STAFF REPORT
City of Lancaster
CC 6
12/9/2025
TN
Date: December 9, 2025
To: Mayor Parris and City Council Members
From: Patti Garibay, Director - Community Development
Becky Bartlett, Manager - Housing
Subject: Resolution No. 25-XX for Conditional Award for CalHome Super NOFA Recommendation:
1. Adopt Resolution No. 25-XX, authorizing the acceptance of the conditional award from the California State Department of Housing and Community Development for funding under the CalHome Program and the Joe Serna, Jr., Farmworker Housing Grant Fund.
2. Authorize the City Manager or his designee to execute any documents related to the acceptance and implantation of approved the CalHome Program and the Joe Serna, Jr., Farmworker Housing Grant Fund.
G.C. Section 84308: No
Fiscal Impact:
None. The City of Lancaster will receive conditional funding in the amount of $4,957,500 from the CalHome Program to support the HNR-3 Mortgage Assistance Program. The allocation will need to be appropriated as listed below:
Revenue: $4,957,500 - 23022000.4998 CALHM25.CALHOME
Expenditures: $4,957,500 - 23022000.5656 CALHM25.MISCGRANT Background:
On December 12, 2024, the California Department of Housing and Community Development (HCD) issued a Homeownership Super Notice of Funding Availability (NOFA), offering funding under the CalHome Program and the Joe Serna, Jr., Farmworker Housing Grant Fund. These programs are supported by the California General Fund, CalHome Proposition 46 and Proposition 1C, and the Building Homes and Jobs Act (SB 2, 2017–2018).
The City submitted an application in response to the Homeownership Super NOFA and was subsequently awarded funding under the CalHome Program for mortgage assistance. HCD 2 2
4 5
issued a Conditional Award Commitment dated October 16, 2025, confirming the City's eligibility and award.
The CalHome Mortgage Assistance Program will provide at least 30 deferred payment second mortgage loans to first-time homebuyers earning 80% or less of AMI, who will be buying condominiums homes in Grupe’s new condominium development. Approximately 215 first-time homebuyer condominiums are planned for the HNR-3 site, targeting Low- and Moderate-Income households, as well as Workforce-Income households.
The Mortgage Assistance Grant funds will be administered directly by the City as part of Lancaster's First Time Home Buyer Program (“FTHB”), which makes available deferred payment (with no monthly payments) second mortgage loans to households earning up to 80% AMI.
The maximum Loan amount by the City to an eligible borrower will be 40% of the borrower’s purchase price for the property or $150,000, whichever is lower. The minimum loan to a borrower will be not less than $1,000. The maximum appraised home value at time of purchase is the highest local median sales price of a single-family home during the past six months. The Loan-to-Value Ratio, when combined with all other indebtedness on a home, cannot exceed 100% of the sales price.
Attachment:
Resolution 25-XX