chronic Homelessness; homeless youth as defined in California Government Code § 129571(e)(2); families in the child welfare system for whom the absence of housing is a barrier to family reunification, as certified by a county; individuals exiting from institutional settings or at risk of placement in an institutional setting; older adults in need of supportive services; or other specific groups with unique housing needs as determined by the Department. “Special Needs Populations” do not include seniors unless they otherwise qualify as a Special Needs Population.
“Special Purpose Entity” means the legal entity or combination of legal entities with continuing control of the HOME Project that meets the requirements of 25 C.C.R. § 8313.2.
“State Recipient” means a “unit of general local government” designated by the state to receive HOME funds, in accordance with 24 C.F.R. § 92.201(b)(2) and 25 C.C.R. § 8201(ii), including NAE-FRTs.
NOTE: HUD has opined in a HUD letter to the Department dated March 16, 2016, that NAE-FRTs are considered a “unit of general local government” and thus eligible for HOME funds as a State Recipient. The Department, upon request, will produce a copy of the HUD letter dated March 16, 2016. “Subrecipient” means a public agency or nonprofit organization selected by the Department to administer a portion of the state HOME Program to produce
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affordable housing, provide down payment assistance, or provide tenant-based rental assistance. Per 24 C.F.R. 92.2, a public agency or nonprofit organization that receives HOME funds solely as a Developer or owner of a housing project is not a Subrecipient.
NOTE: HUD has opined in a HUD letter to the Department dated March 16, 2016, that the definition of “public agency” is construed broadly to mean “governmental entity” and thus includes NAE-FRTs to be eligible for HOME funds as a Subrecipient.
II. Program Requirements
The following is provided as only a summary and is not to be considered a complete representation of the entirety of the eligibility, threshold, or other requirements or terms and conditions of the HOME Program.
A. Eligible Applicants
1. State Recipients, as defined by this NOFA, including NAE-FRTs To meet the definition of an eligible State Recipient, Applicants must meet the following criteria:
a. Have not been designated as a HOME Participating Jurisdiction by HUD; b. Are not participants in an Urban County Agreement with a county that is designated as a Participating Jurisdiction;
c. Are not participants in a HOME Consortium; and
d. Are proposing project or program activities that will be located or carried out in the Applicant’s defined service area. Generally, this will be within the Applicant’s city limits, a county’s unincorporated area, or on or within 100 miles of Native American Lands as defined in 25 C.C.R. § 8201(y)(1) and within non-entitlement jurisdictions.
NOTE: NAE-FRTs must carry out program activities within the defined NAE Service Area. NAE-FRTs must carry out project activities located within the state HOME Program’s non-entitlement jurisdictional boundaries, which includes Native American Lands located within California.
Eligible city and county jurisdictions for 2024 federal HOME funds are listed in Appendix A. If a jurisdiction is not listed in Appendix A and is seeking a determination of eligibility by the Department, the jurisdiction must submit a copy of the consortium or urban county agreement indicating that the jurisdiction is not a participant of a FY 2024-2025 HOME consortium or Urban County Agreement. The agreement must be submitted no later than April 16, 2025, to the Department at [email protected].
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When a State Recipient partners with a Developer for a project activity, the State Recipient must document its own experience implementing local, state, or federal funding for affordable housing (creation or preservation of) and/or community development projects. The Developer is the entity that the Department relies upon for experience and capacity and must control the Project during acquisition (site control), development, and occupancy. Developers must satisfy all other eligibility requirements detailed in this NOFA including, but not limited to, experience and capacity requirements.
NOTE: Developer experience can be used to meet the minimum experience requirements for only one Developer application in this NOFA round. Developers may not submit separate HOME applications under the name of another entity over which they exercise control, as a way to get around the one application limit. A Limited Partnership (LP) is not considered an eligible Applicant/Awardee but may be the ultimate borrower under specific circumstances. If an eligible Applicant intends to create a LP, please consult with HOME staff prior to submitting an application.
2. Eligible CHDOs (State-certified Community Housing Development Organizations (CHDOs) as defined by 25 C.C.R. § 8201(f)) a. CHDO Applicants must meet all the requirements found at 24 C.F.R. §
92.2 at the time of application submittal and be certified by the Department prior to any project activity or program activity funding award through this NOFA.
b. CHDO Applicants are required to submit through the eCivis GMS Portal the following documents required to complete the certification review prior to, or as part of, the application package:
(1) A copy of the letter from the Internal Revenue Service demonstrating exemption under Section 501(c)(3) or (4) and evidence of good standing from the California Franchise Tax Board dated no more than 12 months prior to the date Applicant applies for certification. (2) A copy of the organization’s financial statements dated no more than 12 months prior to the date Applicant applies for certification. (3) A copy of the organization’s bylaws, containing at a minimum, the governing board composition, the fulfillment and maintenance of the 1/3 low-income representation requirement found in 24 C.F.R. § 92.2, description of the manner in which board members are selected, evidence of purpose of the organization that complies with the requirement in 24 C.F.R. § 92.2, and disclosure of relationships with for-profit individuals and/or entities, if any, as they relate to the governance of the organization.
(4) A copy of the organization’s articles of incorporation and any amendments.
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(5) A copy of Certificate of Status from the California Secretary of State dated no more than 12 months from the date of application of certification.
(6) A description of the formal process used to solicit advice from lowincome beneficiaries in decisions regarding design, citing, development, and management of affordable housing.
(7) A plan that describes tenant participation in management decisions for rental projects and the proposed fair lease and grievance procedures pursuant to 24 C.F.R. § 92.303.
(8) A list of current staff members responsible for HOME activities, with resumes. If staff do not have capacity, a commitment to hire an experienced consultant and a training plan must be submitted with the application for certification. For its first year of operating as a CHDO, an organization may satisfy this requirement through a contract with a consultant who has housing development experience to train appropriate key staff of the organization.
(9) Evidence of the Applicant’s history serving the community where the HOME assisted housing will be located.
(10) A list of current board members, their occupations, and the names of their employers.
(11) A document that demonstrates to the satisfaction of the Department that any and all audit findings will have been resolved prior to receiving Department funding.
(12) Evidence the CHDO has not been debarred or suspended from participation in federal or state housing or community development projects or programs.
(13) Board Member Certifications completed and signed by each Board Member.
c. Projects being funded through this NOFA with the CHDO set-aside are required to be “owned, developed, or sponsored” by an eligible state certified CHDO. “Owned, developed, and sponsored” are defined at 24 C.F.R. § 92.300 as:
(1) Owner: Rental housing is “owned” by the CHDO if the CHDO is the owner in fee simple absolute of multifamily or single-family housing (or has a long-term ground lease meeting the requirements of 25 C.C.R. § 8316) for rental to low-income families in accordance with 24 C.F.R. §
92.252. If the housing is to be rehabilitated or constructed, the CHDO hires and oversees the Developer that rehabilitates or constructs the housing. At minimum, the CHDO must hire or contract with an experienced Project manager to oversee all aspects of the development, including obtaining zoning, securing non-HOME
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financing, selecting a Developer or general contractor, overseeing the progress of the work, and determining the reasonableness of costs.
The CHDO must own the rental housing during development and for a period at least equal to the period of affordability. If the CHDO acquires housing that meets the property standards in 24 C.F.R. §
92.251, the CHDO must own the rental housing for a period at least equal to the period of affordability.
This option is available to CHDOs with experience and capacity to own and operate affordable rental housing but without the experience or capacity to develop the Project. This option is not available if the Project is owned by a limited partnership entity (see Sponsor paragraph below).
(2) Developer: The CHDO may act as Developer if the CHDO is the owner of multifamily or single-family housing in fee simple absolute (or has a long-term ground lease meeting the requirements of 25 C.C.R. § 8316) and the Developer of new housing that will be constructed or existing substandard housing that will be rehabilitated for rent to lowincome families in accordance with 24 C.F.R. § 92.252. To be the Developer, the CHDO must be in sole charge of all aspects of the development process, including obtaining zoning, securing non-HOME financing, selecting architects, engineers, and general contractors, overseeing the progress of the work, and determining the reasonableness of costs. At a minimum, the CHDO must own the housing during development and for a period at least equal to the period of affordability specified in 24 C.F.R 92.252.
This option is not available if the Project is owned by a limited partnership entity (see Sponsor paragraph below).
CHDOs are not allowed to act as Developer in Projects where the CHDO does not have a long-term ownership interest and contractual relationship with the Project owner (i.e., a Development Services Agreement) to develop the Project.
(3) Sponsor: 24 C.F.R. Part 92 provides two explanations of what it means to “sponsor” a HOME-assisted rental housing Project. a) A CHDO “sponsors” a Project when the property is “owned” or “developed” by:
o An affiliated subsidiary of the CHDO, which is wholly owned by the CHDO;
o A limited partnership of which the CHDO or its wholly owned affiliated subsidiary is the sole general partner; or
o A limited liability company of which the CHDO or its wholly owned affiliated subsidiary is the sole managing member.
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b) A CHDO may “sponsor” a Project in situations where the CHDO owns the property (in fee simple absolute), develops the housing, and agrees to convey the housing to a different private nonprofit organization at a predetermined point in time after Project Completion. The nonprofit to which the Project will be conveyed does not need to be a CHDO but must be identified and approved by the Department prior to Project Commitment of HOME funds. Additionally, this nonprofit cannot be created by a governmental entity. If for any reason the Project is not transferred to this nonprofit, the CHDO remains liable for the HOME funds and Project for the term of the affordability period. c) If awarded HOME funds, CHDOs must obtain all necessary permanent Project financing, including the permanent financing for the required period of affordability, and must execute a Standard Agreement with the Department pursuant to 25
C.C.R. § 8217(b)(1).
d. CHDO FTHB Projects and Infill New Construction site control and ownership requirements:
(1) Housing for homeownership is “developed” by the CHDO if the CHDO is the owner (in fee simple absolute) and developer of new housing that will be constructed or existing substandard housing that will be rehabilitated for sale to low-income families in accordance with 24 C.F.R. § 92.254.
(2) Pursuant to 24 C.F.R. § 92.300(a)(6)(i), to be the “developer,” the CHDO must arrange financing of the Project and be in sole charge of construction. The CHDO may provide direct homeownership assistance (e.g., down payment assistance) when it sells the housing to low-income families and the CHDO will not be considered a subrecipient. The HOME funds for down payment assistance shall not be greater than 10 percent (10%) of the total amount of HOME funds awarded for development of the housing.
(3) The state or the State Recipient must determine and set forth in its written agreement with the CHDO the actual sales prices of the housing or the method by which the sales prices for the housing being developed will be established.
(4) Prior to award, CHDOs must be certified to serve the jurisdiction in which the Project is located, and the jurisdiction must be eligible to receive state HOME assistance funds.
3. Eligible Developers, as defined by this NOFA
The Developer applying for the HOME funding is the entity that the Department relies upon for experience and capacity and must control the Project during acquisition (site control), development, and occupancy.
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Developers must satisfy all other eligibility requirements detailed in this NOFA including, but not limited to, experience and capacity requirements.
Developers may partner with a State Recipient Applicant in addition to submitting one application on its own, however both applications must not be for the same Project.
NAE-NFRTs may apply for HOME funds only as Developers and are not eligible to apply as State Recipients or CHDOs. NAE-NFRTs applying as Developers may apply only for project activities.
NOTE: Developer experience can be used to meet the minimum experience requirements for only one Developer application in this NOFA round.
Developers may not submit separate HOME applications under the name of another entity over which they exercise control as a way to get around the one application limit. A Limited Partnership (LP) is not considered an eligible Applicant/Awardee but may be the ultimate borrower under specific circumstances. If an eligible Applicant intends to create a LP, please consult with HOME staff prior to submitting an application.
B. Additional HOME Eligibility Criteria
1. Minimum Expenditure Requirement for Program Activities (50 Percent Rule) Pursuant to 25 C.C.R. § 8204(b), Applicants with current HOME Program activities contracts for which the expenditure deadline established in the contract(s) has not yet passed shall be ineligible to apply for a program activity unless the Applicant has expended at least 50 percent (50%) of the aggregate total of program funds originally awarded by this NOFA’s applicable application submittal date.
Potential Applicants with no current HOME Program activities contracts are not affected by this rule.
“Expended Funds” are the total of all valid Administrative and Project Drawdown Requests (PDRs) or, for TBRA, future commitments on Project Set-up Reports received by the Department by the NOFA application deadline. Additionally, for FTHB and OOR, a valid PDR is limited to the amount needed for reimbursement of actual expenses for work that has been completed (Work Completed). Work Completed varies by activity as follows:
a. FTHB activity: escrow has closed, as evidenced by a final HUD Settlement Statement.
b. OOR activity: construction completed and inspected.
c. TBRA activity: rental payment assistance amount multiplied by the number of months in the individual tenants’ TBRA agreements, to the extent those funds are available in existing TBRA grants.
2. Applicants must be in good standing with the State of California and all agencies and departments thereof. For example, if an Applicant is a business
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entity, such entity must be qualified to do business in California and currently in good standing with the California Secretary of State and the California Franchise Tax Board.
C. Eligible Activities (Pursuant to 24 C.F.R. § 92.205(a))
1. Project Activities — Eligible HOME project activities are as follows:
a. Rental Projects
(1) Rental New Construction Projects — funds are provided to develop a specific multifamily Project on a specific site by a specific Developer. Rental new construction Projects may be with or without acquisition of the property; or
(2) Rental Rehabilitation Projects — funds are provided to rehabilitate a specific rental Project on a specific site by a specific Developer, with or without acquisition of the property; or (3) Rental Acquisition Projects — funds are provided to acquire a specific rental Project that meets all HOME requirements including property standards.
Applicants requesting project activities funding for a rental Project consisting of multiple sites must be in compliance with 25 C.C.R. § 8303(b).
b. First-Time Homebuyer (FTHB) Projects
Construction financing must include the following:
(1) New construction or acquisition/rehabilitation/conversion to develop homes on specific site(s).
(2) All (100 percent) of the HOME investment rolls over to permanent financing to provide mortgage assistance to eligible first-time homebuyers when the units are sold to eligible homebuyers.
NOTE: Rental and FTHB Projects with multiple sites must have common ownership and financing.
2. Program Activities — Eligible HOME Program Activities are as follows:
a. First-Time Homebuyer (FTHB) Program
(1) Acquisition-only Down Payment Assistance – funds are awarded to HOME-eligible Applicants to provide individual loans to homebuyers to purchase modest dwellings selected from the open market.
NOTE: CHDOs are ineligible for this activity.
(2) Infill New Construction – funds are awarded to eligible State Recipients or CHDOs to provide assistance for the new
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construction of dwellings on scattered sites, with no more than four dwellings per vacant site, subject to the following requirements:
Pursuant to federal National Environmental Policy Act (NEPA) requirements, an environmental assessment
(EA) will be required, regardless of the funding source, if there are more than four units developed within 2,000 feet of one another.
Pursuant to the HOME NOFA, to be considered an Infill New Construction program the Applicant must assume the
role of Developer, own the property during construction, and sell the home to an eligible homebuyer within nine (9) months of Project Completion. All dwellings must be
situated on land where site control is established through fee simple, leasehold, or another manner approved in
writing by the Department, and be affixed to a permanent foundation at the time of construction closing. Please note, Section II (A) and Section IV (A) of this NOFA further
specify site control requirements for Infill New Construction Projects.
Pursuant to 25 C.C.R. § 8207, the FTHB primary mortgage loan must be fully amortized and have a fixed interest rate that does not exceed the current market rate by more than 100 basis points (1%), based on the Freddie Mac 30-year Fixed Rate Mortgage rate at
https://www.freddiemac.com/pmms.
b. Owner-Occupied Rehabilitation (OOR) Program
Funds are provided to HOME-eligible Applicants to assist individual homeowners whose primary residence needs repairs, improvements, or reconstruction necessary for correction of any health and safety deficiencies, and to meet locally adopted standards used for rehabilitation Projects.
“Reconstruction” means demolition and rebuilding on the same residential lot. This includes homes destroyed by natural causes if HOME funds are committed within 12 months of the date of destruction.
c. Tenant-Based Rental Assistance (TBRA) Program
Funds are provided to HOME Applicants to provide rent subsidies and/or security deposits to eligible households. The minimum term of rental assistance to an eligible household is six months; however, the tenant must be initially offered a one-year lease. TBRA funds may be used to assist tenants to reside in any state HOME-eligible jurisdiction within the county where the TBRA funds were awarded. TBRA funds awarded to
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NAE-FRTs must be used to assist tenants with housing within the NAE Service Area of the NAE-FRT Applicant.
For example, TBRA funds awarded to the City of Winters can also be used for units located in West Sacramento, Woodland, and the unincorporated areas of Yolo County, since these jurisdictions are state HOME eligible within Yolo County, but they may not be used in Davis, which is not state HOME eligible.
D. Ineligible Use of Project Funds
Pursuant to 24 C.F.R. § 92.214, federal HOME funds cannot be used for several items, including, but not limited to:
1. Initial deposits to replacement reserves as required by 25 C.C.R. § 8309.
Therefore, in a Project where HOME is the only source of financing, or if other funding sources cannot pay for these costs, the Developer must pay them;
2. Providing tenant-based rental assistance for the special purposes of the existing Section 8 program;
3. Providing non-federal matching contributions required under any other federal program; and
4. Applicants may not charge servicing, origination, or other fees for the purpose of covering costs of administering the HOME Program (e.g., fees on low- income families for construction management or for inspections for compliance with property standards) (see 24 C.F.R. § 92.206(d)(6) and §
92.207), with exceptions referenced in 24 C.F.R. § 92.214(b)(1).
In accordance with the Department’s 2024-2025 Annual Action Plans, HOME funds may not be used to pay for the cost to refinance existing Project debt.
Pursuant to 24 C.F.R. § 92.206(a)(4), HOME funds cannot pay for the costs associated to construct or rehabilitate laundry and/or other community facilities located in separate buildings containing no residential units. In addition, any community facilities must be for the exclusive use of the residents and their guests.
Pursuant to 24 C.F.R. § 92.206 (b)(2)(vi), federal HOME funds cannot be used to refinance single family or multifamily housing loans made or insured by any federal program, including CDBG.
Additionally, HOME funds cannot provide a duplication of benefit or supplant any other federal, state, or local funds previously committed to the Project.
For further ineligible uses of HOME funds, refer to 24 C.F.R. § 92.214.
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E. Activity Combination and Limits
State Recipients (excluding Developers and CHDOs) may apply for multiple eligible activities as follows:
1. One rental Project and one FTHB Project; or
2. One rental Project and any combination of eligible program activities; or
3. One FTHB Project and any combination of eligible program activities, except for a FTHB program.
CHDOs may apply for multiple eligible activities as follows:
1. One rental Project and one FTHB Project; or
2. One rental or FTHB Project and one FTHB program activity for infill new construction.
Developers (not applying through a State Recipient) may submit one application pursuant to this NOFA.
This application may consist of only one eligible activity as follows:
1. One rental rehabilitation Project, with or without acquisition; or
2. One rental new construction Project, with or without acquisition.
NOTE: Using both HOME FTHB project activity funds and HOME FTHB program activity funds for the same Project is not permitted.
F. Allocation of Funding
To promote equitable distribution of HOME Program funds, funding made available by this NOFA will be allocated in accordance with the state regulations and funding targets cited below, to the extent eligible applications are submitted to the Department.
Table 3 - Allocation of Funding
Funding Targets and Statutory Set-Asides (not including the Department’s administrative costs)
Amount
CHDO Set-Aside
Pursuant to 24 C.F.R. § 92.300(a), the Department will
allocate 15 percent (15%) of total funds available for housing to be owned, developed, or sponsored by CHDOs. $ 5,273,980
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Program Activities Funding Target
Pursuant to 25 C.C.R. § 8212.1, the Department will
allocate 40 percent (40%) of total funds available for
program activities.
$ 14,454,611
Rental Projects Funding Target
Pursuant to 25 C.C.R. § 8212.1, the Department will
allocate 55 percent (55%) of total funds for rental
Projects.
$ 19,923,923
First-Time Homebuyer Projects Funding Target
Pursuant to 25 C.C.R. § 8212.1, the Department will allocate 5 percent (5%) of total funds available for FTHB Projects. $ 1,757,993
Rural Areas Funding Target
Pursuant to 25 C.C.R. § 8212 (b)(3), the Department will reserve a minimum of 50 percent (50%) of total funds
available for Rural areas as defined in the HSC § 50199.21. $ 17,579,932
Native American Entity Funding Target
The Department will target 20 percent (20%) of total funds available for Native American Entity Applications (as
either State Recipients or Developers).
Please note, NAE-NFRTs cannot apply for HOME funds
as State Recipients.
$ 7,031,973
25 C.C.R. § 8213(d) specifies that in the event there are insufficient monies to fund an Applicant’s entire program activities funding request, the Applicant may be offered a lower amount of funding. The lower amount of funding may be offered only if the funding is sufficient to complete a portion of the application activities, which, if evaluated separately, would have been awarded. If the amount of funding available is insufficient, the available funds may be allocated to another feasible program activities application.
If applications from Native American Entities total less than the funding target, the portion not awarded will roll over to the competitive portion of the NOFA for all other Applicants.
If the NOFA results in insufficient applications to meet a state statutory set-aside or funding target, the portion of the funding target not awarded will roll over to fund other competitive Applications. For example, if applications received for the program activities funding target are undersubscribed, the Department may use
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the funds of the remaining program activities target to award applications received for project activities.
If the NOFA results in insufficient applications to award all available funds, the Department reserves the right to reopen the application submission period on an OTC first come, first served basis, through the date of the next NOFA release, or until the available funds are exhausted, whichever occurs first.
G. Activity Funding Amounts and Limits
CHDOs may apply for up to $4,5000,000 for a multifamily rental Project and up to $75,000 for CHDO operating costs, for a total maximum request of $4,575,000.
Developers may apply for up to $4,500,000 for a Project. Developers are not eligible for reimbursement of administrative costs or Project-related soft costs.
Prior to issuing the Award letter, the Department will evaluate the financial feasibility of each Project and may, as necessary for Project feasibility or to prevent over subsidizing a Project in accordance with 25 C.C.R. § 8300 et seq., decrease the HOME award amount.
State Recipients (excluding Developers) may apply for up to $4,500,000 for a multifamily rental Project, up to $50,000 for administrative costs, and up to $50,000 for Project-related soft costs, for a maximum total request of $4,600,000. Please note that Project-related soft costs are included in the maximum per-unit-subsidy limit.
For State Recipient Applicants, maximum award limits apply only to the amount of HOME funds requested through this NOFA and do not include any HOME Program Income (PI) the Applicant proposes to use. Applicants are encouraged to use HOME PI on hand and any HOME (PI) that the Applicant intends to use for the project activity must be included in the application budget. For example, if an Applicant has $1,000,000 of HOME PI on hand and intends to use this PI as a funding source for the current HOME application’s project activity, the HOME PI and grant combined amount must be included in the loan to the Developer. In this case, the HOME award amount may exceed the maximum award limit by $1,000,000.
NOTE: The total combined amount of HOME funds requested (including the HOME grant/loan amount plus any PI proposed for the project) is subject to the HOME maximum per-unit subsidy limits.
Homebuyer Project Loan Limits:
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• Down Payment assistance cannot exceed the percentage indicated in the Applicant’s approved First Time Homebuyer Guidelines of the proposed unit sales price plus closing costs. Applicants will need to consider the income levels of the pool of potential participants to determine the amount of HOME funds needed to complete the project and ensure each beneficiary is provided HOME down payment assistance based on need and remain within the HOME Program maximum per-unit subsidy limits.
• The HOME Program maximum per-unit subsidy limits and the HOME Homeownership Value Limits apply. All loan amounts will be verified by a subsidy layering analysis, and loan amounts will be reduced if the amount requested exceeds what is needed.
Project Activity Funding Limits
Table 4 - Funding Limits by Project Activity
Rental new construction or rehabilitation
with or without acquisition $4,500,000
FTHB Projects $2,000,000
CHDO Operating Grant* $75,000
Administrative Grant* $50,000
Project-Related Soft Costs Grant* $50,000
*See Section II (K) and (L) of this NOFA for guidance.
Minimum Amount of Funds per Project
The minimum amount of HOME funds that must be invested in a rental or homeownership housing Project is $5,000 per HOME-assisted unit in the Project. For example, a homeownership housing Project with 30 units, of which 15 units are HOME-assisted, requires a minimum HOME investment of $75,000.
This requirement does not apply to TBRA funding.
Maximum Amount of Funds per Project
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The maximum amount of HOME funds invested in a Project, direct beneficiary assistance, and Project-related soft costs, shall not exceed the lower of:
a. HOME Program maximum per-unit subsidy limits, established by HUD (at the time of application), under 24 C.F.R. § 92.250; or
b. Pursuant to 24 C.F.R. § 92.205(d)(1), only the actual HOME-eligible development costs of the assisted units may be charged to the HOME Program. If the assisted and non-assisted units are comparable in terms of size, features, and number of bedrooms, the actual cost of the HOMEassisted units can be determined by prorating the total HOME eligible development costs of the Project so that the proportion of the total development costs charged to the HOME Program does not exceed the proportion of the HOME-assisted units in the Project. If the assisted and non-assisted units are not comparable, the actual costs may be determined based on a method of cost allocation; and
c. The amount of HOME funds invested in a Project (when combined with other financing and assistance), must accomplish the following:
i. Enable the Project as proposed to be developed and operate in compliance with all HOME requirements, including the subsidylayering requirement at 24 C.F.R. § 92.250. For more information, see HUD CPD Notice 15-11: Requirements for the Development and Implementation of HOME Underwriting and Subsidy Layering Guidelines
ii. For rental Projects, achieve a debt-service coverage ratio in accordance with 25 C.C.R. § 8310.
The current income and rent limits (at the time of application) must be used in these calculations. They are located on the Department’s website at:
https://www.hcd.ca.gov/grants- and-funding/income-limits/state-andfederalincome-rent-and-loan-value- limits. The current HOME Program maximum per-unit subsidy limits are also incorporated into the application forms required to be completed when responding to this NOFA.
FTHB and OOR activities are also subject to the HOME Homeownership Value Limits (at the time of application), also located on the same website.
A Project may receive only one HOME award as a result of this NOFA. This prohibits the combination of awards to a State Recipient, Developer, and/or CHDO on the same Project.
Pursuant to 24 C.F.R. § 92.250, before committing funds to a Project, the Department must evaluate the project in accordance with the UMRs and will not invest any HOME funds, in combination with other governmental assistance, than is necessary to provide affordable housing. HOME Projects may not receive more subsidy than what is required to make them financially feasible.
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Program Activities Funding Limits
Maximum: $1,000,000 (including general administrative costs and Project-related soft costs). Minimum: $500,000. Applies to HOME-eligible Applicants for all program activities, subject to the following chart:
Table 5 – Program Activities Funding Limits Based on
HOME Expenditure Rate* Achieved
Aggregate Expenditure Rate for
Applicant’s Recent Program Activities
Contracts
(16-HOME, 18-HOME, and 19-HOME)
Maximum Application Amount
75 percent or more $1,000,000
50 – 74.99 percent $700,000
0 – 49.99 percent $500,000
*See “Expended Funds” definition in this NOFA’s Section II (B) (1).
NOTE: Applicants that did not have any of these HOME Program activities contracts may apply for up to $500,000
Successful Applicants (Awardees) will be evaluated quarterly to determine if their progress and rate of expenditure is reasonable. The Department may disencumber all or a portion of the grant if there is an unreasonably low rate of expenditure, as determined by the Department in its sole discretion.
H. Program Income and Recaptured Funds
Federal regulations at 24 C.F.R. § 92.503 require all Program Income (PI) and Recaptured Funds (RF) to be used in accordance with HOME regulations only for HOME-eligible activities, and PI funds on hand must be maintained in an interest-bearing account. Interest earned on those funds is considered PI.
To avoid de-committing appropriated grant funds from a specific Project, HOME PI may be accumulated throughout the current reporting period (state fiscal year) but must be committed to a Project in the next state fiscal year.
Approval from the Department is required prior to the use of all HOME PI and RF.
The PI received during the current reporting period, as well as PI anticipated to be received in the next state fiscal year, must be reported to the Department in accordance with HUD’s reporting requirements. Additionally, Applicants must identify how the funds will be used (name the project or program activity, and the intended beneficiary type) to ensure timely use of
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PI funds. All PI must be reported in the HOME Annual Performance Report to the Department.
NOTE – New to this NOFA: The Department encourages Applicants to use HOME PI for their proposed project or program activity. Applicants may request approval to use HOME PI on hand through this NOFA by including the amount of PI for the proposed project or program activity in the Application Budget. HOME PI is not subject to the award limits as noted above (G. Activity Funding Amounts and Limits).
I. Periods of Affordability
All Projects that receive HOME funds are subject to federal affordability requirements at 24 C.F.R. § 92.252 and 24 C.F.R. § 92.254 for a specific number of years, as specified in the following two tables. This term is referred to in this NOFA as the “Federal Affordability Period” and includes all federal affordability requirements under 24 C.F.R. § 92.252 and 24 C.F.R. § 92.254.
All Projects that receive HOME funds are also subject to state affordability requirements at 25 C.C.R. § 8208 for a specific number of years, as specified in the table below. This term is referred to in this NOFA as the “State Affordability Period.” Projects on Native American Lands as defined by 25 C.C.R. § 8208(y)(1) require a 50-year affordability period.
The requirements of the “Federal Affordability Period” and the “State Affordability Period” run concurrently. For example, if a county Applicant proposes a new construction rental Project, the “Federal Affordability Period” for the Project will be 20 years. However, the Project will also be required to abide by the “State Affordability Period” for an additional 35 years, totaling 55 years.
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Table 6 –Affordability Periods for Rental Housing
Housing Activity State Affordability
Period
Federal
Affordability Period
Rehabilitation or acquisition of existing housing; perunit amount of HOME funds under $15,000 Development on fee
land – 55 years
Development on
Native American
Lands [25 C.C.R. §
8208(y)(1)] – 50 years
5 years
Rehabilitation or acquisition of existing housing; perunit amount of HOME funds $15,000 - $40,000 10 years Rehabilitation or acquisition of existing housing; perunit amount of HOME funds over $40,000; or rehabilitation involving refinancing
15 years
New construction or acquisition of newly-constructed
housing 20 years
Table 7 – Affordability Periods for Homebuyer Assistance Homebuyer Assistance HOME Amount Per-Unit State and Federal Affordability Periods
Under $15,000 5 years
$15,000 - $40,000 10 years
Over $40,000 15 years
J. Forms of Assistance
HOME Loans
HOME assistance shall be in the form of deferred payment loans to be repaid at the maturity date of the Promissory Note to local HOME accounts controlled by eligible Applicants or the state’s local HOME account, except for the uses of funds specifically defined under HOME grants below.
Loans provided to homebuyers must meet the requirements set forth in 25 C.C.R. § 8205(C)(1)(A), including, but not limited to, the following terms:
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• Loans financed from the CHDO set-aside pursuant to 24 C.F.R. §
92.300(a)(1) shall comply with the financing provisions as required for the following activities:
o Land acquisition for first-time homebuyer projects shall bear zero interest.
o Loans to first-time homebuyers shall bear a simple interest rate of 3 percent per annum, computed from the date the Deed of Trust is recorded on the property. Interest and principal payments shall be deferred for the term of the loan. Commencing on the 11th anniversary of the recordation date, an amount equal to 10 percent of the accrued interest shall be forgiven each year, such that on the 20th anniversary of the recordation date, all interest will have been forgiven if the borrower is in compliance with the requirements stated in the Department’s loan documents. HOME Grants
Pursuant to 25 C.C.R. § 8205(c)(2), HOME assistance must be provided in the form of a grant for relocation payments, lead-based paint hazard evaluation and reduction activities, and TBRA. HOME assistance may be provided in the form of a grant for rehabilitation activities performed under an OOR program, if necessary to complete the project when the total of all project indebtedness equals or exceeds the projected after rehabilitation appraised value. The grant amount for OOR activities is limited to 25 percent (25%) of the applicable HOME Program maximum per-unit subsidy limit for the Project. This amount is in addition to any grant funds currently permitted for relocation, lead-based paint remediation, and Project-related soft costs for the Project.
HOME assistance may be provided as a grant to eligible State Recipients to cover Project-related soft costs. Project-related soft costs are further detailed in this NOFA, 24 C.F.R. § 92.206(d), and HUD CPD Notice 06-01:
Admin and Soft Costs, Community Development Expenses under HOME and American Dream Downpayment Initiative, except that customary closing costs for home acquisition activities may be included as either a loan or part of the grant funding for Project-related soft costs.
NOTE: All Project-related soft costs associated with an OOR Project must be included in the 24 percent (24%) funding maximum available for Projectrelated soft costs and may not be passed along to the homeowner.
HOME funds for Project-related soft costs cannot be drawn down before HOME funds for activity costs are drawn down. If the activity is not completed, and a Project Completion Report for the full amount drawn down is not filed, all HOME funds for that Project, including Project-related soft costs, must be repaid to the Department.
Project-related expenses for NEPA environmental review, and architectural and engineering and other professional services incurred within the 24 months
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prior to the Project Commitment of funds, may be reimbursed at the sole discretion of the Department after execution of the Standard Agreement. On a case-by-case basis, the Department may, in writing and in its sole discretion, permit reimbursement for other eligible expenses incurred after the date of the Award letter, and prior to the effective date of the Standard Agreement, upon the written request of the Applicant.
K. Administrative and CHDO Operating Funds
The following limits apply to the amount of administrative and CHDO operating funding that Applicants may receive. Project Developers shall not act as administrative subcontractors for the same HOME-funded project activity and are not eligible for Project administrative costs.
Pursuant to 24 C.F.R. § 92.208(a), CHDO operating funds may cover reasonable and necessary costs for the operation of the CHDO. Such costs include salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment; materials; and supplies.
Project Activities
State Recipients eligible to receive administrative funds may request up to $50,000 for administrative costs.
CHDOs may request up to $75,000 in CHDO operating funding. This includes FTHB Projects.
Developers are not eligible to apply for administrative funds or Projectrelated soft costs.
All administrative costs must be reasonable, and Applicant must have detailed records to demonstrate costs are eligible for reimbursement.
Program Activities
All program activities Applicants may request up to 2.5 percent (2.5%) of the amount requested for administration, with the exception of TBRA activities.
TBRA Applicants will be provided up to 10% for general administrative costs, based on actual costs incurred. CHDOs undertaking a FTHB program activity may receive CHDO Operating funds in lieu of administrative funds at the same 2.5 percent (2.5%) rate.
All administrative costs must be reasonable, and Applicant must have detailed records to demonstrate costs are eligible for reimbursement. Actual eligible expenses must be incurred to draw down these funds.
L. Project-Related Soft Costs
Project Activities
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Eligible State Recipients of rental and homebuyer Projects may receive up to $50,000 to pay for specific eligible Project-related soft costs, previously referred to by the Department as “Activity Delivery Costs” (ADCs). Funding for Project-related soft costs are provided in the form of a grant and not part of the Project loan amount.
For a description of the types of expenses which may be charged as Project-related soft costs see 24 C.F.R. § 92.206(d)(6), 92.206(f)(2) and HUD CPD Notice 06-01: Admin and Soft Costs, Community Development Expenses under HOME and American Dream Downpayment Initiative.
Examples of Project-related soft costs include, but are not limited to:
• Preparation of work write-ups, work specifications, and cost estimates or review of these items if an owner has had them independently prepared; • Project underwriting;
• Construction inspections and oversight;
• Project document preparation;
• Costs associated with a Project-specific environmental review; • Costs associated with informing tenants or homeowners about relocation rights or benefits;
• Costs to provide information services such as affirmative marketing and fair housing information to prospective homeowners and tenants as required by 24 C.F.R. § 92.351; and
• Staff and overhead costs, such as preparing work specifications, loan processing, inspections, and other services related to assisting potential owners, tenants, and homebuyers.
Project-related soft costs must be included in the development budget, regardless of whether the funding is a loan or grant. Developers and CHDOs are not eligible for Project-related soft costs.
Program Activities
Standard Agreements will automatically allow the use of up to the maximum amount of Project-related soft costs for each specific program activity.
Funding draw requests for Project-related soft costs are made only on a reimbursement basis for actual costs incurred by a State Recipient as follows:
1. Up to 24 percent (24%) of the HOME loan/grant amount for OOR and for the rehabilitation component of acquisition with rehabilitation.
Project-related soft costs for owner-occupied rehabilitation projects may exceed the 24 percent (24%) limit if documentation of actual eligible costs is provided to the Department with the Project set-up. Documentation
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must be of actual eligible costs; consultant billings, without documentation of underlying actual costs, are not adequate.
2. Up to 6.5 percent (6.5%) of the total acquisition cost for FTHB activities.
3. Up to 5 percent (5%) of the HOME TBRA payment, per
household, for unit inspections and income determinations.
III. State and Federal Requirements
A. Property Standards and Physical/Capital Needs Assessments Pursuant to 24 C.F.R. § 92.251, as applicable, and as may be amended by HUD, housing that is acquired, constructed or rehabilitated with HOME funds must meet all applicable local codes and standards at the time of Project Completion.
Projects involving rehabilitation must comply with the Department’s HOME/NHTF Multifamily Rehabilitation Standards. Pursuant to 25 C.C.R. § 8309(b) and 24 C.F.R. § 92.251(b)(1)(ix), the Department requires rental rehabilitation Project applications to submit a third-party physical/capital needs assessment and a Replacement Reserve Study (RRS) with a 20-year forecast.
Projects involving new construction must comply with the requirements of 25 C.C.R. § 8300 et seq. and 24 C.F.R. § 92.251(a), including, but not limited to, requirements related to accessibility, disaster mitigation, written cost estimates, construction contracts and documents, construction progress inspections, and broadband infrastructure.
B. Timeframes for Use of Funds
Awardees of HOME funds are subject to progress deadlines and expenditure deadlines that are defined in the federal regulations and specified in the Standard Agreement.
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Project Activity Deadlines
Table 8 - HOME Project Activity Deadlines
Project Commitment of HOME Funds
(see Section I (E) of this NOFA for
definition of Project Commitment)
Within 24 months from award date
All non-HOME funding sources committed
to the Project Within 24 months from award date
Construction Loan Closing
Within 12 months from Project
Commitment execution date (in
accordance with 24 C.F.R. § 92.2)
Project Completion and Expenditure
Deadline
Within 4 years from Project Commitment of
HOME funds
Program Activities Deadlines
Table 9 - HOME Program Activity Deadlines
Project Commitment of HOME Funds
(see Section I (E) of this NOFA for
definition of Project Commitment)
Within approximately 90 days from
Award Date
Expenditure Deadline Within 3 years of Standard Agreement execution date
For project activities, if an Awardee fails to meet one or more of the deadlines outlined in the 25 C.C.R. § 8217(b) and described in this NOFA, a performance penalty will be imposed during the scoring on all future applicable HOME applications. It will also result in performance penalties being imposed on future HOME application(s) submitted by the Applicant, as well as application(s)
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submitted by the Project’s Developer, owner, and managing general partner within five (5) years of the award announcements of this NOFA.
All program activities funding must be expended by the deadlines established in the Standard Agreement. In addition to the final expenditure deadline, the Standard Agreement may also contain interim expenditure deadlines (e.g., 75% of funding must be expended by a specific date). Awardees must ensure that work is completed well in advance of this deadline to ensure funds are fully expended prior to the expenditure deadline.
Exceptions will be considered, at the sole discretion of the Department, if the Applicant provides clear and indisputable evidence that delays were beyond the reasonable control of the borrower and/or the Applicant, or the Department was responsible for the delay, and the Department has the flexibility to do so within federal regulations.
C. Match Requirements
Generally, HOME funds must be matched by nonfederal resources. HOME match requirements are waived for applications pursuant to this NOFA, however, the Department continues to track all match funds in project activities and program activities.
All eligible HOME match funding that Applicants obtain due to their activity’s need for other funding shall continue to be reported in the Project Set-up and Completion Reports so that the Department can bank any additional match and continue to waive the match. Match sources include funding derived from belowmarket rate loans (even if these loans are not repaid to the HOME local account), state Low Income Housing Tax Credits, property tax waivers, bond financing, fee waivers, grants, and other sources. The Department will review all Project Set-up and Completion Report forms to ensure that all reportable match funding has been included. For a HOME match calculation tool, see the Department’s HOME webpage under Resources. The HOME Contract Management Manual also contains additional information and resources on match, see http://www.hcd.ca.gov/grants-funding/activefunding/home/cmm.shtml.
D. Transition Reserve Policy
Projects must be in compliance with the Department’s Pooled Transition Reserve Policy Administrative Memorandum dated January 3, 2023, (Administrative Notice Number 22-08) and amended on August 8, 2023, (Administrative Notice Number 23-01), that implements statutory changes made under Senate Bill 948 (Chapter 667, Statutes 2022) applicable to Health and Safety Code § 50468, as may be amended from time to time, and any other related Department Transition Reserve Policy administrative memoranda that the Department may adopt, as applicable.
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E. Annual Monitoring Fees for Multifamily Projects
Pursuant to 24 C.F.R. § 92.214(b)(1)(i), the Department will charge fees to cover the cost of ongoing monitoring and physical inspection of HOME Projects during the state period of affordability. The state HOME Program will charge these fees as described below.
Developer and CHDO Projects
The Department charges an annual monitoring fee as follows:
Table 10 – Estimated 2025 Monitoring Fees
Number of HOME Units Annual Fee
12 or fewer $ 6,447
13 to 24 $10,491
25 to 36 $12,740
37 to 48 $13,113
49 to 60 $15,681
61 or more $18,358
To cover inflation, this annual monitoring fee is projected to increase annually at 3 percent (3%) following the Department's analysis of actual costs for monitoring. These annual monitoring fee amounts are subject to change before the formal commitment of HOME funds (Standard Agreement execution date).
Financial assumptions in the HOME application shall be based on the rate that will be effective at the time of initial occupancy.
Annual monitoring fees are mandatory payments. The first payment shall be prorated based upon the total number of days after permanent closing within the first fiscal year of Project operation.
Lump sum payments for monitoring fees made from development funds are not allowed for HOME Projects. Payments must be made annually pursuant to the Regulatory Agreement.
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State Recipient Projects
Pursuant to 24 C.F.R. § 92.214(b), State Recipients may also charge their borrowers annual monitoring fees to cover the actual ongoing costs to monitor and conduct physical inspections, as described below:
1. The monitoring fee charged may be less than, but not exceed, the amount charged for state CHDO and Developer Projects;
2. The monitoring fee shall be specifically stated in the State Recipient’s loan documents with the borrower;
3. The monitoring fee shall be based on the State Recipient’s analysis of actual costs for monitoring the Project and must be approved by the Department; and
4. Ten percent (10%) of the annual monitoring fee received for the Project by the State Recipient must be paid to the Department to cover the Department’s monitoring costs. For more guidance on establishing a monitoring fee, see HOMEfires Vol. 14, No. 2: Guidance on Establishing a HOME Monitoring Fee. Please note: HUD’s requirements for calculating a monitoring fee differ from the state’s UMR requirements.
Native American Entity Projects
Pursuant to this NOFA, the Department waives monitoring fees for Native American Entity Projects during the state period of affordability.
IV. Application Review
A. Minimum Application Requirements (Threshold)
Applications for HOME Projects are required to meet the minimum requirements outlined in this NOFA, 25 C.C.R. § 8200 et seq., and 24 C.F.R. Part 92.
Applications must meet the following minimum requirements at the time of application in order to move forward to the rating and ranking process:
1. The Applicant must submit a complete application in a format made available by the Department by the deadline specified in this NOFA and pursuant to 25 C.C.R. § 8211, and the application forms provided by the Department must not be altered or modified;
2. The Applicant is eligible to apply for funding, in accordance with any of the following:
• 25 C.C.R. § 8204; or
• Listed on Appendix A of the NOFA; or
• Meets the definition of an eligible Applicant in this NOFA (State Recipient, CHDO, or Developer)
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3. All other criteria and matters set forth within the NOFA shall also govern the Native American Entity target, unless and except to the extent expressly provided to the contrary by terms set forth within this NOFA;
4. The Applicant must propose at least one eligible activity pursuant to 25 C.C.R. § 8205 (other than administration);
5. The Applicant must propose an eligible use of funds pursuant to 25 C.C.R. § 8205 and 8210;
6. The Applicant must have no unresolved audit findings pursuant to 25 C.C.R. § 8204(a)(1)(D)(ii) and (2)(C)(i);
7. The Applicant must demonstrate its capacity for carrying out activities assisted with HOME funds. Awardees entering into a Standard Agreement with the Department must have capacity, cannot be shell entities, and cannot contract out for capacity (with limited exceptions for new CHDOs – see Eligible Applicants – CHDOs in the NOFA’s Section II);
8. Cities, counties, and local public housing authorities must provide documentation satisfactory to the Department that they comply with the submittal requirements of cost principles and audit requirements at 2 C.F.R. § 200.512. Any outstanding findings contained in the audit report may impact the ability of the Department to grant an award through this NOFA;
9. The Applicant and any member of its program or project team must not be on the list of debarred contractors at https://www.sam.gov/SAM/ pursuant to 25 C.C.R. § 8204(a)(1)(D)(iii) and 8204(a)(2)(C)(ii);
10.The Applicant’s requested total amount of funds for both administrative activity-specific costs and Project-related soft costs does not exceed the limits identified in the NOFA;
11.CHDO applications must contain procedures for ensuring effective Project control pursuant to 24 C.F.R. § 92.300(a)(1) and 25 C.C.R. § 8204(a)(2)(D);
12.There is no pending or threatened litigation that could affect implementation of the proposed Project; and
13.When applying for project activities, the Applicant (not the ultimate borrower) must demonstrate documented site control of the Project at the time of application. Site control is subject to the HOME funding award as required by 25 C.C.R. § 8212(a)(6)(B), 25 C.C.R. § 8303, and 24 C.F.R. Part 92, including but not limited to, demonstrating site control by one of the following:
• Fee title, which, for tribal trust land, may be evidenced by a title status report (TSR) or an attorney’s opinion regarding chain of title and current title status;
• A leasehold interest on the Project property with provisions that enable the lessee to make improvements on and encumber the
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property, provided that the terms and conditions of any proposed lease shall permit, prior to loan closing, compliance with all Program requirements, including compliance with 25 C.C.R. § 8316;
• An option to purchase is obtained, conditioned on the responsible entity’s determination to proceed with, modify, or cancel the Project based on the results of a subsequent environmental review, and the receipt of an Authority to Use Grants Funds (“AUGF”) from the Department for State Recipient Projects and from HUD for Developer and CHDO Projects. The cost to secure the site control document can be only a nominal portion of the purchase price; • A Purchase Agreement, Disposition and Development
Agreement (DDA), Option to Lease, or Exclusive Right to Negotiate is obtained, but this agreement cannot be conditioned on NEPA/California Environmental Quality Act (CEQA) clearance or any other federal requirement; or
• A conditional purchase contract may be used for an existing singlefamily home (1 to 4 units) or an existing multifamily residential Project in some limited circumstances, even when federal funds have already been contemplated.
NOTE: For more details on required and prohibited provisions of agreements consistent with NEPA, see HUD CPD Notice 98-01: Layering Guidance for HOME Participating Jurisdictions When Combining HOME Funds with Other Governmental Subsidies; HUD CPD Notice 15-09: Requirements for Committing HOME Funds; and HUD Memo: Guidance on Operations and Conditional Contracts for Purchase of Real Property for Environmental Reviews Conducted by a Responsible Entity under 24 C.F.R. Part 58.
General HUD rules state that Purchase Agreements are acceptable if federal funds are not contemplated. Applicants are cautioned to make sure that the Purchase Agreement or DDA is open-ended or is of sufficient duration that it does not need to be extended after the HOME application is submitted.
HUD has ruled that if a Purchase Agreement/DDA expires after the HOME application is submitted, and before the AUGF is executed, the execution of an extension would be a Choice-Limiting Action (renewal prior to expiration is acceptable). The application also should ensure the Purchase Agreement/DDA has other contingencies, such as a permanent financing contingency, so that the seller cannot legally compel an individual to purchase the site prior to receiving the AUGF.
For more information on conditional purchase contracts, see HUD Memo:
Guidance on Operations and Conditional Contracts for Purchase of Real Property for Environmental Reviews Conducted by a Responsible Entity under 24 C.F.R. Part 58.
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B. Scoring and Ranking
After meeting the threshold requirements, applications will be scored as follows.
The Department will score, rank, and fund applications based on a review of eligible activities for which funds are requested. Each application must be submitted using Department forms and contain all information required pursuant to 25 C.C.R. § 8211(c)(d). Scoring for Projects is subject to the appeal process described in Section IV (E) of this NOFA. Each project activity or combination of program activities will be evaluated and ranked separately.
In the case of a tie score, the application demonstrating the highest jurisdictional poverty level will be funded first. If CHDOs and/or Developers are applying from the same jurisdictional area, the Project with lower average rents (expressed as a percentage of area median income) will be funded first.
Applications will be funded in descending order based on points earned.
Applications that qualify for CHDO, FTHB Project, and Rural targets will be funded first, based on their scores as necessary to meet the minimum setasides and funding targets.
Once the set-asides and targets have been achieved, remaining applications will be funded within their respective allocations pursuant to 25 C.C.R. § 8212.1, based on scores relative to all other applications, with the highest-scoring applications funded first.
All scoring factors and evaluation requirements are listed in Appendix D and any applicable Supplemental Applications.
C. Rental Project Scoring and Notification
Once rental Project application scoring is complete, the Department will email the authorized representative and contact person listed in the application describing the scores and facts upon which those scores were determined.
D. Project Activity Feasibility Review
In accordance with 25 C.C.R. § 8212(a)(6), 25 C.C.R. § 8310, and 24 C.F.R. §
92.250(b), the Department will perform underwriting analysis to substantiate the Project is financially feasible for at least 20 years, as well as cost allocation and subsidy layering analyses to determine the appropriate amount of the HOME award.
When making its feasibility determinations, the Department will:
• Examine all the sources and uses of funds for the Project (including any operating cost assistance, operating cost assistance reserve, or projectbased rental assistance that will be provided to the Project); and • Assess the current market demand in the neighborhood the Project will be located, the experience of the Applicant team, the amount and quality of