STAFF REPORT
City of Lancaster
CC 21
3/26/2024
JC
Date: March 26, 2024
To: Mayor Parris and City Council Members
From: Larissa De La Cruz, Director - Community Development Lisa Anderson, Housing Analyst - Housing and Economic Development Subject: Lancaster Housing Rehabilitation Program Grant Funding Recommendations:
1. Authorize the appropriation of additional future Community Development Block Grant (CDBG) funding to the Lancaster Housing Rehabilitation Program, up to a maximum cumulative amount of $3,000,000.00.
2. Authorize the City Manager or his designee to negotiate and execute individual grant/loan agreements of up to $110,000.00 each with qualified homeowners under the parameters of the Lancaster Housing Rehabilitation Program, up to a maximum cumulative amount of $3,000,000.00 with the concurrence of the City Attorney.
Fiscal Impact:
$3,000,000 to be allocated in future years in the Action Plan.
Background:
On May 9, 2023, the City Council approved the FY 2023-2024 Action Plan. The total CDBG grant amount allocated towards the Lancaster Housing Rehabilitation Program was approved for $565,074.00.
The City will continue to receive annual CDBG grant funding. Taking into consideration future grant allocation, staff is requesting Council authorize the City Manager or his designee to negotiate and execute individual loan agreements of up to $110,000.00 each with qualified homeowners under the parameters of the Lancaster Housing Rehabilitation Program, up to a maximum cumulative amount of $3,000,000.00.
The Lancaster Housing Rehabilitation Program will provide residents with the opportunity to enhance their living conditions through grants and loans for home repairs and renovations. This program is a significant step towards ensuring safe and comfortable housing for all Lancaster residents.
The Housing Rehabilitation Program offers various funding categories to cater to different needs within the community:
Emergency Repair Program (ERP): For households earning less than 80% of the area median income (AMI), grants of up to $5,000 are available to address eligible emergency home repairs.
Housing Rehab Loan Program (HRLP): Households with earnings below 80% of the AMI can benefit from grants of up to $10,000, along with loans that can reach a maximum assistance level of $50,000 for eligible home repairs.
Qualified applicants who are veterans, seniors, or disabled are eligible for an additional $5,000 grant under each program.
All loans issued under the program are zero interest, and may be forgiven based on the length of time the homeowner remains in the home.
Currently, the City has received 55 applications and has started a waiting list. The first set of families approved for the program should see contractors roll up to their doors within the next few months.
In order to be eligible for funding, applicants’ household income must fall below 80% of the County median income, which is published each year. The current limits are listed below:
Low-Income (80% of Area Median) *
Household Size Income Limit
1 $70,650
2 $80,750
3 $90,850
4 $100,900
5 $109,000
6 $117,050
7 $125,150
8 $133,200
Based on 2023 Median Income for Los Angeles County. (Effective June 15, 2023) LA/js