STAFF REPORT
City of Lancaster
CC 7
1/28/2025
TN
Date: January 28, 2025
To: Mayor Parris and City Council Members
From: George N. Harris II, Senior Director/Treasurer – Admin Services Christopher Aune, Housing Manager
Subject: Application for State of California CalHome Program Funds.
Recommendation:
1. Adopt Resolution No. , authorizing the submittal of an application to the California State Department of Housing and Community Development for funding under the CalHome Program; the execution of a standard agreement if selected for such funding and any amendments thereto; and any related documents necessary to participate in the CalHome Program.
2. If funded, accept the CalHome grant award funds, and appropriate said funds into a CalHome Fund account number, to be created by Finance.
3. Authorize the City Manager or his designee to expend any awarded funds (up to $5,000,000) million), in accordance with the CalHome program.
4. Find that this item is not a project pursuant to the California Environmental Quality Act.
G.C. Section 84308: No
Fiscal Impact:
None at this time. Should Lancaster be awarded funds from this competitive grant program, the City will receive up to $5,000,000 to fund first-time homebuyer assistance. Direct staff time is an eligible grant-funded cost.
Background:
HCD is responsible for administering the CalHome Program in support of homeownership and makes grants to experienced local public agencies to assist individual households. The program goal is to enable households earning no more than 80 percent of Area Median Income (AMI), currently $110,950 per year for a family of four in Los Angeles County, to become homeowners. 1 9
1 8
HCD issued a Notice of Funding Availability (NOFA) on December 12, 2024, for several activities, including First-Time Homebuyer Mortgage Assistance, with applications due in February 2025. Funding under this NOFA is provided from the Affordable Housing Bond Act Trust Fund. The maximum application amount is $10 million, and HCD will provide funding to cover activity delivery fees (administrative costs) of up to 5 percent of the total award amount.
Funding under this CalHome award will be deployed through Housing’s existing First-Time Homebuyer Program, through which eligible households earning up to 80 percent of AMI may receive a deferred payment (no monthly loans with no interest) second mortgage loans. FTHB assistance can provide the lower of up to 40 percent (40%) of the purchase price or the maximum program of $150,000. The loan is due upon sale, non-owner occupancy, cash-out refinance, or at the end of the 30-year term. Under the current NOFA, the maximum loan amount per eligible household is 40 percent of the purchase price, up to $200,000. Funding from this CalHome grant for first-time homebuyer assistance would be dedicated to vacant land currently owned by the Housing Authority located at the former Antelope Valley Fairgrounds (NE corner of Division and Ave I).
If the application is successful, funds will be available after the City Manager enters into a Standard Agreement with HCD, which historically occurred five to six months after the awards are announced. The CalHome application will request $5,000,000.00 in funding. If the application is successful, CalHome may elect to award less than the amount requested or more than the amount requested, up to $10,000,000.00. If the grant is awarded, all activity delivery costs will be fully funded by the grant
Attachment:
Resolution No.