Town of Paradise
Town Council Meeting Amended Agenda
6:00 PM – September 08, 2026
Doug LaMalfa Town Council Chambers – 5555 Skyway, Paradise, CA
Meeting Procedures
I. The Mayor is the Presiding Chair and is responsible for maintaining an orderly meeting. The Mayor calls the meeting to order and introduces each item on the agenda.
II. The Town staff then provides a report to Council and answers questions from the Council.
III. Citizens are encouraged to participate in the meeting process and are provided several opportunities to address Council. Any speaker addressing the Council is limited to three minutes per speaker - fifteen minutes per agenda item A. If you wish to address the Council regarding a specific agenda item, please complete a “Request to Address Council” card and give it to the Town Clerk prior to the beginning of the meeting. This process is voluntary and allows for citizens to be called to the speaker podium in alphabetical order.
Comments and questions from the public must be directed to the Presiding Chair and Town Council Members (please do not address staff.) Town staff is available to address citizen concerns Monday through Thursday at Town Hall between the hours of 8am and 5pm.
B. If you wish to address Council regarding an item not on the agenda, you may do so under Item 4, “Public Communication.” Again, please fill out a card and give it to the Town Clerk before the meeting. State Law prohibits Council action on items not listed on a public agenda.
In compliance with the Americans with Disabilities Act (ADA) Compliance, persons who need special accommodations to participate in the Town Council meeting may contact the Town Clerk at least three business days prior to the date of the meeting to provide time for any such accommodation.
Town Manager, Jennifer Macarthy
Town Attorney, Scott E. Huber
Town Clerk/Elections Official, Melanie Elvis
CDD, Planning & Onsite, Susan Hartman
CDD, Building & Code Enforcement, Tony Lindsey
Finance Director/Town Treasurer, Aimee Beleu
Public Works Director/Town Engineer, Marc Mattox
Division Chief, CAL FIRE/Paradise Fire, Jason Finney
Chief of Police, Eric Reinbold
Recovery & Economic Development Director, Colette Curtis Human Resources & Risk Management Director, Crystal Peters Information Systems Director, Luis Marquez
Mayor, Steve Crowder
Vice Mayor, Steve “Woody” Culleton
Council Member, Greg Bolin
Council Member, Heidi Lange
Council Member, Ronald Lassonde
1 1. OPENING
1a. Call to Order
1b. Pledge of Allegiance to the Flag of the United States of America 1c. Invocation
1d. Roll Call
1e. p5 Camp Fire Recovery Updates - Written reports are included in the agenda packet.
Colette Curtis, Recovery and Economic Development Director - recovery projects, advocacy, economic recovery and development, communications, emergency operations and Housing updates.
Marc Mattox, Assistant Town Manager -infrastructure updates. 1f. p15 Paradise Sewer Project Update by Assistant Town Manager Marc Mattox.
2. CONSENT CALENDAR
One roll call vote is taken for all items. Consent items are considered to be routine business that does not call for discussion.
2a. p17 Approve minutes of the August 10, 2026 Special Town Council meeting and August 11, 2026 Special and Regular Town Council meetings. (Town Clerk/ Melanie Elvis)
2b. p24 Approve August 2026 Cash Disbursements in the amount of $4,588,456.24. (Finance Director/Aimee Beleu)
2c. p32 Review and file the 2026 Conflict of Interest Code Biennial Notice confirming the Town’s code of economic interest resolution is current and timely. (Town Clerk, Melanie Elvis)
2d. p34 Approve the Amendment to the Memorandum of Understanding with Butte County for VEOCI virtual Emergency Operations Center services to align the agreement with the intended period of performance. (ROLL CALL VOTE) (Project Manager/Brian Solecki)
2e. p37 Review and file the August 2026 Quarterly Financial/HR Position Report. (Finance Director/Aimee Beleu)
2f. p49 Review and receive the FEMA/CalOES Category 4 Tree Removal Program Project Closeout Report to formally closeout the project and all associated contracts and agreements. (Project Manager/Brian Solecki) 2g. p68 1. Approve publication of the Request for Qualifications (RFQ) for the HOME Infill New Construction for First-Time Homebuyers program; and,
2. Adopt Resolution No. 2026-___, “A Resolution of the Town Council of the Town of Paradise Amending and Updating the Home Investment Partnerships Program (HOME) Infill New Construction First-Time Home Buyer Program Guidelines, Previously Adopted by Resolution No. 2025-
64.” (Recovery & Economic Development Director/Colette Curtis) 2 3
3. ITEMS REMOVED FROM CONSENT CALENDAR
4. PUBLIC COMMUNICATION
For matters that are not on the Council business agenda, speakers are allowed three (3) minutes to address the Council. The Town Council is prohibited from taking action on matters that are not listed on the public agenda. The Council may briefly respond for clarification and may refer the matter to the Town staff.
5. PUBLIC HEARINGS
For items that require a published legal notice and/or a mailed notice.
Public Hearing Procedure:
A. Staff Report
B. Mayor opens the hearing for public comment in the following order:
i. Project proponents (in favor of proposal)
ii. Project opponents (against proposal)
iii. Rebuttals – if requested
C. Mayor closes the hearing
D. Council discussion and vote
5a. p165 1. Conduct a public hearing to receive comment on the Consolidated Annual Performance and Evaluation Report (CAPER) for the Community Development Block Grant (CDBG) Program; and, 2. Authorize the Town Manager to submit the CAPER to the Department of Housing and Urban Development with any public comments received. (Recovery & Economic Development Director/Colette Curtis)
6. COUNCIL CONSIDERATION
Action items are presented by staff and the vote of each Council Member must be announced. A roll call vote is taken for each item on the action calendar.
Citizens are allowed three (3) minutes to comment on agenda items. 6a. p168 1. Hear a presentation on the In-Home Safe Units and the public communication plan for use of the Emergency Warning System Sirens; and,
2. Approved the revised Town of Paradise Emergency Notification System Guidelines; or 3. Provide additional direction to staff. (ROLL CALL VOTE) (Police Chief/Eric Reinbold; Recovery & Economic Development Director/Colette Curtis; Project Manager/Brian Solecki) 6b. p196 1. Consider adopting Resolution No. 2026-___, “ A Resolution of the Town Council of the Town of Paradise Establishing the Fire Apparatus Replacement Reserve Fund and Directing Assistance by Hire revenues and Proceeds from the Disposition of Town-Owned Fire Apparatus to the Fund”, and, 2. Approve the Fire Apparatus Replacement Reserve Fund Policy governing the use and administration of the Fund; or, 3. Provide alternate direction to Town staff. (Finance Director/Aimee Beleu) 6c. p203 1. Receive and file the second quarterly update to the 2025 Building Division Audit Corrective Action Plan, covering the period June 1 through August 31, 2026; and, 2. Affirm or provide alternative direction regarding the proposed implementation guardrails and ordinance refinements for the 3 Building Code Complaint process described in the quarterly update. (ROLL CALL VOTE) (Assistant Town Manager/Marc Mattox)
6d. p230 Consider authorizing the Town Manager to enter into an agreement with the North State Planning and Development Collective to produce an updated population estimate for the Town of Paradise. (ROLL CALL VOTE) (Recovery & Economic Development Director/Colette Curtis)
7. COUNCIL INITIATED ITEMS AND REPORTS
7a. p234 Consider approving a letter of support for AB2700. (CROWDER) 7b. p236 Council Members’ written reports on standing, external and ad hoc committee representation.
7c. Future Agenda Items
8. STAFF COMMUNICATION
8a. Town Manager Report
9. CLOSED SESSION - None
10. ADJOURNMENT
4 Town of Paradise
Council Agenda Summary
Date: September 8, 2026
Agenda Item: 1(e)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Monthly Recovery Update
LONG TERM
RECOVERY PLAN:
Yes
COUNCIL ACTION REQUESTED:
1. None
Background:
This report continues the Monthly Updates provided to keep the Town Council apprised of important developments related to the recovery of the Town of Paradise from the Camp Fire.
Included in this update are items related to recovery projects, advocacy economic recovery and development, communications and emergency operations.
In this report, red text denotes information that has changed from the last monthly update.
Analysis:
ECONOMC DEVELOPMENT
Community Development Block Grant – Disaster Recovery (CDBG DR) Workforce Development Compliance Consultant is now on board and advising Town and Partners. Town Staff and Partners completed the first trial program with Butte College in June and are working to refine intake and grant reporting requirements for a larger program launch.
Town Staff and partners are expanding programs and working on public outreach to increase participation and number of training programs offered. Town staff have been working with partners and the California Department of Housing and Community Development (HCD) to adapt the program to increase the number of participants and increase the number of training programs and services offered.
Economic Development Committee
The Economic Development Committee has been formed at the direction of Council. The Committee has given input on the Economic Development Strategy that is being drafted as part of the Long Term Community Recovery Plan. A business outreach plan is being developed which will include business outreach efforts every other month starting in October 2026.
5 Insurance Advocacy Committee
The Insurance Advocacy Committee has been formed at the direction of Council. Current areas of focus:
o Video for Insurance Company Executives/Underwriters
o Support for Butte County Fire Safe Council to increase Firewise Communities
RECOVERY
Community Development Block Grant Disaster Recovery Mitigation Planning Public Services (CDBG DR MIT PPS)
Long Term Community Recovery Plan Update
o Council approved selection of Urban Design Associates (UDA) to conduct the update and draft the plan.
o Economic Development Policies and programs are being developed with the public finance consultant Wildan.
o Council held a special meeting on August 10 to hear information on the Economic Development Strategy and Incentives Framework being prepared by Willdan. Council is giving feedback on this information for inclusion in the draft plan which will be presented to Council in November 2026. In Home Siren Units
o The Standard Agreement for funding for additional in-home siren units has been received, this will extend the number of units made available to residents with another 2,800 units available.
o Residents have begun receiving units from the Federal Emergency Management Agency (FEMA) funded grant, which are located at Town Hall for pickup. Public Services
o Staff is working with the California Department of Housing and Community Development (HCD) on the application for groups to become subrecipients to do mitigation work in Paradise.
o Applications are expected to be released in fall 2026.
Office of Land Use and Climate Innovation Grant
Town was awarded $739,680 through the Extreme Heat and Community Resilience Program
Funding will be used to create a Climate Resilience Plan which will identify prospective resiliency projects such as
o Community Evacuation/Cooling/Heating Centers
o Shade Tree Planting
o Fuels Reduction Projects
o Green space projects
Identified projects may be eligible for future implementation funds through the same grant source.
Public input is being gathered in conjunction with other planning events through the fall .
FEMA Hazard Mitigation Grant Project Updates
Category 4 Tree Removal Program
Project implementation is complete.
A full report is provided to Council on tonight’s agenda (September 2026) Emergency Warning System
6 All 21 Towers are standing and operational.
In-Home Safe Units are now available for pickup at Town Hall for Paradise residents.
Approximately 440 units have been distributed to the public. Safe Units have been updated to broadcast emergency alerts to nearby units. As the Town increases the number of units being used, the network will become stronger and more reliable.
Full grant closeout and documentation have been provided to CalOES as of March 2026.
Town staff is working with the contractor on additional testing and troubleshooting of SAFE Units to assure reliability.
Residential Ignition Resistant Retrofit Program
Program is nearing completion with September deadlines for work to be complete.
Closeout will begin on project with CalOES and FEMA in Fall 2026. Staff are working with California officials on a future retrofit program modeled after this program for additional homes utilizing Prop 4 funds. More information should be available toward the end of 2026.
Hazardous Fuels Reduction Program
Project is fully funded and moving forward.
Town staff are working with the selected contractor and implementing the project with completion at the end of September 2026.
Defensible Space Code Enforcement
Funding for the current grant will expire at the end of September 2026. In May a notice of intent was submitted to CalOES to request an additional three years of funding for this program. The NOI was accepted and a full application was submitted in September 2025. As of March 2026, CalOES has submitted the project to FEMA for consideration.
EMERGENCY MANAGEMENT
The Town’s EOC Policy Group met to discuss the Emergency Warning Siren activation policy. Any identified changes will be brought to Council for consideration and approval. An Emergency Operation Center Training for Town Staff was held in July 2026. The Town continues to work with Butte County to fully establish Smart911 as the replacement for CodeRed.
Implementation for VEOCI, our online EOC software, is ongoing.
FIRE PREVENTION
The Towns Defensible Space and Hazardous Fuels Management Program has reached 90% compliance across all 11,254 inspected parcels, a 4 point improvement over the 86% recorded compliance during the same period in 2025. This represents the strongest compliance rate achieved to date and reflects continued community participation in wildfire mitigation.
As of the current season, 10,312 parcels (approximately 90%) are confirmed compliant. 315 parcels remain non-compliant, and 627 parcels have received citations, with 1,590 7 citations issued in total. The citation compliance rate stands at 23% for the 2026 season, compared to 80% at the end of 2025, indicating and opportunity for increased follow-up and enforcement focus in the weeks ahead.
The Town's interactive Vegetation Management Map is publicly available at paradiseca.gov/fire/page/vegetation-management-map, allowing residents, property owners, and realtors to check parcel compliance status at any time. The program is delivering measurable, year-over-year progress in community risk reduction. The primary area of focus for the remainder of the season is improving the 2026 citation compliance rate, which is significantly lower than the same metric in 2025 and warrants targeted outreach and enforcement action.
Advocacy
Federal (The Ferguson Group – Federal Lobbyist)
o Town staff have worked closely with the Ferguson Group to pursue Congressional Directed Spending opportunities through the offices of Senator Padilla and Senator Schiff. The Town has been successful in these efforts previously. o Town staff continue to work with the Feguson Group to secure congressional funding allocation for the Town’s sewer project, originally made possible through the late Congressman LaMalfa’s office. This multi-year effort has focused on obtaining authorization from the US Army Corps of Engineers for an increment of work necessary to access appropriated funds.
State (Broad and Gusman – State Lobbyist)
o Town staff are working with Broad and Gusman to engage state legislators and leadership at the Contractor’s State License Board (CSLB) on legislative issues related to California’s owner-builder laws.
o Broad and Gusman is also assisting the Town in developing and advancing proposed reforms to owner-builder statuses for consideration during the next state legislative session.
o Recent legislative action on a bill regarding utilities and wildfire was brought to the Town’s attention by Broad and Gusman. The Town is working closely with their team on understanding any impacts and possible future action.
Financial Impact:
None.
8 Town of Paradise
Council Agenda Summary
Date: September 8, 2026
Agenda Item: 1(e)
ORIGINATED BY: Nadia Alekseev, Housing Program Manager
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Housing Recovery Update
LONG TERM
RECOVERY PLAN:
No
COUNCIL ACTION REQUESTED:
1. None
Background:
This report provides the Town Council with an update of Housing Activities. In this report, red text signifies new information from the last report.
Analysis:
Paradise has restored 43.99% of its pre-disaster housing stock, with 5,760 habitable homes currently available. This total includes 1,720 surviving homes and 4,040 newly completed homes with Certificates of Occupancy (up 22 since last month), compared to 13,091 housing units before the Camp Fire. Our total number of habitable dwellings does not include the number of mobile homes replaced in mobile home parks because those permits are issued by HCD instead of the Building Dept., but mobile homes in parks are included in the total number of pre-fire housing units. An estimate from tax data shows 144 mobile homes in parks, or 5,904 housing units in Paradise.
Town of Paradise Owner-Occupied Rehabilitation/Reconstruction Program ($12.5 million) This program helps homeowners rehabilitate or reconstruct their home. The CalHome-Disaster Assistance grant was set to expire at the end of 2025, but the Housing Department was granted a one-year extension to finish homes under construction. New applications to rebuild homes lost in the Camp Fire are no longer being accepted because it’s not feasible to complete a project before the expiration of the grant. Applications for essential home repairs on existing homes will continue to be accepted, funds for this activity are limited but do not have an expiration deadline. 74 homes completed
4 homes in construction
0 applications in process
Town of Paradise First-Time Homebuyer Program ($11 million) Helping to make homeownership more affordable. Applicants who were Disaster Affected can qualify under higher income limits, using 120% of Area Median Income (AMI). Other funding remains available to assist non-disaster affected households earning no more than 80% AMI. 121 households assisted
14 applications in process
9 CDBG-DR Multifamily Rental Housing Program ($84.7 million) Affordable rental housing. Seven (7) projects were funded; a total of 292 units. CHIP project- scattered site (4 units)
o Completed and Leased up in Spring of 2024
Eaglepointe- 5975 Maxwell Dr (43 units)
o Completed and Leased up in Spring of 2025. First annual monitoring will be performed in September.
Mayer Commons- 1561 Kay Ct (12 units)
o Completed and Leased up in June of 2026
Northwind Senior- 6983 Pentz Rd (21 units)
o Competed and Leased up in Fall of 2025. First annual monitoring will be performed in September.
Cypress Family- 1633 Cypress Ln (70 units)
o Completed and Leased up in April of 2026
Clark Rd- 6480 Clark Rd (72 units)
o Under construction, current stage is installing underground utilities and setting forms for foundations.
Cypress Senior (phase II)- 1633 Cypress ln (70 units) o Under construction, current stage is installing underground utilities and setting forms for foundations.
CDBG (2026 Annual Allocation=$54,430)
CDBG entitlement grants are on a 5-year plan cycle called the Consolidated Plan, and this year is the 2nd year in the current plan. The consolidated annual performance and evaluation report (CAPER) for the 2025 program year is drafted and presented for public hearing at tonight’s meeting (September 8, 2026). Upon Town Council approval, the CAPER along with any public comments received will be submitted to HUD.
HOME Infill New Construction ($700,000)
Create affordable housing for first-time homebuyers. The grant award letter was finally received from HCD in April of 2025. Program guidelines are complete and were adopted by Council. Staff is continuing to work-out funding logistics with HCD. Guidelines were approved by HCD and Authority to Use Grant Funds was signed by HCD and received by Town in June. An RFQ for general contractors and updated program guidelines are in today’s meeting agenda for Council approval.
Permanent Local Housing Allocation (PLHA) ($540,905)
Allocates matching funds to North Valley Housing Trust to administer for affordable housing projects.
A predevelopment loan of $400,000 has been made for the Cape Cod multi-family project ($200,000 of PLHA funds). Construction began earlier this year. $75,000 of PLHA funds was loaned to build a small, single-family home, which was finished and sold to a low-income Camp Fire survivor.
$112,000 has been committed to North Valley Housing Trust for another single-family residence development on Cottage Lane. Building permit was issued on 8/20/26. PLHA operates on a 5-year funding cycle similar to CDBG. The NOFA for the next cycle was released in July of 2026. PLHA allocates grant funds to CDBG entitlement cities, which the Housing staff will apply for, but will not have to compete with other communities to receive.
Financial Impact:
None.
10 1
TOWN OF PARADISE
Council Agenda Summary
Date: September 8, 2026
Agenda No. 1(e)
ORIGINATED BY: Marc Mattox, Public Works Director / Town Engineer REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Camp Fire Recovery Updates - Infrastructure
COUNCIL ACTION REQUESTED:
1. None, written monthly update only.
Background:
This report continues the Monthly Disaster Recovery Updates provided to keep the Town Council apprised of important developments related to the recovery of the Town of Paradise from the Camp Fire. Changes from the prior month’s reports are shown in red underline italics.
Analysis:
Road Rehabilitation
The Town of Paradise is endeavoring to pave nearly every public road mile by the end of 2026.
These projects are funded through Camp Fire Recovery Projects and are sequenced behind undergrounding of utilities and water service later replacements.
As of July 2026, the following paving progress can be reported:
Status Miles
Completed 72.10
Awarded/In-Progress 17.62
Planned Future 6.48
Total 96.19
On February 10, 2026, Paradise Town Council awarded two contracts to Knife River Construction for various roadway rehabilitation efforts scheduled for 2026.
Knife River Construction has started significant construction activities in various neighborhoods in Paradise. Work in general has involved roadway preparation including pulverization, grading and paving. Knife River Construction has made substantial progress on arterial roadways including night work along the Skyway corridor between Manchester Way and Bille Road, Upper Skyway between Wagstaff and Clark, Upper Clark between Wagstaff and Skyway in addition to Elliott Road between Skyway and Clark Road. Additional work remains along these roadways including second lift paving, signal improvements, striping, and various drainage/grading and punchlist items.
Separately, the Town of Paradise has informally bid and awarding the Skyway Maintenance Project approved in the 2026/2027 Budget to Knife River Construction. This project will make interim repairs to the road condition along Skyway between Bille Road and Wagstaff Road in 11 2
September 2026 while longer term initiatives such as roadway widening and undergrounding of utilities continue to progress in design and future construction.
The active construction map with current information can be found below and at www.paradiseworks.com
12 3
A map of all paving efforts completed and planned can be found on the Town’s website at www.townofparadise.com by visiting “News and Announcements” from the homepage.
Capital Project Updates
The Public Works Department, in an effort to provide additional communications on various projects, has launched a new website under its ParadiseWORKS banner. ParadiseWORKS Engineering Resiliency now hosts individual project pages for current information, project descriptions and schedules. The website can be viewed here:
https://www.townofparadise.com/pwe/page/paradiseworks-engineering-resiliency Below is an abbreviated Project List intended to show the current status of each project. More information on each project’s scope and schedule can be found at. Typical project progressions and timeframes are as follows:
(1) Environmental, 6-24 months
(2) Design, 12 months
(3) Right of Way, 6-12 months
(4) Construction, 6-24 months
Project ID Project Title Project Phase
Anticipated
Construction
Completion Year
7303 On-System Road Rehabilitation Construction 2026
7307 Neal Road Rehabilitation Design 2028
8407 Off-System Road Rehabilitation Construction 2026
9389 Pentz Pathway Project Phase II Design 2029
9390 Paradise ATP Gateway Project (Neal Road Class I) Environmental 2028 9394 Paradise Sewer Project Environmental -
9424 Skyway Link ATP (Bille to Wagstaff) Environmental 2028 9425 Upper Skyway Widening (Bille to Wagstaff) Environmental 2028 9426 Skyway/Pentz Intersection Improvements Right of Way 2028 9427 Pentz Road Widening Environmental 2029
9428 Roe Road Phase 1 (Edgewood to S. Libby) Environmental 2029 9434 Roe Road Phase 2 (S. Libby to Clark) Environmental 2029 9438 Private Road Identification Safety Project Design 2027 9439 Storm Drain Resiliency Project Phase 1 Environmental 2028 9440 Storm Drain Resiliency Project Phase 2 Environmental 2028 13 4
Funding Pursuits
Below is a listing of active funding pursuits related to infrastructure recovery and status updates:
Program Project Title Amount
Requested
Anticipated
Award
Notification
Notes
US Army Corps
of Engineers
Paradise
Sewer Project
$2,000,000 of
$50,000,000
authorization
TBD
Town of Paradise has
submitted its required Letter of
Intent to the USACE and
Community Directed Spending
Requests to Senators Padilla
and Schiff. This request will be
pending federal budget
appropriations for Fiscal Year
2027.
State Water
Board Septic to
Sewer CWSRF
Paradise
Sewer Project
$27,000,000-
$75,000,000 TBD
Work to revise the project
application package is
resuming with new project
direction selected.
Active
Transportation
Project Cycle 8
Oliver Curve
Pathway $13,000,000 December
2026
Application has been submitted
for formal consideration.
Determinations of award are
expected late 2026.
14 1
TOWN OF PARADISE
Council Agenda Summary
Date: September 8, 2026
Agenda No. 1(f)
ORIGINATED BY: Marc Mattox, Assistant Town Manager, Public Works Director REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Paradise Sewer Project Update
COUNCIL ACTION REQUESTED:
1. None, written monthly update only.
Background:
This report is a monthly effort to provide additional opportunity for public engagement on the status and next steps of the Paradise Sewer Project.
Analysis:
Since its incorporation in 1979, the Town of Paradise has sought a centralized wastewater system to address failing septic systems that impact public health, groundwater quality, and economic development. The need for sewer service became even more urgent following the 2018 Camp Fire, when the lack of modern wastewater infrastructure emerged as a major barrier to rebuilding businesses, housing, and community resiliency.
In 2022, the Town secured $30 million in CDBG-DR funds to begin pre-construction work, including environmental review, design, and permitting. To provide technical expertise, HDR was retained as Owner’s Agent, and a progressive design-build team was selected to develop a Basis of Design Report. That effort confirmed that a locally managed, phased sewer project was necessary to achieve both affordability and long-term community needs.
In January 2025, the Town Council formed a Sewer Project Ad Hoc Committee to evaluate local treatment and collection alternatives, with strong emphasis on public engagement and cost feasibility. The Committee, working alongside staff, HDR, and the Paradise Irrigation District, conducted community meetings, stakeholder workshops, site tours of other wastewater systems, and a technical alternatives analysis.
In August 2025, the Town Council unanimously voted to concur with the Paradise Sewer Project Ad Hoc Committee’s recommendation to direct a revised project description to include hybrid gravity/low-pressure collection system, aerated lagoon wastewater treatment, and percolation/evaporation pond effluent discharge.
Subsurface investigations at potential wastewater treatment facility (WWTF) sites conducted in the spring of 2026 concluded that percolation ponds were not feasible for the Sewer Project.
Additional desktop geotechnical evaluations indicated that these conditions were likely to be representative of other potential sites in and around Paradise. As a result, the Town sought to revise the project description to replace the lagoon and pond concept with a membrane bioreactor (MBR) treatment facility and surface water discharge of treated effluent. In June 2026, the Town Council voted to concur with the Paradise Sewer Project Ad Hoc Committee's recommendation to approve that revised project description.
15 2
Below is a summary of the main accomplishments in the last month and forecast for key activities in the month ahead:
Main Accomplishments
Began Financial Analysis of the updated project description. Ongoing development of the Subsequent Environmental Impact Report (EIR). Continued preliminary design of the Collection System. Pumped and Gravity Service Areas Workshop.
Resumed preliminary design of the WWTF under the revised project description. Ongoing evaluation of potential WWTF alternative sites.
Key Activities (One Month Look-Ahead)
Continue development of Financial Analysis of the updated project description. Continue developing the project description for the Subsequent EIR. Ongoing preliminary design of Collection System.
Ongoing preliminary design of the WWTF.
Ongoing evaluation of potential WWTF alternative sites. 16 MINUTES
PARADISE TOWN COUNCIL
SPECIAL MEETING – 3:00 PM – August 10, 2026
1. OPENING
The Special meeting of the Paradise Town Council was called to order by Mayor Crowder at 3:00 p.m. in the Council Chambers located at 5555 Skyway, Paradise, California who led the Pledge of Allegiance to the Flag of the United States of America.
COUNCIL MEMBERS PRESENT: Greg Bolin, Steve “Woody” Culleton, Heidi Lange, Ronald Lassonde, and Steve Crowder, Mayor.
COUNCIL MEMBERS ABSENT: None
STAFF PRESENT: Town Manager Jennifer Macarthy, Town Clerk/Elections Official Melanie Elvis, Assistant Town Manager Marc Mattox, Recovery & Economic Development Director Colette Curtis, and Deputy Town Clerk Jacquelyn Perazzo.
2. CONSIDERATION
2a. Barry Long from Urban Design Associates (UDA), and Molly McKay from Willdan led a working session to discuss Council’s vision and priorities regarding Economic Development and Incentives Policy as part of the Long-Term Community Recovery Plan Update. (420-25-011)
1. Jon Remalia supported making industrial business incentives the town’s number one priority.
2. Bill Kellogg spoke on the town’s need for a hospital, goats, orchards and fire protection.
3. ADJOURNMENT
Mayor Crowder adjourned the Council meeting at 4:56 p.m.
Date approved:
By: Attest:
___________________________ ________________________
Steve Crowder, Mayor Melanie Elvis, Town Clerk
17 MINUTES
PARADISE TOWN COUNCIL
SPECIAL MEETING – 5:00 PM – August 11, 2026
1. OPENING
The Special meeting of the Paradise Town Council was called to order by Mayor Crowder at 5:00 p.m. in the Council Chambers located at 5555 Skyway, Paradise, California who led the Pledge of Allegiance to the Flag of the United States of America.
COUNCIL MEMBERS PRESENT: Greg Bolin, Steve “Woody” Culleton, Heidi Lange, Ronald Lassonde, and Steve Crowder, Mayor.
COUNCIL MEMBERS ABSENT: None
STAFF PRESENT: Town Manager Jennifer Macarthy, Town Attorney Scott E. Huber, Town Clerk/Elections Official Melanie Elvis, Assistant Town Manager Marc Mattox and Information Technology Technician Travis Thompson.
At 5:01 p.m. Mayor Crowder announced that the Town Council would adjourn to Closed Session for the following items:
2. CLOSED SESSION
2a. Pursuant to Government Code section 54956.8, the Council will meet with Real Property Negotiators, Town Manager and Town Attorney, regarding the following properties: APN. 053-260-080, 053-260-096, 053-260-098, 050-450-008, 054-210-015, 054-210-016, 050-450-023, 053-260-027, 050- 052-078, 050-450-001, 050-082-023, 050-013-050. The negotiators for the property owner(s) are unknown at this time.
2b. Pursuant to Government Code section 54956.8, the Council will meet with Real Property Negotiators, Town Manager and Town Attorney, regarding the following properties: APN TBD. The negotiators for the property owner(s) are unknown at this time.
2c. Pursuant to Government Code section 54956.9(a), the Council will meet with the Town Manager, and the Town Attorney relating to existing condition: Scott, et al., v. Town of Paradise, Butte County Superior Court Case No. 25CV01702.
After reconvening from Closed Session at 6:00 p.m. Mayor Crowder announced that direction was given; no reportable action was taken.
18 3. ADJOURNMENT
Mayor Crowder adjourned the Council meeting at 6:01 p.m.
Date approved:
By: Attest:
___________________________ ________________________
Steve Crowder, Mayor Melanie Elvis, Town Clerk
19 TOWN COUNCIL
Meeting Minutes
6:00 PM – August 11, 2026
1. OPENING
The Regular meeting of the Paradise Town Council was called to order by Mayor Crowder at 6:01 p.m. in the Town Council Chamber located at 5555 Skyway, Paradise, California who led the Pledge of Allegiance to the Flag of the United States of America. An invocation was offered by Council Member Culleton.
COUNCIL MEMBERS PRESENT: Greg Bolin, Steve “Woody” Culleton, Heidi Lange, Ronald Lassonde and Steve Crowder, Mayor
COUNCIL MEMBERS ABSENT: None
STAFF PRESENT: Town Manager Jennifer Macarthy, Town Attorney Scott E. Huber, Town Clerk/Elections Official Melanie Elvis, Assistant Town Manager Marc Mattox, Community Development Director Susan Hartman, Community Development Director Tony Lindsey, Recovery and Economic Development Director Colette Curtis , Police Chief Eric Reinbold, Finance Director Aimee Beleu, Fire Chief Jason Finney, and Information Technology Technician, Travis Thompson.
1e. Community Development Director Tony Lindsey gave an update on Fire Prevention. (540-16-211)
1f. Fire Chief Jason Finney and Police Chief Eric Reinbold provided an overview of the July 16, 2026 Dudley Fire and evacuations. 1g. Camp Fire Recovery Updates - Written reports are included in the agenda packet. Colette Curtis, Recovery and Economic Development Director - recovery projects, advocacy, economic recovery and development, communications, emergency operations and Housing updates.
Marc Mattox, Assistant Town Manager -infrastructure updates. (110-60-062) 1h. Assistant Town Manager Marc Mattox provided an update on the Paradise Sewer Project. (960-70-009)
1. Cliff Jacobson spoke in favor of the step system.
2. Melissa Schuster spoke in favor of the step system and commented that not using the step system was a planning choice not a technical requirement.
20 2. CONSENT CALENDAR
MOTION by Lassonde, seconded by Bolin, approved consent calendar items 2a through 2e. Roll call vote was unanimous.
2a. Approved minutes of the July 14, 2026 Special and Regular Town Council meetings and the July 29, 2026 Special Town Council meeting. 2b. Approved July 2026 Cash Disbursements in the amount of $11,239,716.51. (310-10-035)
2c. Adopted Resolution No. 2026-52, “A Resolution of the Town Council of the Town of Paradise approving an application for funding and the execution of a grant agreement and any amendments thereto from the 2023-2024 funding year of the State CDBG Mitigation Resilience Infrastructure (MITRIP) program.” (710-10-106, 950-40-079) 2d. Reviewed and filed the 4th Quarter Investment Report for the Fiscal Year Ending June 30, 2026. (360-30-006)
2e. Adopted Resolution No. 2026-53, “A Resolution of the Town Council of the Town of Paradise Creating a Guideline for Transactions with the Town Involving U.S. Coins and Federal Reserve Notes.” (310-60-001, 395-20-045)
3. ITEMS REMOVED FROM CONSENT CALENDAR - None
4. PUBLIC COMMUNICATION
1. Melissa Schuster spoke on community participation.
2. J.T. Martin spoke in favor of releasing the full building report audit.
3. Monica Huchro spoke on Brown Act violations.
4. Carrie Max praised the Town coming together and shared that she participated in a rally in support of AB2700.
5. PUBLIC HEARINGS - None
6. COUNCIL CONSIDERATION
6a. Recovery & Economic Development Director Colette Curtis introduced Erik Gustafson from the City of Chico and provided an update on the status of the Chico Regional Airport and proposed contract amendment.
MOTION by Lassonde, seconded by Bolin, approved the first amendment to the agreement between the City of Chico, the Town of Paradise and Explore Butte County to extend the original agreement for $75,000 towards the Chico Regional Airport Revenue Guarantee Fund until January 1, 2028, with biannual updates. Roll call vote was unanimous. (510-20-423)
21 6b. Housing Program Manager Nadia Alekseev provided an overview of the Multi-Family Housing Projects on Maxwell Drive, Cypress Lane, Kathy Court and Pentz Road.
MOTION by Bolin, seconded by Culleton, adopted the following resolutions:
1.Resolution No. 2026-54, “A Resolution of the Town Council of the Town of Paradise Acknowledging the Project Completion of the Eaglepointe Rental Housing Project, a 43- unit Affordable Large Family Housing Complex located at 5975 Maxwell Dr., (APN: 053-380-045-000).” (710-10-095)
2. PULLED FROM THE AGENDA
3. PULLED FROM THE AGENDA
4. Resolution No. 2026-55, “A Resolution of the Town Council of the Town of Paradise Acknowledging the Project Completion of the Northwind Rental Housing Project, a 21- unit Affordable Senior Housing Complex located at 6983 Pentz Rd., (APN: 050-082-023-000).” Roll call vote was unanimous. (710-10-095)
6c. Finance Director Aimee Beleu presented the proposed format for the Monthly Financial Report.
MOTION by Lange, seconded by Culleton, reviewed and filed the July 2026 Monthly Financial Report. Roll call vote was unanimous. Council concurred that the financial reports should include the previous year’s actuals, the current year’s estimated budget and the current year’s actuals, explore the inclusion of a position control report and any potential changes, as well as transitioning from monthly to quarterly reporting. (385-20-056) 6d. Town Clerk Melanie Elvis presented an overview of the League of California Cities Annual Conference voting delegation requirements.
MOTION by Bolin, seconded by Lange, appointed Town Manager Jennifer Macarthy as the voting delegate and Assistant Town Manager Marc Mattox as the alternate for the League of California Cities Annual Conference. Roll call vote was unanimous. (120-10-009)
7. COUNCIL INITIATED ITEMS AND REPORTS
7a. Council Initiated Items:
7a1. Council discussed options to enhance the aesthetics of Paradise's gateways including damaged signs and temporary fences. Council provided direction to staff to return with a framework for establishing contact with landowners, including information on the number of remaining signs and temporary fences, as well as recommendations on which portions of Clark and/or Skyway should be involved based on volume.
22 7a2. Council discussed approving a letter of support for Goats in Paradise, Inc. Council did not provide consensus to approve the letter of support and asked staff to provide additional details on history of compliance.
7b. Council Members’ written reports on standing, external and ad hoc committee representation were included in the agenda packet. Mayor Crowder provided an update on AB2700.
7c. Future Agenda Items:
1. Discuss creating a “Life After the Fire” video for marketing and public outreach. (CULLETON)
8. STAFF COMMUNICATION
8a. Town Manager Report - None
9. CLOSED SESSION - None
10. ADJOURNMENT
Mayor Crowder closed the meeting at 8:50 p.m.
Date approved:
By: Attest:
__________________________ __________________________
Steve Crowder, Mayor Melanie Elvis, Town Clerk
23 TOWN OF PARADISE
CASH DISBURSEMENTS REPORT
FOR THE PERIOD OF
August 1, 2026 - August 31, 2026
24 CASH DISBURSEMENTS REPORT
August 1, 2026 - August 31, 2026
Check Date Pay Period End Description Amount Total
8/14/2026 8/9/2026 Net Payroll - Direct Deposits and Checks $ 310,593.33 8/28/2026 8/23/2026 Net Payroll - Direct Deposits and Checks $ 302,160.28 $ 612,753.61
Accounts Payable
Payroll Vendors: Taxes, PERS, Dues, Insurance, Etc. $ 564,729.18 Operations Vendors: Supplies, Contracts, Utilities, Etc. $3,410,973.45 TOTAL CASH DISBURSEMENTS ACCOUNTS PAYABLE $ 3,975,702.63 GRAND TOTAL CASH DISBURSEMENTS $ 4,588,456.24
APPROVED BY:
Aimee Beleu - Finance Director/Town Treasurer
APPROVED BY:
Jennifer Macarthy - Town Manager
25 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
AP TCB - General Checking
Check
92063 08/05/2026 Reconciled 08/11/2026 Accounts Payable 4LEAF, Inc $664.00 $664.00 $0.00 92064 08/05/2026 Reconciled 08/19/2026 Accounts Payable A Stitch Above Embroidery & Shirt Printing
$1,006.14 $1,006.14 $0.00
92065 08/05/2026 Reconciled 08/12/2026 Accounts Payable Adobe, Inc. $11,034.14 $11,034.14 $0.00 92066 08/05/2026 Reconciled 08/11/2026 Accounts Payable ADVANCED DOCUMENT
CONCEPTS
$190.86 $190.86 $0.00
92067 08/05/2026 Reconciled 08/11/2026 Accounts Payable AIRGAS SAFETY, INC. $284.05 $284.05 $0.00 92068 08/05/2026 Reconciled 08/13/2026 Accounts Payable Arbor Pros, LLC $87,647.06 $87,647.06 $0.00 92069 08/05/2026 Reconciled 08/11/2026 Accounts Payable AT&T $87.46 $87.46 $0.00 92070 08/05/2026 Reconciled 08/11/2026 Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $103.50 $103.50 $0.00 92071 08/05/2026 Reconciled 08/12/2026 Accounts Payable AT&T/CALNET3 - REPEATER LINES $198.19 $198.19 $0.00 92072 08/05/2026 Reconciled 08/12/2026 Accounts Payable AT&T/CALNET3 - COMMUNITY PARK
$30.57 $30.57 $0.00
92073 08/05/2026 Reconciled 08/12/2026 Accounts Payable AT&T/CALNET3 - Summary $30.62 $30.62 $0.00 92074 08/05/2026 Reconciled 08/12/2026 Accounts Payable AT&T/CALNET3 - TH/FDPD FIBER LINES
$1,063.86 $1,063.86 $0.00
92075 08/05/2026 Reconciled 08/10/2026 Accounts Payable Broad & Gusman $4,000.00 $4,000.00 $0.00 92076 08/05/2026 Reconciled 08/11/2026 Accounts Payable Bureau Veritas North America, Inc $51,170.83 $51,170.83 $0.00 92077 08/05/2026 Reconciled 08/14/2026 Accounts Payable Butte County Construction Inc $13,422.00 $13,422.00 $0.00 92078 08/05/2026 Reconciled 08/13/2026 Accounts Payable California Concrete LLC $1,880.00 $1,880.00 $0.00 92079 08/05/2026 Reconciled 08/18/2026 Accounts Payable CALIFORNIA POLICE CHIEFS
ASSOCIATION
$559.00 $559.00 $0.00
92080 08/05/2026 Reconciled 08/12/2026 Accounts Payable Chico State Enterprises $7,875.00 $7,875.00 $0.00 92081 08/05/2026 Reconciled 08/11/2026 Accounts Payable Cole Huber LLP $22,292.93 $22,292.93 $0.00 92082 08/05/2026 Reconciled 08/12/2026 Accounts Payable CONTINENTAL BATTERY COMPANY $178.86 $178.86 $0.00 92083 08/05/2026 Reconciled 08/17/2026 Accounts Payable Corning Ford Inc. $128,444.78 $128,444.78 $0.00 92084 08/05/2026 Reconciled 08/11/2026 Accounts Payable Crossfire Tree & Vegetation Services $10,300.00 $10,300.00 $0.00 92085 08/05/2026 Reconciled 08/12/2026 Accounts Payable Dokken Engineering, Inc. $271,124.27 $271,124.27 $0.00 92086 08/05/2026 Reconciled 08/19/2026 Accounts Payable ENTENMANN-ROVIN COMPANY $282.55 $282.55 $0.00 92087 08/05/2026 Reconciled 08/14/2026 Accounts Payable EXPERTS IN YOUR HOME $119,208.75 $119,208.75 $0.00 92088 08/05/2026 Reconciled 08/17/2026 Accounts Payable First American Title Company - Sacramento
$100,000.00 $100,000.00 $0.00
92089 08/05/2026 Reconciled 08/11/2026 Accounts Payable FOOTHILL MILL & LUMBER $102.74 $102.74 $0.00 92090 08/05/2026 Reconciled 08/13/2026 Accounts Payable Free Style Embroidery $87.68 $87.68 $0.00 92091 08/05/2026 Reconciled 08/12/2026 Accounts Payable GREAT AMERICA LEASING CORP. $304.52 $304.52 $0.00 92092 08/05/2026 Reconciled 08/12/2026 Accounts Payable GREEN RIDGE LANDSCAPING $6,765.00 $6,765.00 $0.00 92093 08/05/2026 Reconciled 08/18/2026 Accounts Payable Hawkins Delafield & Wood LLP $11,812.50 $11,812.50 $0.00 92094 08/05/2026 Reconciled 08/13/2026 Accounts Payable HDR Engineering, Inc $84,012.55 $84,012.55 $0.00 92095 08/05/2026 Reconciled 08/12/2026 Accounts Payable HLP, INC / CHAMELEON
SOFTWARE PRODUCTS
$7.00 $7.00 $0.00
92096 08/05/2026 Reconciled 08/11/2026 Accounts Payable INTERSTATE OIL COMPANY $320.28 $320.28 $0.00 92097 08/05/2026 Reconciled 08/13/2026 Accounts Payable INTERSTATE SALES $921.25 $921.25 $0.00 92098 08/05/2026 Reconciled 08/11/2026 Accounts Payable JOHNNY ON THE SPOT
PORTABLES
$399.00 $399.00 $0.00
92099 08/05/2026 Reconciled 08/12/2026 Accounts Payable JOURNYX, INC. $10,500.00 $10,500.00 $0.00 92100 08/05/2026 Reconciled 08/10/2026 Accounts Payable Kazemi Construction LLC $14,200.00 $14,200.00 $0.00 92101 08/05/2026 Reconciled 08/11/2026 Accounts Payable L.N. CURTIS & SONS $1,545.48 $1,545.48 $0.00 92102 08/05/2026 Reconciled 08/12/2026 Accounts Payable LEAF Capital Funding LLC $143.55 $143.55 $0.00 92103 08/05/2026 Reconciled 08/18/2026 Accounts Payable Mercy Housing California 113, L.P. $44,923.59 $44,923.59 $0.00 user: Aimee Beleu Pages: 1 of 6 Monday, August 31, 2026 Payment Register
TOWN OF PARADISE
From Payment Date: 8/1/2026 - To Payment Date: 8/31/2026 26 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
92104 08/05/2026 Reconciled 08/07/2026 Accounts Payable MID VALLEY TITLE & ESCROW $92,000.00 $92,000.00 $0.00 92105 08/05/2026 Open Accounts Payable MID VALLEY TITLE & ESCROW $100,000.00 92106 08/05/2026 Reconciled 08/14/2026 Accounts Payable MID VALLEY TITLE & ESCROW $24,747.00 $24,747.00 $0.00 92107 08/05/2026 Reconciled 08/06/2026 Accounts Payable Moore Fencing Inc. $1,260.00 $1,260.00 $0.00 92108 08/05/2026 Reconciled 08/06/2026 Accounts Payable MORGAN TREE SERVICE $7,400.00 $7,400.00 $0.00 92109 08/05/2026 Reconciled 08/12/2026 Accounts Payable MOTOROLA SOLUTIONS, INC. $13,500.00 $13,500.00 $0.00 92110 08/05/2026 Reconciled 08/12/2026 Accounts Payable MOTOROLA SOLUTIONS, INC. $29,555.03 $29,555.03 $0.00 92111 08/05/2026 Reconciled 08/12/2026 Accounts Payable MOTOROLA SOLUTIONS, INC. $30,049.42 $30,049.42 $0.00 92112 08/05/2026 Reconciled 08/11/2026 Accounts Payable N&S North, INC $582.54 $582.54 $0.00 92113 08/05/2026 Reconciled 08/11/2026 Accounts Payable NORTHGATE PETROLEUM CO $10,765.20 $10,765.20 $0.00 92114 08/05/2026 Reconciled 08/11/2026 Accounts Payable O'REILLY AUTO PARTS $261.71 $261.71 $0.00 92115 08/05/2026 Reconciled 08/13/2026 Accounts Payable OFFICE DEPOT ACCT#36233169 $500.67 $500.67 $0.00 92116 08/05/2026 Reconciled 08/11/2026 Accounts Payable OROVILLE FORD $286.80 $286.80 $0.00 92117 08/05/2026 Reconciled 08/07/2026 Accounts Payable PARADISE IRRIGATION DIST $2,511.69 $2,511.69 $0.00 92118 08/05/2026 Reconciled 08/11/2026 Accounts Payable Regional Government Services Authority
$11,268.50 $11,268.50 $0.00
92119 08/05/2026 Reconciled 08/11/2026 Accounts Payable RENTAL GUYS - CHICO $487.86 $487.86 $0.00 92120 08/05/2026 Reconciled 08/11/2026 Accounts Payable Rural Community Assistance Corporation
$95,499.09 $95,499.09 $0.00
92121 08/05/2026 Reconciled 08/17/2026 Accounts Payable Sigler Pest Control $50.00 $50.00 $0.00 92122 08/05/2026 Reconciled 08/13/2026 Accounts Payable SKYNBYRD CORPORATION $840.80 $840.80 $0.00 92123 08/05/2026 Reconciled 08/11/2026 Accounts Payable Spherion Staffing $6,563.62 $6,563.62 $0.00 92124 08/05/2026 Reconciled 08/10/2026 Accounts Payable T and S DVBE Inc. $18,902.10 $18,902.10 $0.00 92125 08/05/2026 Reconciled 08/10/2026 Accounts Payable Tahoe Pure Water Co. $190.35 $190.35 $0.00 92126 08/05/2026 Reconciled 08/11/2026 Accounts Payable THOMAS ACE HARDWARE $210.76 $210.76 $0.00 92127 08/05/2026 Reconciled 08/11/2026 Accounts Payable THOMAS ACE HARDWARE - FIRE DEPT.
$244.66 $244.66 $0.00
92128 08/05/2026 Reconciled 08/14/2026 Accounts Payable THRIFTY ROOTER $620.09 $620.09 $0.00 92129 08/05/2026 Reconciled 08/12/2026 Accounts Payable Tri Flame Propane $122.39 $122.39 $0.00 92130 08/05/2026 Reconciled 08/11/2026 Accounts Payable TUCKER PEST CONTROL INC $115.00 $115.00 $0.00 92131 08/05/2026 Reconciled 08/11/2026 Accounts Payable TYLER TECHNOLOGIES, INC. $175.00 $175.00 $0.00 92132 08/05/2026 Reconciled 08/11/2026 Accounts Payable UNICO Engineering, Inc. $149,861.25 $149,861.25 $0.00 92133 08/05/2026 Reconciled 08/13/2026 Accounts Payable Valley Lock & Safe $34.41 $34.41 $0.00 92134 08/05/2026 Reconciled 08/13/2026 Accounts Payable WILSON PRINTING $67.32 $67.32 $0.00 92135 08/05/2026 Open Accounts Payable Schwartz, Michael $294.98 92136 08/06/2026 Reconciled 08/06/2026 Accounts Payable TOP CONFIDENTIAL MID MGMT
ASSOCIATION
$110.00 $110.00 $0.00
92137 08/11/2026 Open Accounts Payable Aflac $57.98
92138 08/11/2026 Reconciled 08/28/2026 Accounts Payable Met Life $14,577.38 $14,577.38 $0.00 92139 08/11/2026 Open Accounts Payable OPERATING ENGINEERS $1,440.00 92140 08/11/2026 Open Accounts Payable PARADISE POLICE OFFICERS
ASSOCIATION
$2,533.61
92141 08/11/2026 Reconciled 08/28/2026 Accounts Payable SUN LIFE INSURANCE $8,928.52 $8,928.52 $0.00 92142 08/11/2026 Open Accounts Payable SUPERIOR VISION SVC INC $936.09 92143 08/11/2026 Open Accounts Payable TOP CONFIDENTIAL MID MGMT
ASSOCIATION
$180.00
92144 08/18/2026 Reconciled 08/26/2026 Accounts Payable ICMA 457 - MissionSquare $5,718.14 $5,718.14 $0.00 92145 08/18/2026 Open Accounts Payable Oregon Department of Revenue $483.00 92146 08/18/2026 Open Accounts Payable STATE DISBURSEMENT UNIT $194.76 92147 08/18/2026 Open Accounts Payable STATE OF CALIFORNIA FRANCHISE
TAX BOARD
$594.05
user: Aimee Beleu Pages: 2 of 6 Monday, August 31, 2026 Payment Register
TOWN OF PARADISE
From Payment Date: 8/1/2026 - To Payment Date: 8/31/2026 27 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
92148 08/20/2026 Reconciled 08/27/2026 Accounts Payable 3 CORE, INC. $5,500.00 $5,500.00 $0.00 92149 08/20/2026 Open Accounts Payable ACCESS INFORMATION
PROTECTED
$129.06
92150 08/20/2026 Reconciled 08/26/2026 Accounts Payable ADVANCED DOCUMENT
CONCEPTS
$4.80 $4.80 $0.00
92151 08/20/2026 Reconciled 08/24/2026 Accounts Payable Alliance For Workforce Development, Inc.
$6,789.98 $6,789.98 $0.00
92152 08/20/2026 Reconciled 08/26/2026 Accounts Payable Archuleta, Derek, S $19.00 $19.00 $0.00 92153 08/20/2026 Open Accounts Payable Asbury Environmental Services $462.69 92154 08/20/2026 Open Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $134.53 92155 08/20/2026 Reconciled 08/26/2026 Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $269.05 $269.05 $0.00 92156 08/20/2026 Open Accounts Payable Biometrics4ALL, Inc $71.50 92157 08/20/2026 Reconciled 08/28/2026 Accounts Payable BorderLAN Cybersecurity $3,771.10 $3,771.10 $0.00 92158 08/20/2026 Open Accounts Payable BPR Consulting Group $18,930.02 92159 08/20/2026 Reconciled 08/27/2026 Accounts Payable Bureau Veritas North America, Inc $68,090.21 $68,090.21 $0.00 92160 08/20/2026 Open Accounts Payable Butte County Office of Emergency Management
$17,350.53
92161 08/20/2026 Open Accounts Payable BUTTE-GLENN COMMUNITY
COLLEGE DISTRICT
$46,250.25
92162 08/20/2026 Open Accounts Payable Clark Road Apartments LP $637,551.65 92163 08/20/2026 Open Accounts Payable Creative Composition Inc $553.76 92164 08/20/2026 Open Accounts Payable DATCO SERVICES CORPORATION $755.55 92165 08/20/2026 Open Accounts Payable ENLOE MEDICAL CENTER, INC. $1,248.00 92166 08/20/2026 Reconciled 08/24/2026 Accounts Payable ESPLANADE OFFICE $2,229.87 $2,229.87 $0.00 92167 08/20/2026 Reconciled 08/28/2026 Accounts Payable FIDELITY NATIONAL TITLE
COMPANY - CHICO
$100,000.00 $100,000.00 $0.00
92168 08/20/2026 Open Accounts Payable Flex Technology Group LLC $5,401.22 92169 08/20/2026 Reconciled 08/24/2026 Accounts Payable GEORGES 2.0 $1,143.38 $1,143.38 $0.00 92170 08/20/2026 Reconciled 08/24/2026 Accounts Payable GREEN RIDGE LANDSCAPING $450.00 $450.00 $0.00 92171 08/20/2026 Open Accounts Payable Guardian Alliance Technologies Inc. $90.00 92172 08/20/2026 Reconciled 08/27/2026 Accounts Payable HDR Engineering, Inc $31,542.46 $31,542.46 $0.00 92173 08/20/2026 Open Accounts Payable INTERSTATE OIL COMPANY $440.96 92174 08/20/2026 Open Accounts Payable Interwest Consulting Group, Inc. $550.00 92175 08/20/2026 Reconciled 08/27/2026 Accounts Payable Jennifer Arbuckle $3,875.00 $3,875.00 $0.00 92176 08/20/2026 Reconciled 08/27/2026 Accounts Payable KEN'S PARADISE HITCH &
WELDING
$608.73 $608.73 $0.00
92177 08/20/2026 Reconciled 08/26/2026 Accounts Payable Kimball Midwest $341.12 $341.12 $0.00 92178 08/20/2026 Reconciled 08/27/2026 Accounts Payable KOEFRAN INDUSTRIES $1,200.00 $1,200.00 $0.00 92179 08/20/2026 Open Accounts Payable L.N. CURTIS & SONS $28.63 92180 08/20/2026 Open Accounts Payable LACO Associates $27,033.50 92181 08/20/2026 Open Accounts Payable Law Office of Gregory P. Einhorn $240.00 92182 08/20/2026 Open Accounts Payable LIFE ASSIST INC $196.78 92183 08/20/2026 Open Accounts Payable Meyers Police K-9 Training, LLC $1,200.00 92184 08/20/2026 Reconciled 08/26/2026 Accounts Payable MUNIMETRIX SYSTEMS CORP $79.98 $79.98 $0.00 92185 08/20/2026 Reconciled 08/24/2026 Accounts Payable N&S North, INC $227.39 $227.39 $0.00 92186 08/20/2026 Open Accounts Payable NAPA Auto Parts $78.87 92187 08/20/2026 Open Accounts Payable North State Tire Co. Inc. $1,301.48 92188 08/20/2026 Open Accounts Payable Northern California Glove & Safety $188.53 92189 08/20/2026 Reconciled 08/26/2026 Accounts Payable NORTHERN RECYCLING & WASTE SERVICES, INC.
$1,894.40 $1,894.40 $0.00
92190 08/20/2026 Open Accounts Payable O'REILLY AUTO PARTS $178.58 user: Aimee Beleu Pages: 3 of 6 Monday, August 31, 2026 Payment Register
TOWN OF PARADISE
From Payment Date: 8/1/2026 - To Payment Date: 8/31/2026 28 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
92191 08/20/2026 Reconciled 08/27/2026 Accounts Payable OFFICE DEPOT ACCT#36233169 $625.32 $625.32 $0.00 92192 08/20/2026 Reconciled 08/24/2026 Accounts Payable PARADISE RIDGE CHAMBER OF
COMMERCE
$100,000.00 $100,000.00 $0.00
92193 08/20/2026 Open Accounts Payable PlaceWorks Inc $52,949.93 92194 08/20/2026 Open Accounts Payable Selman & Company LLC $39.20 92195 08/20/2026 Reconciled 08/21/2026 Accounts Payable Sierra Nevada Construction $15,000.00 $15,000.00 $0.00 92196 08/20/2026 Open Accounts Payable SKYNBYRD CORPORATION $755.00 92197 08/20/2026 Reconciled 08/24/2026 Accounts Payable Tahoe Pure Water Co. $66.80 $66.80 $0.00 92198 08/20/2026 Open Accounts Payable The Ferguson Group $5,000.00 92199 08/20/2026 Reconciled 08/26/2026 Accounts Payable The Lamar Companies $975.00 $975.00 $0.00 92200 08/20/2026 Open Accounts Payable The Pape' Group INC $808.86 92201 08/20/2026 Reconciled 08/26/2026 Accounts Payable THOMAS ACE HARDWARE $50.25 $50.25 $0.00 92202 08/20/2026 Reconciled 08/26/2026 Accounts Payable THOMAS ACE HARDWARE - FIRE DEPT.
$42.82 $42.82 $0.00
92203 08/20/2026 Reconciled 08/27/2026 Accounts Payable TransUnion Risk and Alternative Data Solutions Inc
$254.00 $254.00 $0.00
92204 08/20/2026 Reconciled 08/26/2026 Accounts Payable ULINE $122.48 $122.48 $0.00 92205 08/20/2026 Reconciled 08/26/2026 Accounts Payable Urban Design Associates. LTD $21,500.10 $21,500.10 $0.00 92206 08/20/2026 Open Accounts Payable Urban Design Solar $1,907.65 92207 08/20/2026 Reconciled 08/27/2026 Accounts Payable Voiance Language Services, LLC $6.21 $6.21 $0.00 92208 08/20/2026 Reconciled 08/28/2026 Accounts Payable Waste Tire Products R & D $2,290.00 $2,290.00 $0.00 92209 08/20/2026 Reconciled 08/27/2026 Accounts Payable Arbor Pros, LLC $92,866.07 $92,866.07 $0.00 92210 08/20/2026 Open Accounts Payable AT&T/CALNET3 - Summary $3,393.89 92211 08/20/2026 Reconciled 08/24/2026 Accounts Payable Bear Electrical Systems, Inc $1,520.00 $1,520.00 $0.00 92212 08/20/2026 Reconciled 08/24/2026 Accounts Payable BUTTE CO AIR QUALITY
MANAGEMENT DISTRICT
$2,647.00 $2,647.00 $0.00
92213 08/20/2026 Open Accounts Payable BUTTE CO RECORDER $355.50 92214 08/20/2026 Open Accounts Payable Butte County Public Health Dept - Health Clinic
$3,083.00
92215 08/20/2026 Reconciled 08/24/2026 Accounts Payable California Concrete LLC $3,732.50 $3,732.50 $0.00 92216 08/20/2026 Reconciled 08/27/2026 Accounts Payable DEPARTMENT OF FORESTRY &
FIRE PROTECTION
$100.00 $100.00 $0.00
92217 08/20/2026 Reconciled 08/27/2026 Accounts Payable Eagle Security Systems $952.77 $952.77 $0.00 92218 08/20/2026 Reconciled 08/27/2026 Accounts Payable Elam IT, Jon, Elam $2,027.91 $2,027.91 $0.00 92219 08/20/2026 Open Accounts Payable EXPERTS IN YOUR HOME $50,208.75 92220 08/20/2026 Open Accounts Payable Explore Butte County $7,621.63 92221 08/20/2026 Voided Incorrect Vendor 08/24/2026 Accounts Payable Flint Construction $22,813.50 92222 08/20/2026 Open Accounts Payable FOOTHILL MILL & LUMBER $39.67 92223 08/20/2026 Reconciled 08/24/2026 Accounts Payable GREEN RIDGE LANDSCAPING $164.68 $164.68 $0.00 92224 08/20/2026 Open Accounts Payable James or Lavenia Riotto $300.00 92225 08/20/2026 Reconciled 08/26/2026 Accounts Payable LEAF Capital Funding LLC $130.50 $130.50 $0.00 92226 08/20/2026 Voided Incorrect Amount 08/20/2026 Accounts Payable MAG Construction LLC $23,715.00 92227 08/20/2026 Reconciled 08/21/2026 Accounts Payable Morgan Ridge Construction, Inc. $16,361.75 $16,361.75 $0.00 92228 08/20/2026 Reconciled 08/24/2026 Accounts Payable NCCSIF TREASURER $2,600.00 $2,600.00 $0.00 92229 08/20/2026 Open Accounts Payable NORTHERN RECYCLING & WASTE SERVICES, INC.
$7,402.92
92230 08/20/2026 Reconciled 08/24/2026 Accounts Payable NORTHGATE PETROLEUM CO $11,293.81 $11,293.81 $0.00 92231 08/20/2026 Reconciled 08/24/2026 Accounts Payable R B SPENCER INC $2,750.00 $2,750.00 $0.00 92232 08/20/2026 Open Accounts Payable RE CONSTRUCTION $284.34 92233 08/20/2026 Open Accounts Payable RENTAL GUYS - CHICO $7,682.00 92234 08/20/2026 Open Accounts Payable Shelby's Pest Control, Inc. $80.00 user: Aimee Beleu Pages: 4 of 6 Monday, August 31, 2026 Payment Register
TOWN OF PARADISE
From Payment Date: 8/1/2026 - To Payment Date: 8/31/2026 29 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
92235 08/20/2026 Open Accounts Payable Stratti $4,958.25 92236 08/20/2026 Open Accounts Payable THOMAS ACE HARDWARE - ENG.
DEPT.
$1,877.83
92237 08/20/2026 Reconciled 08/27/2026 Accounts Payable TYLER TECHNOLOGIES, INC. $14,638.50 $14,638.50 $0.00 92238 08/20/2026 Reconciled 08/26/2026 Accounts Payable WILSON PRINTING $235.98 $235.98 $0.00 92239 08/20/2026 Reconciled 08/21/2026 Accounts Payable MAG Construction LLC $23,710.00 $23,710.00 $0.00 92240 08/24/2026 Open Accounts Payable Flint Construction $9,036.00 92241 08/24/2026 Open Accounts Payable Flintbuilt Construction DBA: Elite Window Systems
$13,777.50
92242 08/26/2026 Reconciled 08/28/2026 Accounts Payable FIDELITY NATIONAL TITLE
COMPANY - CHICO
$5,546.00 $5,546.00 $0.00
92243 08/26/2026 Voided/Reissued Printer Error 08/26/2026 Accounts Payable MID VALLEY TITLE & ESCROW $100,000.00 92244 08/26/2026 Open Accounts Payable MID VALLEY TITLE & ESCROW $100,000.00 92245 08/28/2026 Open Accounts Payable ICMA 457 - MissionSquare $6,074.71 92246 08/28/2026 Open Accounts Payable Oregon Department of Revenue $199.00 92247 08/28/2026 Open Accounts Payable STATE DISBURSEMENT UNIT $194.76 Type Check Totals: 185 Transactions $3,379,018.23 $2,087,378.78 $0.00 EFT
620 08/05/2026 Reconciled 08/07/2026 Accounts Payable Amazon Capital Services $2,202.90 $2,202.90 $0.00 621 08/05/2026 Reconciled 08/12/2026 Accounts Payable COMCAST CABLE $17.17 $17.17 $0.00 622 08/05/2026 Reconciled 08/12/2026 Accounts Payable COMCAST CABLE $184.30 $184.30 $0.00 623 08/05/2026 Reconciled 08/12/2026 Accounts Payable PACIFIC GAS & ELECTRIC $476.10 $476.10 $0.00 624 08/05/2026 Reconciled 08/12/2026 Accounts Payable PACIFIC GAS & ELECTRIC $1,224.43 $1,224.43 $0.00 625 08/05/2026 Reconciled 08/12/2026 Accounts Payable PACIFIC GAS & ELECTRIC $355.63 $355.63 $0.00 626 08/05/2026 Reconciled 08/12/2026 Accounts Payable PACIFIC GAS & ELECTRIC $118.63 $118.63 $0.00 627 08/05/2026 Reconciled 08/12/2026 Accounts Payable PACIFIC GAS & ELECTRIC $161.30 $161.30 $0.00 628 08/05/2026 Reconciled 08/12/2026 Accounts Payable PACIFIC GAS & ELECTRIC $24.66 $24.66 $0.00 629 08/05/2026 Reconciled 08/12/2026 Accounts Payable PACIFIC GAS & ELECTRIC $11.01 $11.01 $0.00 630 08/05/2026 Reconciled 08/12/2026 Accounts Payable T MOBILE USA, INC. $2,121.22 $2,121.22 $0.00 631 08/05/2026 Reconciled 08/07/2026 Accounts Payable Tri Counties Bank $445.00 $445.00 $0.00 632 08/11/2026 Reconciled 08/12/2026 Accounts Payable CALPERS $201,735.66 $201,735.66 $0.00 633 08/17/2026 Reconciled 08/17/2026 Accounts Payable CALPERS - RETIREMENT $11,189.03 $11,189.03 $0.00 634 08/13/2026 Reconciled 08/14/2026 Accounts Payable EMPLOYMENT DEVELOPMENT
DEPARTMENT
$18,651.81 $18,651.81 $0.00
635 08/13/2026 Reconciled 08/14/2026 Accounts Payable INTERNAL REVENUE SERVICE $59,719.56 $59,719.56 $0.00 636 08/17/2026 Reconciled 08/18/2026 Accounts Payable ING LIFE INS & ANNUITY COMPANY $9,773.58 $9,773.58 $0.00 637 08/18/2026 Reconciled 08/19/2026 Accounts Payable CALPERS - RETIREMENT $74,706.43 $74,706.43 $0.00 638 08/20/2026 Reconciled 08/24/2026 Accounts Payable Amazon Capital Services $260.67 $260.67 $0.00 639 08/20/2026 Reconciled 08/25/2026 Accounts Payable COMCAST CABLE $429.25 $429.25 $0.00 640 08/20/2026 Reconciled 08/25/2026 Accounts Payable COMCAST CABLE $444.25 $444.25 $0.00 641 08/20/2026 Reconciled 08/25/2026 Accounts Payable PACIFIC GAS & ELECTRIC $16,186.39 $16,186.39 $0.00 642 08/20/2026 Reconciled 08/25/2026 Accounts Payable PACIFIC GAS & ELECTRIC $1,472.56 $1,472.56 $0.00 643 08/20/2026 Reconciled 08/26/2026 Accounts Payable Tri Counties Bank $18,708.12 $18,708.12 $0.00 644 08/20/2026 Reconciled 08/26/2026 Accounts Payable VERIZON WIRELESS $304.08 $304.08 $0.00 645 08/20/2026 Reconciled 08/26/2026 Accounts Payable VERIZON WIRELESS $282.41 $282.41 $0.00 646 08/20/2026 Reconciled 08/24/2026 Accounts Payable Amazon Capital Services $931.72 $931.72 $0.00 647 08/20/2026 Reconciled 08/25/2026 Accounts Payable AT&T MOBILITY $143.70 $143.70 $0.00 648 08/20/2026 Reconciled 08/25/2026 Accounts Payable AT&T MOBILITY $108.00 $108.00 $0.00 649 08/20/2026 Reconciled 08/25/2026 Accounts Payable PACIFIC GAS & ELECTRIC $150.99 $150.99 $0.00 650 08/20/2026 Reconciled 08/26/2026 Accounts Payable Tri Counties Bank $24,737.03 $24,737.03 $0.00 user: Aimee Beleu Pages: 5 of 6 Monday, August 31, 2026 Payment Register
TOWN OF PARADISE
From Payment Date: 8/1/2026 - To Payment Date: 8/31/2026 30 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
651 08/20/2026 Reconciled 08/26/2026 Accounts Payable VERIZON WIRELESS $1,399.65 $1,399.65 $0.00 652 08/28/2026 Open Accounts Payable CALPERS - RETIREMENT $74,891.67 653 08/28/2026 Open Accounts Payable EMPLOYMENT DEVELOPMENT
DEPARTMENT
$17,344.10
654 08/28/2026 Open Accounts Payable INTERNAL REVENUE SERVICE $55,771.39 Type EFT Totals: 35 Transactions $596,684.40 $448,677.24 $0.00 AP TCB - General Checking Totals
Checks Status Count Transaction Amount Reconciled Amount Open 59 $1,145,110.95 $0.00
Reconciled 123 $2,087,378.78 $2,087,378.78
Voided 3 $146,528.50 $0.00
Stopped 0 $0.00 $0.00
Total 185 $3,379,018.23 $2,087,378.78
EFTs Status Count Transaction Amount Reconciled Amount
Open 3 $148,007.16 $0.00
Reconciled 32 $448,677.24 $448,677.24
Voided 0 $0.00 $0.00
Total 35 $596,684.40 $448,677.24
All Status Count Transaction Amount Reconciled Amount
Open 62 $1,293,118.11 $0.00
Reconciled 155 $2,536,056.02 $2,536,056.02
Voided 3 $146,528.50 $0.00
Stopped 0 $0.00 $0.00
Total 220 $3,975,702.63 $2,536,056.02
Grand Totals:
Checks Status Count Transaction Amount Reconciled Amount Open 59 $1,145,110.95 $0.00
Reconciled 123 $2,087,378.78 $2,087,378.78
Voided 3 $146,528.50 $0.00
Stopped 0 $0.00 $0.00
Total 185 $3,379,018.23 $2,087,378.78
EFTs Status Count Transaction Amount Reconciled Amount
Open 3 $148,007.16 $0.00
Reconciled 32 $448,677.24 $448,677.24
Voided 0 $0.00 $0.00
Total 35 $596,684.40 $448,677.24
All Status Count Transaction Amount Reconciled Amount
Open 62 $1,293,118.11 $0.00
Reconciled 155 $2,536,056.02 $2,536,056.02
Voided 3 $146,528.50 $0.00
Stopped 0 $0.00 $0.00
Total 220 $3,975,702.63 $2,536,056.02
user: Aimee Beleu Pages: 6 of 6 Monday, August 31, 2026 Payment Register
TOWN OF PARADISE
From Payment Date: 8/1/2026 - To Payment Date: 8/31/2026 31 Town of Paradise
Council Agenda Summary
Date: September 8, 2026
Agenda Item: 2(c)
ORIGINATED BY: Melanie Elvis, Town Clerk
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: File the 2026 Conflict of Interest Code Biennial Notice
LONG TERM
RECOVERY PLAN:
No.
COUNCIL ACTION REQUESTED:
1. Review and file the 2026 Conflict of Interest Code Biennial Notice confirming the Town’s code of economic interest resolution is current and timely.
Background:
The Political Reform Act requires each city to review its conflict-of-interest code biennially and notify the City Council as to whether or not the code needs to be amended. The code may also be updated more frequently than every two years based on the following criteria:
1. Have there been any substantial changes to the agency’s organizational structure since the last code was approved?
2. Have any positions been eliminated or re-named since the last code was approved?
3. Have any new positions been added since the last code was approved?
4. Have there been any substantial changes in duties or responsibilities for any positions since the last code was approved?
Analysis:
The Fair Political Practices Commission has provided the 2026 Local Biennial Notice form, which uses the questions above to assist staff and the Council in determining whether the conflict-ofinterest code needs to be updated. Because the Council recently adopted an amended conflictof-interest code (Resolution No. 2026-39) in July of this year that updated position titles and responsibilities, staff recommends filing the notice with no amendments to the current code.
Financial Impact:
None.
32 www.fppc.ca.gov
FPPC Advice: [email protected] (866.275.3772)
2026 Local Agency Biennial Notice
Name of Agency:
Mailing Address:
Contact Person: Phone No.
Email: Alternate Email:
Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency’s code includes disclosure by those agency officials who make or participate in making governmental decisions.
This agency has reviewed its conflict of interest code and has determined that (check one BOX):
An amendment is required. The following amendments are necessary:
(Check all that apply.)
Include new positions
Revise disclosure categories
Revise the titles of existing positions
Delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions
Other (describe)
The code is currently under review by the code reviewing body.
No amendment is required. (If your code is over five years old, amendments may be necessary.)
Verification (to be completed if no amendment is required) This agency’s code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302.
__________________________________________ _________________________ Signature of Chief Executive Officer Date
All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 1, 2026, or by the date specified by your agency, if earlier, to:
(PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE)
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.
Town of Paradise
5555 Skyway, Paradise, CA 95969
Melanie Elvis
[email protected]
✔
530-872-6291
33 Town of Paradise
Council Agenda Summary
Date: September 08, 2026
Agenda Item: 2(d)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: VEOCI Memorandum of Understanding Amendment
LONG TERM
RECOVERY PLAN:
No
COUNCIL ACTION REQUESTED:
1. Approve the Amendment to the Memorandum of Understanding with Butte County for VEOCI virtual Emergency Operations Center services to align the agreement with the intended period of performance. (ROLL CALL VOTE) Background:
The Town of Paradise previously entered into a Memorandum of Understanding (MOU) with Butte County for access to VEOCI virtual Emergency Operations Center (EOC) software and services.
The original MOU was approved by the Town Council on November 12, 2024, as part of a regional effort to provide jurisdictions with virtual EOC capabilities and support coordinated emergency operations.
The Town's continued participation in the regional VEOCI system supports the Town's ability to conduct and coordinate emergency operations when personnel may not be able to immediately report to a physical EOC. The original MOU was established through the regional partnership with Butte County to provide this virtual EOC capability.
Since approval of the original MOU, the Town has worked in partnership with Butte County to implement the VEOCI system. The system has been partially implemented, and staff continue to work with Butte County to refine its use and maximize its benefit during emergency operations.
Analysis:
The effective term of the VEOCI contract does not align with the originally anticipated start date identified in the MOU. Butte County has requested an amendment to align the agreement with the intended period of performance.
The amendment is administrative and logistical in nature. It does not change the scope of services, cost, or substantive terms of the existing MOU. The amendment simply adjusts the agreement period to accurately reflect the actual effective term of the underlying VEOCI contract.
The initial date of the contract was February 19, 2026, and the amendment changes that date to March 27, 2026 to align with the actual contract start date. 34 Financial Impact:
There is no change to the financial impact previously approved by the Town Council as a result of this amendment. The amendment does not increase the cost of the MOU or alter the previously approved financial commitment. The original agreement established the Town's portion of the VEOCI contract at $15,737.44 for the first year, $16,524.31 for the second year, and $17,350.53 for the third year.
The amendment only aligns the agreement dates with the intended period of performance and does not require additional funding.
35 Amendment to Contract LT $25K Butte County General Services 01/01/2026 Page 1 of 1
AMENDMENT TO REVENUE CONTRACT
This Amendment to the Contract identified below, between the County of Butte, a political subdivision of the State of California, hereinafter referred to as “COUNTY,” and the Contractor identified below, hereinafter referred to as “CONTRACTOR,” reflects the mutual agreement between the parties to amend this Contract in consideration for the mutual promises contained herein.
Amendment Number: 1 Amendment Date: 3/27/2026
Contract Number: R42510 Initial Contract Execution
Date:
2/19/2026
Contractor: Town of Paradise
Previous Contract Price: $49,61228 Fixed Price Not-to-Exceed Price Net Change This Amendment: No Change Fixed Price Not-to-Exceed Price Revised Contract Price: $49,612.28 Fixed Price Not-to-Exceed Price Current Term Completion Date: 8/31/2027
Revised Term Completion Date: N/A
Description of Additional Changes:
The effective term of the contract does not align with the originally anticipated start date. This amendment aligns the agreement with the intended period of performance.
Amend Section 5 (Compensation) in its entirety to read as follows:
5. Compensation:
The Veoci implementation included an initial system build and configuration phase, followed by ongoing system availability and operational use. Costs associated with the system build phase and subsequent system use are part of the overall system cost and are shared proportionally among participating jurisdictions.
All compensation owed by Participant shall be paid to County as set forth in the table below. County shall pay Veoci, Inc., under a separate agreement, a total of $136,552.00 over the term of the contract. Participant shall pay the County for its proportional share of the Veoci system cost as detailed in the table below:
Qty. Description Price
1 System Build and Configuration $15,737.44
1 2026 Mid-Tier License (2025/2026) $16,524.31
1 2027 Mid-Tier License (2026/2027) $17,350.53
Total $49,612.28
Payments are due Net 30 upon receipt of invoices from Butte County OEM.
All other terms of this Contract shall remain in full force and effect and are hereby reaffirmed as originally stated or as previously amended by prior written amendment to this Contract.
COUNTY CONTRACTOR
Dennis Schmidt Date Name Date
Interim Director of General Services
REVIEWED FOR CONTRACT POLICY COMPLIANCE APPROVED AS TO FORM General Services Contracts Division Butte County Counsel
Date Date
36 Town of Paradise
Council Agenda Summary
Date: September 8, 2026
Agenda Item: 2(e)
ORIGINATED BY: Aimee Beleu, Finance Director/Town Treasurer REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Quarterly Financial Report
LONG TERM
RECOVERY PLAN:
No
COUNCIL ACTION REQUESTED:
Review and file the August 2026 Quarterly Financial/HR Position Report.
Background:
August 2026 represents the second month of the fiscal year, and year-to-date financial activity continues to reflect the timing of major revenue receipts and annual expenditures.
Many General Fund revenues have not yet been received. Property tax apportionments from Butte County are generally distributed in December and April following the County’s property tax collection cycle. Sales tax, franchise fees, and other intergovernmental revenues are received throughout the year and may lag the period in which they are generated. As a result, revenue collections through August remain relatively low and should not be viewed as indicative of annual revenue performance.
On the expenditure side, several significant annual costs are incurred early in the fiscal year, including the CalPERS unfunded accrued liability (UAL) prepayment, workers’ compensation premiums, and other annual personnel-related obligations. These expenditures are included within the adopted budget but cause year-to-date expenditures, particularly personnel-related costs, to appear higher than a straight-line monthly comparison would suggest. As the fiscal year progresses, additional revenues will be received and expenditure percentages will become more representative of annual activity.
This report provides the Town Council with an update on General Fund activity and the Town’s overall fiscal position through August 2026.
Attached to this report is the HR Position Report requested by the Town Council. The report provides the current organizational structure by department, the number of authorized position units, and identifies any current vacancies within each department.
Financial Impact:
None
37 Adopted Budget Amended Current Month YTD YTD Budget - YTD % Used/ Account Classification Budget Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year YTD Fund 1010 - General Fund
REVENUE
Taxes 8,764,919.00 .00 8,764,919.00 18,029.85 .00 677,194.50 8,087,724.50 8 12,879.43 Licenses and Permits 375,140.00 .00 375,140.00 1,327.40 .00 2,844.53 372,295.47 1 1,592.88 Fines, Forfeitures and Penalties 23,100.00 .00 23,100.00 800.00 .00 4,456.83 18,643.17 19 3,900.00 Investment Revenue 30,490.00 .00 30,490.00 .00 .00 .00 30,490.00 0 .00 Intergovernmental Revenues 2,116,043.00 .00 2,116,043.00 .00 .00 .00 2,116,043.00 0 (15,028.52) Charges for Services 83,877.00 .00 83,877.00 3,686.72 .00 10,466.17 73,410.83 12 29,978.73 Other Revenues 25,100.00 .00 25,100.00 2,743.92 .00 4,910.26 20,189.74 20 2,767.51 Other Financing Sources 14,670,651.00 .00 14,670,651.00 .00 .00 3,004,673.25 11,665,977.75 20 .00 REVENUE TOTALS $26,089,320.00 $0.00 $26,089,320.00 $26,587.89 $0.00 $3,704,545.54 $22,384,774.46 14% $36,090.03
EXPENSE
PRIOR YR ENTRY .00 .00 .00 .00 .00 .00 .00 +++ .00
Salaries and Wages 12,013,560.00 .00 12,013,560.00 664,731.79 .00 4,567,833.78 7,445,726.22 38 4,099,292.11 Other Employee Costs 1,534,285.00 .00 1,534,285.00 125,294.97 .00 182,546.89 1,351,738.11 12 130,463.35 Supplies 611,977.00 .00 611,977.00 13,299.73 26,051.50 55,298.95 530,626.55 13 134,863.63 Postage Printing and Advertising 116,865.00 .00 116,865.00 .00 .00 1,122.42 115,742.58 1 1,257.42 Utilities 388,531.00 .00 388,531.00 1,175.77 .00 22,120.41 366,410.59 6 59,719.27 Services 9,508,812.00 .00 9,508,812.00 165,398.03 98,897.72 488,901.64 8,921,012.64 6 978,265.95 Employee Development 232,425.00 .00 232,425.00 119.00 .00 4,850.30 227,574.70 2 24,535.22 Other Costs 41,150.00 .00 41,150.00 .00 .00 518.61 40,631.39 1 53,507.34 Special Costs 30,850.00 .00 30,850.00 .00 .00 .00 30,850.00 0 8,995.91 Capital Outlay 1,033,519.00 .00 1,033,519.00 .00 (2,177.58) 190,056.81 845,639.77 18 118,237.39 Debt Service 1,277,491.00 .00 1,277,491.00 .00 .00 1,320,951.76 (43,460.76) 103 .00 Other Financing Uses (700,145.00) .00 (700,145.00) .00 .00 .00 (700,145.00) 0 .00 EXPENSE TOTALS $26,089,320.00 $0.00 $26,089,320.00 $970,019.29 $122,771.64 $6,834,201.57 $19,132,346.79 27% $5,609,137.59 Fund 1010 - General Fund Totals
REVENUE TOTALS 26,089,320.00 .00 26,089,320.00 26,587.89 .00 3,704,545.54 22,384,774.46 14% 36,090.03 EXPENSE TOTALS 26,089,320.00 .00 26,089,320.00 970,019.29 122,771.64 6,834,201.57 19,132,346.79 27% 5,609,137.59 Fund 1010 - General Fund Totals $0.00 $0.00 $0.00 ($943,431.40) ($122,771.64) ($3,129,656.03) $3,252,427.67 ($5,573,047.56) Grand Totals
REVENUE TOTALS 26,089,320.00 .00 26,089,320.00 26,587.89 .00 3,704,545.54 22,384,774.46 14% 36,090.03 EXPENSE TOTALS 26,089,320.00 .00 26,089,320.00 970,019.29 122,771.64 6,834,201.57 19,132,346.79 27% 5,609,137.59 Grand Totals $0.00 $0.00 $0.00 ($943,431.40) ($122,771.64) ($3,129,656.03) $3,252,427.67 ($5,573,047.56) Run by Aimee Beleu on 08/31/2026 01:03:27 PM Page 1 of 1 Budget by Account Classification Report
Through 08/31/26
Prior Fiscal Year Activity Included
Summary Listing
38 Citizens of Paradise
Town Council
Police
Operations
Dispatch
Animal Control
VIPS
Fire Public Works*
Fleet
Engineering
Maintenance
Information
Technology
Community
Development
Building
Code Enforcement
Fire Prevention
Wastewater
Planning
Finance
Human Resources
& Risk
Management
Recovery &
Economic
Development
Housing
Economic Development
Recovery & Emergency
Management
Town Clerk
Planning Commission, Successor
Agency to the RDA, Measure V
Oversight Committee
Town Attorney
Town Manager
Organization
Chart
FY 2026/27
103.8 Full-Time Equivalent Employees
105 Headcount
3 Vacancies
(9 Town Manager Direct Reports)
Assistant Town
Manager*
*Assistant Town Manager role is currently held
by the Public Works Director/Town Engineer
39 Public Works Department
Public Works Director /
Town Engineer
Engineering Division
Supervising Capital
Projects Manager
Sr. Construction
Inspector
Construction
Inspector II
Program Analyst
Supervising Capital
Projects Manager
(2) Capital Projects
Manager
Assistant Engineer
Engineering Intern
(Temp)
Fleet Division
Fleet Manager
Fleet Mechanic II
Auto Technician (PT)
Maintenance Division
Public Works Manager
Public Works
Supervisor
Sr Maintenance
Worker - Facilities
Sr Maintenance
Worker – ROW
(3) Maintenance
Worker II
Maintenance Worker I
FTE: 20.65
Head Count: 21
Vacancies: 0
40 Community Development Department
Community Development Director
– Building, Code Enforcement &
Fire Prevention
Building Division
(2.45)
Building/Onsite
Inspector II
Building/Onsite
Inspector I
Building Plans
Examiner
Office Assistant
Code Enforcement
Division
Administrative
Assistant
Senior Supervising
Code Enforcement
Officer
Code Enforcement
Officer II
Fire Prevention Division
(2) Fire Prevention
Inspector II
(2) Fire Prevention
Inspector I
Community Development Director –
Planning & Wastewater
Planning Division
Community
Development
Manager
(4) Building/Onsite
Permit Technician I
(2)Office Assistant
Senior Planner Assistant Planner
Wastewater Division
Onsite Sanitary
Official
Building/Onsite
Inspector I
FTE: 25.45
Head Count: 26
Vacancies: 0
41 Recovery & Economic Development Department
Recovery & Economic Development Director
Administrative Assistant Housing Division
Housing Program Manager
Housing Program
Coordinator
Economic Development Division
Economic Development
Coordinator
Recovery & Emergency
Management Division
Project Manager
Emergency Operations
Coordinator (PT)
Workforce Development
Project Coordinator (LT)
Office Assistant
FTE: 8.45
Head Count: 9
Vacancies: 1 (Economic Development Coor.)
42 Police Department
Chief of Police
Administrative
Assistant Police Lieutenant
Operations
Division
(6) Police
Sergeant
(12) Police
Officer
Police Trainee
(Temp)
Community
Services Officer
Police Lieutenant
Animal Control
Division
Animal Control
Supervisor
(2) Animal
Control Officer
Office Assistant
(PT)
Dispatch Division
Support Services
Supervisor
(6) Public Safety
Dispatcher
Property/Evid.
Technician
Police Intern
(Temp)
VIPS Division
FTE: 35.75
Head Count: 37
Vacancies: 2 (Intern, Officer)
43 Fire Department
Cooperative Fire Protection Agreement with CALFIRE
Assistant Chief – North Division Operations
D2103
Battalion Chief
B2118
Station 81 Station 82
(3) Fire Captains (3) Fire Captains
(3) Fire Apparatus
Engineers
(3) Fire Apparatus
Engineers
(3) Firefighter II (3) Firefighter II
Station 35
4 Month FFI
Town of Paradise
Position -
Administrative Assistant
Rest of North Division
FTE: .6
Head Count: 1
Vacancies: 0
44 Finance Department
Finance Director / Town Treasurer
(2) Senior Accountant
Accountant
Accounting Analyst
Accounting Assistant II
(LT)
Accounting Assistant I
(LT)
FTE: 7
Head Count: 7
Vacancies: 0
45 Human Resources / Risk Management
Human Resources & Risk Management Director
Executive Assistant (TM/HR)
FTE: 1.9
Head Count: 2
Vacancies: 0
46 Information Technology
Information Technology Director
Information Systems Tech II
FTE: 2
Head Count: 2
Vacancies: 0
47 Town Clerk
Town Clerk / Elections Official
Deputy Town Clerk
FTE: 2
Head Count: 2
Vacancies: 0
48 Town of Paradise
Council Agenda Summary
Date: September 08, 2026
Agenda Item: 2(f)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Category 4 Tree Removal Program Closeout Report
LONG TERM
RECOVERY PLAN:
No
COUNCIL ACTION REQUESTED:
1. Review and receive the FEMA/CalOES Category 4 Tree Removal Program Project Closeout Report to formally closeout the project and all associated contracts and agreements.
Background:
The Town of Paradise Category 4 Tree Removal Program was established to address hazardous trees remaining on private property following the 2018 Camp Fire. The program completed mitigation on 339 private parcels and mitigated 8,566 hazardous trees.
The program represents a significant milestone in the Town's post-Camp Fire recovery, reducing hazardous fuels and public safety risks while allowing property owners to continue rebuilding efforts.
Analysis:
Successful completion of the program required an extensive and effective partnership among Paradise property owners, the Town, FEMA, CalOES, CALFIRE, tribal governments, the Butte County Fire Safe Council, environmental and forestry professionals, and private contractors.
The Butte County Fire Safe Council served as a key implementation partner, supporting project management, parcel assessments, environmental and cultural compliance coordination, contractor oversight, and tree-removal operations.
The Mechoopda Indian Tribe of Chico Rancheria, Enterprise Rancheria, and Mooretown Rancheria provided critical cultural-resource monitoring and consultation. Federal and state agencies, including FEMA, Cal OES, and CAL FIRE, provided oversight and regulatory coordination throughout the program.
Local contractors and professional consultants were instrumental in delivering the work safely and efficiently, including Warner Enterprises and locally based tree-removal companies.
The Category 4 Tree Removal Program successfully accomplished its objectives by mitigating 8,566 hazardous trees across 339 private parcels, reducing wildfire risk and improving community 49 safety. The program also demonstrated the value of strong coordination among property owners, tribal partners, federal and state agencies, nonprofit organizations, contractors, and Town staff.
Acceptance of the final report and closure of the associated contracts will formally conclude the Category 4 Tree Removal Program
Financial Impact:
There is no impact to the Town's General Fund and no cost to the property owners who participated in the program.
The program was funded through federal and state grant funding, with 75% of eligible project costs provided through the FEMA/Cal OES Hazard Mitigation Grant Program (HMGP) and the required 25% local match provided by CAL FIRE through the California Climate Investments (CCI) grant program.
The project was completed under budget.
Approved project budget: $11,747,128
Actual expenditures: $7,983,514.53
Contingency: No contingency funds were used.
The largest project component, tree removal operations, was completed for $5,176,612.80, compared with an original estimate of $7,143,844.00. Other project components, including project management, monitoring, and Environmental and Historic Preservation compliance, were also completed below budget.
50 TOWN OF PARADISE
CATEGORY 4 TREE REMOVAL PROGRAM
CLOSEOUT REPORT
June 5, 2026
Disaster: 4407 CalOES#: PJ0305
FEMA#: 4407-57R FIPS#: 007-55520
51 Town of Paradise
CAT4 Tree Removal Program
2 Working together to rebuild a thriving community.
Included Documentation
Section 1: Project Summary
Section 2: Procurement Process
Section 3: Environmental Compliance and Monitoring
Section 4: Project Budget Summary
Section 5: Subrecipient Management Costs (SRMC) Budget Summary 52 Town of Paradise
CAT4 Tree Removal Program
3 Working together to rebuild a thriving community.
Section 1: Project Summary
The Town of Paradise Category 4 Tree Removal Program was established to address the thousands of hazardous trees left standing after the 2018 Camp Fire. While earlier recovery efforts prioritized hazard tree removal within public rights-of-way, a significant number of firedamaged and structurally compromised trees remained on private property throughout the community. These trees posed ongoing threats to homes, driveways, utility access, and private property areas not included in the previous tree removal programs.
Through funding provided by the Federal Emergency Management Agency Hazard Mitigation Grant Program (HMGP), which funded 75 percent of eligible project costs, along with matching funds from CAL FIRE California Climate Investments Program, the Town of Paradise launched the Category 4 Tree Removal Program to improve public safety, reduce wildfire risk, and support the community’s long-term recovery efforts. The Butte County Fire Safe Council was contracted to manage and implement the program and was responsible for parcel assessments, environmental and cultural compliance coordination, contractor oversight, and tree removal operations.
During the initial phase of the program, nearly 11,000 hazard trees were identified across more than 500 parcels within the Camp Fire footprint. The second phase of implementation began in June 2025 and was completed in November 2025. During this phase, mitigation activities were completed on 339 parcels, resulting in the treatment of 8,566 hazardous trees through a combination of complete removals and lop-and-scatter treatments. The reduction in enrolled properties and eligible trees was primarily due to the long Environmental Planning and Historic Preservation (EHP) delays which resulted in extended time between Phase 1 and Phase 2.
Many properties withdrew from the program due to property transfers, self-abatement of hazard trees, or other lack of interest after delays.
To support environmental compliance and resource protection requirements, Mountain Ground Enterprises (MGE) was retained to conduct wildlife and botanical surveys and provide on-site biological oversight throughout project implementation. W. M. Beaty & Associates, Inc. served as the project’s Registered Professional Forester (RPF) firm and was responsible for preparation of environmental documentation, timber operation permitting, and professional oversight to ensure compliance with applicable state and federal environmental regulations.
Warner Enterprises Inc. was selected as the prime tree removal contractor and partnered with Northfork Enterprises to manage field operations. Work was completed utilizing several locally based companies, including Mike Goggia Tree Service, Crossfire Tree & Vegetation Services, and All Things Trees, allowing the project to be completed efficiently and in accordance with established project standards and safety requirements.
53 Town of Paradise
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The Enterprise Rancheria, Mechoopda Indian Tribe of Chico Rancheria, and Mooretown Rancheria served as critical project partners by monitoring tree removal activities and ensuring that cultural and environmental protection measures were implemented throughout all phases of the work.
Tree Assessment Totals
The Category 4 Hazardous Tree Removal Program utilized a diameter-based classification system to prioritize and track mitigation activities. Trees were categorized into five size classes based on Diameter at Breast Height (DBH), ranging from small-diameter trees (R1) measuring
5.0 to 11.99 inches DBH to large-diameter trees (R5) measuring 48 inches DBH and greater.
Initial project assessments identified a total of 10,549 hazardous trees requiring treatment across eligible parcels. The largest concentration of hazardous trees was found within the medium-sized diameter classes. Size Class R2 (12.0–23.99 inches DBH) accounted for 3,885 trees, representing the largest single category, followed closely by Size Class R1 (5.0–11.99 inches DBH) with 3,624 trees. Larger trees were less common but often presented elevated risk due to their size and potential impact if they failed. Size Class R3 (24.0–35.99 inches DBH) included 1,445 trees, while Size Class R4 (36.0–47.99 inches DBH) and Size Class R5 (48.0 inches DBH and greater) included 393 and 149 trees, respectively.
Among trees initially identified for lop-and-scatter treatment, the majority were also concentrated within the smaller diameter classes, including 486 trees in R1 and 375 trees in R2. Additional treatments included 117 trees in R3, 58 trees in R4, and 17 trees in R5.
In summary, the initial project assessment identified 9,496 trees for full removal and 1,053 trees as potential candidates for lop and scatter operations.
The distribution of tree sizes demonstrates that the project addressed a broad range of post-fire hazards, from smaller dead and dying trees contributing to fuel loading and access concerns to large-diameter trees capable of causing significant damage to structures, and other areas of private property. By treating hazardous trees across all size classes, the project effectively reduced wildfire risk, improved public safety, and supported the long-term recovery and resilience of the Paradise community.
Tree Removal Summary
The Category 4 Hazardous Tree Removal Program successfully mitigated 8,566 hazardous trees across 339 private parcels within the Town of Paradise. Of these, 6,385 trees were completely removed and 2,181 trees received approved lop-and-scatter treatment. Tree 54 Town of Paradise
CAT4 Tree Removal Program
5 Working together to rebuild a thriving community.
mitigation was completed across all diameter size classes, addressing hazards ranging from small-diameter trees to large trees exceeding 48 inches in diameter.
The final number of treated trees and enrolled parcels was lower than originally identified during the initial project assessments. The reduction was primarily attributable to the extended period between parcel assessment and project implementation. During that time, numerous hazardous trees fell naturally, some property owners removed trees independently, and ownership changes resulted in new property owners either completing the work themselves or electing not to participate in the program.
Lop-and-scatter treatments were used only where appropriate to reduce environmental impacts while maintaining safety of tree program crews. Each treatment location was individually reviewed and approved by the project Registered Professional Forester, biological and archaeological teams, and the Town of Paradise Fire Chief prior to implementation. This treatment approach was reviewed and approved by FEMA as an acceptable mitigation method for steep terrain and environmentally sensitive areas where complete tree removal could create unnecessary environmental disturbance or increase operational risk.
Complete Tree Removal
A total of 6,385 hazardous trees were fully removed across all size classifications:
• Size Class R1: 2,199 trees
• Size Class R2: 2,708 trees
• Size Class R3: 1,068 trees
• Size Class R4: 300 trees
• Size Class R5: 110 trees
Lop-and-Scatter Treatments
A total of an additional 2,181 trees were treated using lop-and-scatter methods:
• Size Class R1: 939 trees
• Size Class R2: 825 trees
• Size Class R3: 283 trees
• Size Class R4: 92 trees
• Size Class R5: 42 trees
The Category 4 Tree Removal Program successfully reduced immediate public safety hazards associated with fire-damaged and structurally compromised trees while also improving 55 Town of Paradise
CAT4 Tree Removal Program
6 Working together to rebuild a thriving community.
defensible space conditions and reducing hazardous fuel loading that could contribute to future wildfire intensity and spread. The project improved the safety of private property and allowed property owners to continue rebuilding efforts without the ongoing threat posed by unstable trees.
Beyond the direct mitigation benefits, the program demonstrated the effectiveness of coordinated collaboration between local government, nonprofit organizations, tribal governments, environmental consultants, private contractors, and state and federal agencies.
Completion of the Category 4 Tree Removal Program represents a significant milestone in the Town of Paradise’s long-term recovery and reflects the community’s continued commitment to public safety, environmental stewardship, forest health, and wildfire resilience. 56 Town of Paradise
CAT4 Tree Removal Program
7 Working together to rebuild a thriving community.
Section 2: Procurement Process
The Town of Paradise and the Butte County Fire Safe Council (BCFSC) conducted all procurement activities for the Category 4 Hazardous Tree Removal Program in accordance with applicable federal, state, and local procurement requirements, including FEMA Hazard Mitigation Grant Program (HMGP) regulations, Cal OES grant requirements, and all applicable conflict of interest and contractor eligibility standards.
Prior to contract award, all contractors and consultants were reviewed for eligibility and responsibility. Required due diligence procedures were completed, including verification that firms were not suspended or debarred from participation in federally funded programs through the System for Award Management (SAM.gov) and other applicable verification processes.
Procurement records, contract documentation, and supporting files were maintained throughout project implementation to demonstrate compliance with applicable grant requirements.
The Butte County Fire Safe Council served as a project partner and grant implementation entity for the Category 4 Tree Removal Program. As a project partner, BCFSC was not subject to a competitive procurement process for its role in project administration and implementation.
The following contracts and professional service agreements were utilized to support project delivery:
• Mountain Engineering – Archaeological and Biological Services, including environmental compliance, cultural resource surveys, biological surveys, monitoring, regulatory coordination, reporting, FEMA consultation, and State Historic Preservation Office (SHPO) documentation.
• Warner Enterprises, Inc. – Prime contractor responsible for hazard tree removal operations, contractor management, field implementation, and completion of tree mitigation activities on eligible properties.
• Mechoopda Indian Tribe of Chico Rancheria – Tribal monitoring and cultural resource protection services during project implementation.
• Enterprise Rancheria – Tribal monitoring and cultural resource protection services during project implementation.
• Mooretown Rancheria – Tribal monitoring and cultural resource protection services during project implementation.
In addition, the Butte County Fire Safe Council procured W. M. Beaty & Associates, Inc. through a full,competitive RFP process as a subcontractor to provide Registered Professional 57 Town of Paradise
CAT4 Tree Removal Program
8 Working together to rebuild a thriving community.
Forester (RPF) services. W. M. Beaty & Associates was responsible for preparation and submission of timber operation permitting documentation, forestry compliance oversight, environmental documentation, coordination with regulatory agencies, and professional forestry services necessary to support implementation of the Category 4 Tree Removal Program.
All contracts were executed and administered in accordance with applicable procurement requirements and were determined to be necessary, reasonable, and directly related to the successful completion of the FEMA-funded hazard mitigation project.
Town of Paradise Procurement Methods for Applicable Contracts:
Biological Surveying and Monitoring Contract:
• RFP #C4BIO2024 was posted on February 29, 2024
• Questions were received and an RFP addendum was posted on March 14, 2024 • The RFP was closed on March 26, 2024 with 9 proposals submitted. The average cost of the received proposals was $346,256.10.
• All proposals were scored by our review team consisting of Town of Paradise and BCFSC Staff.
• After scoring, two proposals were identified as the top proposals received and moved forward to an interview presentation.
• After the interview presentation, the review team unanimously chose Mountain Engineering (Folsom, CA) for the award of the contract based on their experience, history of working in Paradise, project plan and understanding of the project needs. • The contract was for the Not-to-Exceed (NTE) amount of $266,622.33 Archeaological Surveying and Monitoring Contract:
• RFP #C4ARCH2024 was posted on February 29, 2024
• Questions were received and an RFP addendum was posted on March 14, 2024 • The RFP was closed on March 26, 2024 with 10 proposals submitted. The average cost of the received proposals was $295,591.12.
• All proposals were scored by our review team consisting of Town of Paradise and BCFSC Staff.
• After scoring, one proposal was determined to be the clear top proposal received and moved forward to an interview presentation.
• After the interview presentation, the review team chose Mountain Engineering (Folsom, CA) for the award of the contract based on their experience, history of working in Paradise, project plan and understanding of the project needs. Additionally, awarding both the Biological Surveying Contract and the Archaeological Surveying Contract to the same contract will increase efficiency, limit the number of program managers involved and reduce costs overall.
58 Town of Paradise
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• The contract was for the Not-to-Exceed (NTE) amount of $230,380.00.
Tribal Monitoring Contracts:
• Local tribes (Mechoopda, Enterprise, and Mooretown) have been involved in the environmental process since the beginning of the project. We have worked with our FEMA Tribal Liaison to make sure all Tribal needs and monitoring requirements were addressed. Through that process, each of the tribes worked with FEMA and Town Staff to develop cost estimates for all required monitoring and surveying. The contract with the Mechoopda Indian Tribe of Chico Rancheria was for the Notto-Exceed (NTE) amount of $229,080.00 The contract with the Enterprise Rancheria was for the Not-to-Exceed (NTE) amount of $225,653.80
The contract with the Mooretown Rancheria was for the Not-to-Exceed (NTE) amount of $363,038
Tree Removal Contract:
• RFP # TOPC42024 was posted on October 28, 2024
• Questions were received and an RFP addendum was posted on November 7, 2024 • The RFP was closed on November 12, 2024 with 7 proposals submitted. The average cost of the received proposals was $5,308,302.
• All proposals were scored by our review team consisting of Town of Paradise and BCFSC Staff.
• After scoring, two proposals were identified as the top proposals received and moved forward to an interview presentation.
• After the interview presentations, the review team unanimously chose Warner Enterprises for the award of the contract based on their experience, history of working in Paradise, project plan and understanding of the project needs. • The contract was for the Not-to-Exceed (NTE) amount of $6,104,852.80. 59 Town of Paradise
CAT4 Tree Removal Program
10 Working together to rebuild a thriving community.
Section 3: Environmental Compliance & Monitoring
The Town of Paradise successfully completed all Environmental and Historic Preservation (EHP), biological, archaeological, tribal consultation, and forestry compliance requirements associated with the FEMA Hazard Mitigation Grant Program (HMGP) Category 4 Hazardous Tree Removal Project. Compliance activities were conducted across hundreds of private parcels within the Camp Fire footprint and were essential to ensuring project implementation met all applicable federal, state, and local environmental regulations.
Comprehensive biological and archaeological evaluations were conducted throughout the project area to identify sensitive biological resources, cultural resources, archaeological sites, and aquatic features requiring protection or mitigation. Environmental compliance efforts included project scoping, field reconnaissance, resource surveys, monitoring, regulatory coordination, reporting, and implementation oversight during tree removal operations. Biological monitoring and site inspections ensured that all hazard tree removal activities were conducted in accordance with applicable environmental protection measures and permit requirements.
Special-status species monitoring and documentation were completed as required, including preparation of supporting technical memoranda addressing field observations and compliance monitoring activities.
Historic preservation compliance was completed in accordance with Section 106 of the National Historic Preservation Act and FEMA Environmental and Historic Preservation requirements.
Cultural resource investigations, evaluations, consultation activities, and documentation were completed for project parcels, and all required coordination with FEMA and the California State Historic Preservation Office (SHPO) was successfully concluded. The project completed and submitted all required Section 106 compliance documentation, including determinations for No Adverse Effect to Historic Properties, No Historic Properties Impacted, and Screened Undertakings for parcels with no identified cultural resource concerns.
Government-to-government consultation and coordination were conducted throughout project implementation with the Mechoopda Indian Tribe, Enterprise Rancheria, and Mooretown Rancheria. Tribal representatives participated in project review, monitoring, and consultation activities to ensure cultural resources were appropriately identified, protected, and managed throughout the project. Where cultural resources were present, mitigation measures were developed in coordination with tribal representatives and incorporated into project implementation.
Forestry compliance activities were completed under the direction of a Registered Professional Forester (RPF) and included preparation of timber operation permitting documents, resource evaluations, regulatory coordination, and compliance oversight. All project parcels were reviewed for biological, archaeological, and environmental constraints prior to implementation.
Watercourses, springs, ponds, drainage features, and other aquatic resources were identified 60 Town of Paradise
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11 Working together to rebuild a thriving community.
and protected in accordance with California Forest Practice Rules and applicable environmental requirements.
Based on environmental review findings, project parcels were categorized according to the presence or absence of cultural resources and operational constraints. The majority of parcels did not contain biological or archaeological limitations requiring additional mitigation beyond standard protection measures. For these areas, Drought or Unmerchantable Sawlog Exemptions were prepared and filed with CAL FIRE to authorize the removal of dead, dying, diseased, and unmerchantable trees associated with post-fire conditions. Additional permitting and mitigation measures were implemented for parcels containing identified cultural resources, including submission of an Emergency Notice of Timber Operations where work was proposed within archaeologically sensitive areas.
All timber operation permits were enrolled in the Central Valley Regional Water Quality Control Board waiver program, ensuring compliance with applicable water quality protection requirements. Where required, implementation, effectiveness, and compliance monitoring activities were conducted to verify that environmental, cultural resource, and water quality protection measures were successfully implemented throughout project operations.
Completion of these environmental, historic preservation, tribal consultation, and forestry compliance activities enabled the Town of Paradise to successfully implement the Category 4 Hazardous Tree Removal Project while protecting sensitive natural and cultural resources, satisfying all FEMA and Cal OES Environmental and Historic Preservation requirements, and maintaining compliance with applicable state and federal regulations. 61 Town of Paradise
CAT4 Tree Removal Program
12 Working together to rebuild a thriving community.
Section 4: Budget Summary
The Town of Paradise Category 4 Tree Removal Program was completed under budget. The total approved project budget was $11,747,128.00, while total actual expenditures were $7,983,514.53, resulting in overall savings of $3,763,613.47 or 32 percent below the approved budget.
Phase 1 Activities
Phase 1 activities focused on project development, intake, parcel assessments, and preimplementation planning. These activities were completed as budgeted and Phase 1 expenditures were $737,569.66
Phase 2 Pre-Award Activities
Due to ongoing delays in the FEMA Environmental and Historic Preservation (EHP) review process, Town, CalOES, and FEMA leadership met on August 23, 2023, along with state and federal elected officials, to discuss strategies for maintaining project momentum. Following FEMA and CalOES guidance, the Town proceeded with eligible pre-award activities to reduce the time between project award and implementation. This proactive approach allowed the Category 4 Tree Removal Program to begin work more quickly once EHP work was completed, accelerating the removal of hazardous trees and improving overall project delivery Phase 2 pre-award expenditures were $22,974.50
Phase 2 Activities
Phase 2 consisted of project implementation, including hazard tree removal operations, project management, environmental compliance, tribal monitoring, and associated support services.
Total Phase 2 expenditures were $7,222,970.37.
Major Phase 2 expenditures included:
• Butte County Fire Safe Council Project Management: $415,279.07 • Town of Paradise Project Management: $15,739.06
• Tree Removal Operations: $5,176,612.80
• Project Monitoring Services: $598,523.91
• Environmental and Historic Preservation (EHP) Compliance Services: $1,016,815.53 No contingency funds were utilized during project implementation. 62 Town of Paradise
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13 Working together to rebuild a thriving community.
Budget Performance
The largest budget category, Tree Removal Operations, was completed significantly below the original estimate of $7,143,844.00, with actual expenditures totaling $5,176,612.80. Similarly, project monitoring, project management, and Environmental and Historic Preservation (EHP) compliance activities were completed below their respective budget allocations while still meeting all project requirements and deliverables.
Environmental and Historic Preservation expenditures included biological surveys, archaeological investigations, tribal coordination and monitoring, forestry compliance, environmental permitting, and all required federal and state environmental review activities necessary to support project implementation.
As noted, the Butte County Fire Safe Council incurred total project costs of $859,974.07. These costs were allocated between Project Management ($415,279.07) and EHP/Forester Subcontract Services ($444,695.00) in accordance with the Town Council-approved Not-toExceed contract and project budget structure.
Financial Outcome
The successful completion of the Category 4 Tree Removal Program under budget reflects effective project management, competitive contracting, efficient field operations, and careful stewardship of FEMA Hazard Mitigation Grant Program and CAL FIRE matching funds. Despite expenditures being substantially below original estimates, the project successfully achieved its primary objectives of mitigating hazardous post-fire trees, reducing wildfire risk, improving overall community wildfire safety, and supporting the continued recovery and resilience of the Paradise community.
63 Town of Paradise
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64 Town of Paradise
CAT4 Tree Removal Program
15 Working together to rebuild a thriving community.
Section 5: Subrecipient Management Costs (SRMC) Budget
Summary
Subrecipient Management Costs (SRMC) to support administration and implementation of the FEMA Hazard Mitigation Grant Program (HMGP) Category 4 Hazardous Tree Removal Project was also completed under budget.
The approved SRMC budget was $578,326, while actual expenditures totaled $340,827.51, resulting in savings of $237,498.49 and completing the SRMC expenditures 41% under budget.
SRMC expenditures consisted of Town staff time dedicated to project management, grant administration, financial tracking, procurement oversight, coordination with FEMA and Cal OES, reporting, reimbursement requests, and other project activities.
The Town successfully completed all required administrative and grant management responsibilities while maintaining compliance with FEMA and Cal OES requirements and utilizing significantly less funding than originally budgeted.
65 Town of Paradise
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66 Town of Paradise
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67 Town of Paradise
Council Agenda Summary
Date: September 8, 2026
Agenda Item: 2(g)
ORIGINATED BY: Sarah Richter, Housing Program Coordinator REVIEWED BY: Colette Curtis, Recovery and Economic
Development Director
SUBJECT: Home Investment Partnerships Program Request for Qualifications for the Infill New Construction for First-Time Homebuyers program
LONG TERM
RECOVERY PLAN:
No
COUNCIL ACTION REQUESTED:
1. Approve publication of the Request for Qualifications (RFQ) for the HOME Infill New Construction for First-Time Homebuyers program; and,
2. Adopt Resolution No. 2026- ___ “A Resolution of the Town Council of the Town of Paradise Amending and Updating the Home Investment Partnerships Program (HOME) Infill New Construction First-Time Home Buyer Program Guidelines, Previously Adopted by Resolution No. 2025-64.” Background:
The Town of Paradise Town Council approved the application and subsequent agreements to the Home Investment Partnerships Program (HOME) program from the California Department of Housing and Community Development (HCD) on February 8, 2022, for funding to implement an infill new construction for first-time homebuyers program. The executed agreement for this award was not received until April of 2025. Per the guidelines approved by Town Council on August 13, 2025, the Town will hire general contractors to build homes on previously developed residential properties to be sold to pre-approved, low-income, first-time homebuyers upon completion.
The HOME program is a federally funded housing program which requires documented procurement standards.
After the guidelines for the HOME Infill New Construction for First-Time Homebuyers program were approved by Council last year, representatives from HCD’s HOME program recommended minor changes to wording and updates to the income limits, value limits, and maximum per-unitsubsidy limits, which increased earlier this year.
Analysis:
The Request for Qualifications (RFQ) aims to solicit Statements of Qualification (SOQ) from multiple qualified contractors to create a “short list” of vetted, qualified contractors who are prepared to meet the regulatory requirements in addition to complete the construction work.
Contractors who have submitted acceptable SOQs will be asked to submit bids for new home construction projects when program applicants and project sites are known. Multiple projects are expected and multiple contractors will be selected.
68 If approved, the RFQ will be posted on the Town’s website and the Valley Contractors Exchange plan room.
Financial Impact:
There is no cost to publish the RFQ and accept statements of qualification from interested contractors, and no cost to approve and adopt amended HOME program guidelines. Contracts between the Town and a selected contractor will not be executed until a first-time homebuyer who will purchase the home upon completion has gone through the Housing Department’s application and pre-approval process.
69 Town of Paradise
Business & Housing
5555 Skyway
Paradise, CA 95969
(530) 872-6291
Working together to rebuild a thriving community.
RFQ
The Town of Paradise is offering an Infill New Construction for First-Time Homebuyers program. The Town seeks to obtain the services of experienced CA Class B contractors to perform the construction of stick-built housing units on formerly developed residential properties throughout Paradise. Manufactured housing on a permanent foundation that meets federal standards (24 CFR Part 3285) is also an eligible type of housing constructed under this program and interested firms must have a C47 license to bid on manufactured housing projects. Project sites will be owned by the Town of Paradise for the duration of construction and sold to the pre-approved first-time home buyer upon completion.
The program is funded through the US Department of Housing and Urban Development (HUD) Home Investment Partnerships Program. Due to laws governing this funding, DavisBacon does not apply to any construction contract for less than 12 units, but each project must adhere to strict cost-per-unit limitations, and estimates that exceed the budget restrictions must be rejected.
Firms interested in participating in this program and being included on a ‘prequalified’ contractor bid list need to submit a Statement of Qualifications (SOQ). Please read through the information provided below, and submit your SOQ as directed. Respondents to this RFQ will be vetted for placement on the bid list. Interested firms must be willing and able to comply with the federally required laws and reporting requirements.
Bid opportunities are expected over the next 2-3 years. Project sites will be determined as first-time homebuyer applicants are approved. Final contract cost estimates will not be requested until specific sites are known.
When submitted for Infill projects, contractor bids will be based on, but are not limited to, licensing, experience, staffing, insurance, capability, availability, and customer service.
Time is of the essence. Each homebuyer applicant will be pre-approved by both a first-lender and the Town of Paradise. Financial feasibility will be analyzed and project sites selected prior to engagement with a contractor. Desired time period from contract selection to close of escrow on the completed home is 6 months.
Deadline to respond to this RFQ:
All SOQ should be submitted as soon as possible, as this RFQ can be retracted at any time.
REQUEST FOR QUALIFICATIONS (RFQ) FROM GENERAL CONTRACTORS Town of Paradise HOME Infill New Construction PROGRAM
70 Qualified Prime Contractors:
1. Will be placed on a contractor bid list, and receive invitations to bid infill projects as they become available. Multiple projects are expected, and multiple contractors will be selected.
2. Will receive a project scope of work and bid documents for each project. Selected contractors will not be limited to specific building plans and are encouraged to submit preapproved/mastered plans as appropriate to reduce permitting costs.
3. Must participate in onsite bid walks in order to bid projects.
4. Will organize and coordinate all construction work, installations, and subcontractors, in conjunction with project and contract management and oversight by Program Coordinator.
5. Will execute construction contracts with Program Coordinator.
6. Must be willing and able to comply with Section 3 outreach and reporting requirements (Exhibit A).
7. Selected contractors will enter into a construction contract with the Town of Paradise that includes a written scope of work, a line-itemed bid, allowable timeframes for completion, dispute resolution procedures, and disbursement steps. The contract shall specify that work will be performed in accordance with federal, state, and local housing and building codes, regulations and statutes. The contract will include a progress payment schedule with payments tied to specific project milestones. The final 5% of the total contract cost will be retained for 30-days after a Notice of Completion is recorded. Unconditional progress payment waiver and release forms shall be signed upon receipt of each payment.
Opinion of Probable Cost: $251,000
1,100 sq ft, 2-bedroom, 2 bathroom, builder-grade stick-built home - Including property survey, plans, permits, septic replacement, fill dirt and compaction, overhead and profit
- Not including costs for land, outside financing, property taxes, real estate commissions - Opinion is based on a mastered floor plan with reduced plan review cost Opinion of Probable Cost: $268,000
1,300 sq ft, 3-bedroom, 2 bathroom, builder-grade stick-built home - Including property survey, plans, permits, septic replacement, fill dirt and compaction, overhead and profit
- Not including costs for land, outside financing, property taxes, real estate commissions - Opinion is based on a mastered floor plan with reduced plan review cost Opinion of Probable Cost: $235,000
1,300 sq ft, 2-bedroom, 2-bathroom, turn-key manufactured home on permanent foundation - Including property survey, plans, permits, septic replacement, fill dirt and compaction, overhead and profit
- Not including costs for land, outside financing, property taxes, real estate commissions 71 Town of Paradise
Business & Housing
5555 Skyway
Paradise, CA 95969
(530) 872-6291
Working together to rebuild a thriving community.
How to participate:
1. Submit SOQ as soon as possible, as this RFQ will remain open and active until retracted.
2. All SOQs must be signed, dated and submitted in PDF format via email to [email protected].
3. Contractor SOQ must include, but is not limited to, the following information:
a) Firm’s business name and office and mailing addresses. b) Firm’s email address(es) and office and cell phone number(s) for primary contact person(s). c) Names and titles of firm’s principal and primary contact person(s). d) Statement that firm is a minority and/or women business enterprise, if applicable. e) Statement that firm is a Section 3 business, if applicable. (See Exhibit A) f) Type of construction that firm most commonly engages and specializes in, and has experience with (eg. residential, commercial, industrial, renovations, new construction, etc.). g) CA contractor license number(s), classification(s), and expiration date(s). h) Federal and/or State certifications (if applicable). i) Unique Entity ID (sam.gov) and DIR number. Interested firms who do not already have a Unique Entity ID should register with sam.gov to be assigned an ID j) Evidence of current general liability insurance coverage (min $1,000,000 required). k) Evidence of current Worker’s Compensation insurance coverage as required by law (as/if applicable).
l) References and related contacts for construction projects completed within the past 2 years.
References must include past customers and material suppliers.
Priority is given to Section 3 businesses. Section 3 is a federal directive created to encourage low-income housing projects to employ low-income laborers. Selected contractors, whether or not they qualify as a Section 3 business, should be prepared to report on the labor hours completed by each employee and subcontractor. See Exhibit A.
Contracts will not be awarded to debarred, suspended, or ineligible contractors and participants. 72 Selected contractors will be required to sign disclosures prohibiting lobbying and conflicts of interest.
Selected contractors must comply with EO 11246, Equal Opportunity Employment.
Contact
For any questions regarding this program or RFQ, please contact Sarah Richter, Housing Program Coordinator at 530-872-6291 x 130 or [email protected] Interested GC’s should be prepared to do the following, and will need to require the following of all subcontractors, in order to meet all federal requirements required by the program funding:
1. Maintain clear, accurate financial records related to the project;
2. Maintain clear, accurate payroll records for each employee who works on the project;
3. Maintain record of the hours each worker spends on the project;
4. Make qualitative efforts to hire low-income workers for available positions, especially low-income workers who live near the project site;
5. Maintain liability insurance;
6. Maintain worker’s compensation insurance, if required;
7. Post notices at the job site relating to employee rights and keeping a drug-free workplace;
8. Sign disclosures prohibiting lobbying and conflicts of interest;
9. Submit timely records and invoices to the Town of Paradise Housing Program Coordinator.
73 EXHIBIT A
Town of Paradise
Section 3 Project Implementation Plan
07/2021
OVERVIEW
Section 3 Goals
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires recipients of certain HUD financial assistance to provide job training, employment, and contracting, to the greatest extent feasible, for low- or very low-income residents in connection with projects and activities in their neighborhoods. Section 3 is race and gender-neutral and is NOT the same as WBE/MBE.
Contracts using over $200,000 in HUD funding for trigger Section 3. When triggered, best efforts must be made to extend Section 3 opportunities to verified Section 3 residents and business concerns to meet these minimum numeric goals:
1. Twenty-five percent (25%) of the total hours on a Section 3 project must be worked by Section 3 workers; and
2. Five percent (5%) of the total hours on a Section 3 project must be worked by Targeted Section 3 workers.
Preference for Contracting with Section 3 Business Concerns The Town of Paradise is required by HUD Regulation 24 CFR Part 75 to make best efforts to contract with businesses that direct economic opportunities to Section 3 workers. As part of its qualitative efforts, the Town of Paradise has elected to institute a preference which stipulates that contract award shall be given to the bidder using the highest number of qualified Section 3 subcontractors and/or workers if the bid is reasonable and no more than ten percent (10%) higher than the lowest responsive bid from any qualified source. This benefit applies to ALL projects, even if Section 3 is not triggered.
Programmatic Responsibilities
Contractors and/or Subcontractors are expected to meet the minimum goals listed above, to the greatest extent feasible. (Note: Section 3 maynot be required for all projects, but best efforts to comply with the minimum numerical goals are still highly recommended.) All efforts to utilize Section 3 businesses and workers should be documented, and this Section 3 Project Plan should be submitted for all relevant project bids.
Submit FORMS 1 & 2 for all projects or FORMS 1 – 5 for all Section 3-triggered projects (over $200,000) at the time of the bid submission or application for funding.
NOTE TO BIDDERS: You must return ALL applicable forms in this packet with your bid. Failure to do so may result in your bid being disqualified.
74 Town of Paradise
Section 3 Project Plan
2 Definitions
Low or Very-Low income means:
Annual gross income does not exceed limit published by HUD for the area in which the individual resides. HUD Income Limits can be found here: https://tinyurl.com/hpsyarzw Section 3 Worker means:
(1) Any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented:
(i) The worker's income for the previous or annualized calendar year is below the income limit established by HUD.
(ii) The worker is employed by a Section 3 business concern. (iii) The worker is a YouthBuild participant.
(2) The status of a Section 3 worker shall not be negatively affected by a prior arrest or conviction. (3) Nothing in this part shall be construed to require the employment of someone who meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the qualifications of the position to be filled.
Section 3 Business means:
(1) A business concern meeting at least one of the following criteria, documented within the last six-month period:
(i) It is at least 51 percent owned and controlled by low- or very low-income persons; (ii) Over 75 percent of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers; or
(iii) It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.
(2) The status of a Section 3 business concern shall not be negatively affected by a prior arrest or conviction of its owner(s) or employees.
(3) Nothing in this part shall be construed to require the contracting or subcontracting of a Section 3 business concern. Section 3 business concerns are not exempt from meeting the specifications of the contract.
Targeted Section 3 worker for housing and community development financial assistance means a Section 3 worker who is, in addition to being low-income:
(1) A worker employed by a Section 3 business concern; or (2) A worker who currently fits or when hired fit at least one of the following categories, as documented within the past five years:
(i) Living within the service area or the neighborhood of the project; or (ii) A YouthBuild participant.
Service Area or neighborhood of the project means:
An area within one mile of the Section 3 project or, if fewer than 5,000 people live within one mile of a Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census. Per the 2020 U.S. Census, the population of the Town of Paradise is 4,764.
More definitions can be found in the Code of Federal Regulations, Title 24, Subtitle A, Part 75 – Economic Opportunities for Low-and Very Low-Income Persons
75 Town of Paradise
Section 3 Project Implementation Plan
3 FORM 1 – SECTION 3 ASSESSMENT AND CERTIFICATIONS
This form is required for ALL projects and must be submitted with bid or application for funding.
ProjectInformation
Project Name:
Project Location or Address(es):
Developer/ContactorInformation:
Name of Firm: Address:
Authorized Representative: Title:
Phone: Email:
1. Check all that apply to your business:
Your business is at least 51% owned and controlled by low- or very low-income persons Over 75% of the labor hours performed for your business over the past three-month period were performed by Section 3 workers
Your business is at least 51% owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing
None of the above
2. Will you be hiring new employees or providing new training opportunities because of this contract? Yes No
3. Will you be using subcontractors to complete this project? Yes No
4. Is your bid/contract amount greater than $200,000? Yes No If response to item 4 above is “YES,” Section 3 requirements will be fully enforced on this project. Failure to comply may result in the suspension offunding. Please complete the certifications below and submit FORMS 1-5 with your bid or application for funding.
If NO, Section 3 participation is strongly encouraged but not required. Please attempt to meet the Section 3 goals to the greatest extent feasible. You muststill complete the certifications belowas applicable and return FORMS 1 and2 with your bid or application for funding.
Certifications YES NO N/A
All
Projects:
By completing and signing this form, I agree to comply with all applicable requirements of the Section 3 of the Housing and Urban Development Act of 1968 (24 CFR Part 75) I understand that I must complete and submit FORMS 1 and 2 and submit them with my bid even if my bid is under $200,000.
Projects
over
$200K:
I have included/will include the Section 3 Clause (FORM 5) in all subcontracts for which Section 3 compliance is required.
I understand that I am required to submit quarterly and final Section 3 reports (FORM 6), associated forms as applicable (FORMS 2, 3 and 4) and supporting documentation.
I agree that my company has made and will continue to make efforts “to the greatest extent feasible” to comply with Section 3 as required by HUD.
I understand the minimum numerical goals for Section 3 participation and I have completed FORMS 1 through 4 and attached them to my bid.
I declare that all statements contained inthis form and any accompanying documents are true and correct, and made with full knowledge that all statements given are subjectto investigation and that any false or dishonest answer to any question may be grounds for denial or revocation of funding or other penalties as prescribed under 18 U.S. Code § 1001.
Authorized Representative Signature Date
76 4
Town of Paradise
Section 3 Project Implementation Plan
FORM 2 – SUBCONTRACTOR INFORMATION, VERSION (1, 2, 3)
This form is required for ALL projects (regardless of whether Section 3 is triggered) and must be submitted with bid or application for funding. If project is over $200,000 in HUD funds, this form must be updated and re-submitted at the time of contract execution and again with the final Section 3 compliance report.
Project Name Contract Execution Date Construction Start Date Today’s Date Check the box that applies and complete the table if applicable:
This project WILL NOT utilize subcontractors.
This project MAY utilize the following subcontractors:
No. Sect3
Bus. Subcontractor Name Subcontractor Address and Phone Number Trade Subcontract Amount
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
77 Town of Paradise
Section 3 Project Implementation Plan
5 FORM 3 – LIST OF PERMANENT EMPLOYEES, VERSION (1, 2)
This form is required for all Section 3-triggered projects (over $200,000) and must be submitted with bid or application for funding and again with the final Section 3 compliance report.
Project Name Contract Execution Date Construction Start Date Today’s Date
Please list all current permanent employees (both full and part-time) employed by your company (or local/regional office) as of the signature date on FORM 1, as well as employees of all subcontractors working on this project. Use additional sheets as necessary. A computer-generated employee registry can be provided in lieu of this form if it includes the worker’s name, employer and job category and indicates Section 3/targeted Section 3 status.
No. Name of Worker Employer Job
Category/Trade
Section 3
Worker (Y/N)
Targeted
Section 3
Worker (Y/N)
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
Please note that your business may be eligible for Section 3 Business certification if at least 75% of your labor hours performed on all contracts over the past three-month period were performed by employees who meet one of the following categories below:
• The worker lives within one mile of the Section 3 project (or, if fewer than 5,000 people live within one mile of the Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census); • The worker is a HUD YouthBuild participant; or
• The worker's income for the previous or annualized calendar year is below 80% of the current area median income for the area in which the worker resides. (Use the worker’s annual gross income based on AMI for a single-person household.) HUD income limits can be found at 78 https://www.huduser.gov/portal/datasets/il.html.)
Town of Paradise
Section 3 Project Implementation Plan
6 FORM 4 – DOCUMENTATION OF QUALITATIVE EFFORTS
This form is required for all Section 3-triggered projects (over $200,000) and must be submitted with bid or application for funding, as well as with all quarterly or final compliance reports that indicate numeric goals were not met. Please fill out this form completely. Attach additional pages if needed.
Project Name Contract Execution Date Construction Start Date Today’s Date
1. Describe all efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing and community development programs, to the greatest extent feasible, to Section 3 workers. Attach additional pages if needed.
Attach supporting documentation such as:
• Copies of all publications, notices, pictures of posted notices, and other outreach materials. • List of all Section 3 workers that responded to your responded to your outreach efforts (e.g., submitted job applications, phone logs, etc.); were any of them hired? If not, please explain why.
2. Describe all efforts made to notify Section 3 businesses of any subcontracting opportunities generated by HUD financial assistance for this project, to the greatest extent feasible. Attach additional pages if needed.
Attach supporting documentation such as:
• Section 3 Business List used in solicitation. Must have been provided by Town of Paradise prior to solicitation and should be no more than 30 days old at the time of solicitation. • List of Section 3 business included in solicitation and documentation of efforts (emails, letters, phone, logs, etc.).
• List of Section 3 businesses that responded to your solicitation and/or outreach efforts; were any of them hired? If not, please explain why.
• Copies of all publications, notices, pictures of posted notices, and any other outreach material utilized. 79 Town of Paradise
Section 3 Project Implementation Plan
7 FORM 4 – DOCUMENTATION OF QUALITATIVE EFFORTS (CONTINUED)
3. Describe all additional qualitative efforts made to comply with Section 3 requirements. See below for examples. Attach all applicable supporting documentation.
4. If there are employment opportunities associated with your project, include a draft of the proposed signage.
Section 3 signage should be posted at the construction site. Signage must be large enough to be visible from the street. The sign must (a) identify the name of the project, (b) state the project is a HUD Section 3 Project, and (c) include the name, phone number and email address of an appropriate point of contact regarding employment opportunities.
Examples of Qualitative Efforts
• Engage in outreach efforts to generate job applicants who are Targeted Section 3 workers • Provide training or apprenticeship opportunities
• Provide technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching) • Assist or connect Section 3 workers with drafting resumes, preparing for interviews, and finding job opportunities
• Hold one or more job fairs
• Provide or refer Section 3 workers to services supporting work readiness and retention (e.g., work readiness activities, interview clothing, test fees, transportation, childcare) • Provide assistance to apply for or attend community college, a four-year educational institution, or vocational/technical training
• Help Section 3 workers to obtain financial literacy training and/or coaching • Engage in outreach efforts to identify and secure bids from Section 3 business concerns • Provide technical assistance to help Section 3 business concerns understand and bid on contracts • Divide contracts into smaller jobs to facilitate participation by Section 3 business concerns • Provide bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns • Promote use of business registries designed to create opportunities for disadvantaged and small businesses • Outreach, engagement, or referrals with the state one-stop system as defined in Section 121(e)(2) of the Workforce Innovation and Opportunity Act
• Other:
80 Town of Paradise
Section 3 Project Implementation Plan
8 FORM 5 – SECTION 3 CONTRACT CLAUSE
All Section 3 covered contracts and subcontracts must include the following clause:
I. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 USC.1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance, or HUD-assisted projects covered by Section 3, shall to the greatest extent feasible be directed to low and very low-income persons, particularly persons who are recipients of HUD assistance for housing.
II. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 75, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 75 regulations.
III. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this Section 3 Clause and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.
IV. The contractor agrees to include this Section 3 Clause in every subcontract subject to compliance with regulations in 24 CFR part 75, and agrees to take appropriate actions, as provided in an applicable provision of the subcontract or in this Section 3 Clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 75. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 75.
V. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 75 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 75.
VI. Noncompliance with HUD's regulations in 24 CFR part 75 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.
VII. With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 USC 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises.
Parties to this contract that are subject to the provisions of Section 3 and section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b). 81 9
Town of Paradise
Section 3 Project Implementation Plan
FORM 6 – SECTION 3 PROJECT COMPLIANCE REPORT
This form is required for all Section 3-triggered projects (over $200,000) and must be submitted according to the following schedule:
Quarterly
January – March: Due April 15th
April – June: Due July 15th
July – September: Due October 15th
October – December: Due January 15th
Final
Must cover the entire project from start date to
completion date. Final report is due 30 days after
completion.
Project Name: Contractor:
Project Location: Report Type: Quarterly Final
Reporting Period Start Date: Reporting Period End Date:
I. SECTION 3 CONTACT INFORMATION
II. SECTION 3 HOURS WORKED – Report the number of Section 3 hours for this reporting period. Attach time records to support the information provided.
A. Total hours worked this period by
all workers
B. Number of Section 3 hours
worked this period
% Section 3 hours
(Divide column B by column A)
III. TARGETED SECTION 3 HOURS WORKED – Report the number of targeted Section 3 hours for this reporting period.
Attach time records to support the information provided.
A. Total hours worked this period by
all workers
B. Number of targeted Section 3 hours
worked this period
% Targeted Section 3 hours
(Divide column B by column A)
IV. QUALITATIVE EFFORTS – If this report indicates numeric goals were not met, attach FORM 4 describing any qualitative efforts made to increase Section 3 participation for this reporting period.
V. ADDITIONAL ATTACHMENTS – For the final Section 3 compliance report, attach FORMS 2 and 3 with updated information (versions 2 or 3).
I declare that all statements contained in this form and any accompanying documents are true and correct, and made with full knowledge that all statements given are subject to investigation and that any false or dishonest answer to any question may be grounds for denial or revocation of funding or other penalties as prescribed under 18 U.S. Code § 1001.
Signature: Date:
Print Name: Title:
Phone: Email:
Contractor Section 3 Point of Contact:
82 Town of Paradise
Section 3 Project Implementation Plan
FORM 7 – SECTION 3 BUSINESS OUTREACH FORM
Please complete this form to determine if your business may qualify as a Section 3 Business. Businesses that qualify will be contacted by Town of Paradise Section 3 Coordinator to complete a Section 3 Business Application and asked to provide additional documentation to verify their status as a Section 3 Business.
What is Section 3?
Section 3 is a provision of the Housing and Urban Development Act of 1968 (24 CFR Part 75) that requires recipientsof certain HUD financial assistance, to the greatest extent possible, to provide job training, employment, and contract opportunities for low- or very low-income residents in connection with projects and activities in their neighborhood.
A business can qualify as Section 3 if it meets one of the following criteria:
A. It is at least 51% owned and controlled by low- or very low-income persons; B. Over 75% of the labor hours performed for the business over the past three-month period were performed by workers who met at least one of the criteria below; or
C. It is at least 51% owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.
Workers must meet one of the following criteria for a business to qualify as Section 3 under item B above:
• Reside within one mile of the Section 3 project (or, if fewer than 5,000 people live within one mile of the Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census);
• Be a HUD YouthBuild participant; or
• Income for the previous or annualized calendar year is below 80% of the current area median income for the area in which the worker resides. (Use the worker’s annual gross income based on AMI for a single-person household.) HUD income limits can be found at https://www.huduser.gov/portal/datasets/il.html.) Subcontractor Information
Company Name:
Contact Person:
Address:
City: State: Zip:
Phone: Email:
I have reviewed the above information and my business MAY QUALIFY as a Section 3 Business. Please contact me about completing an application.
I have reviewed the above information and my business DOES NOT QUALIFY as a Section 3 Business.
Signature of Business Owner Date
Please return completed forms to:
Town of Paradise Section 3 Program
5555 Skyway
Paradise, CA 95969
(530) 872-6291 ext. | email
83 Town of Paradise
Section 3 Project Implementation Plan
FORM 8 – SECTION 3 WORKER OUTREACH FORM
Please complete this form to determine if you may qualify as a Section 3 or Targeted Section 3 Worker. Workers who qualifywill be contacted by Town of Paradise Section 3 Coordinator to complete a Section 3 Worker Application and asked to provide additional documentation to verify their status as a Section 3 or Targeted Section 3 Worker.
What is Section 3?
Section 3 is a provision of the Housing and Urban Development Act of 1968 (24 CFR Part 75) that requires recipientsof certain HUD financial assistance, to the greatest extent possible, to provide job training, employment, and contract opportunities for low- or very low-income residents in connection with projects and activities in their neighborhood.
A worker can qualify as Section 3 if they meet one of the following criteria:
• Are employed by a Section 3 business concern;
• Are a HUD YouthBuild participant; or
• Their income for the previous or annualized calendar year is below 80% of the current area median income for the area in which the worker resides. (Use the worker’s annual gross income based on AMI for a single-person household.) HUD income limits can be found at https://www.huduser.gov/portal/datasets/il.html.) A worker can qualify as targeted Section 3 if they meet one of the following criteria:
• Are employed by a Section 3 business concern.
• Are a HUD YouthBuild participant; or
• Reside within one mile of the Section 3 project (or, if fewer than 5,000 people live within one mile of the Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census);
WorkerInformation
Name:
Employer Name:
Address:
City: State: Zip:
Phone: Email:
I have reviewed the above information and I MAY QUALIFY as a Section 3 or Targeted Section 3 worker. Please contact me about completing an application.
I have reviewed the above information and I DO NOT QUALIFY as a Section 3 or Targeted Section 3 worker.
Signature Date
Please return completed forms to:
Town of Paradise Section 3 Program
5555 Skyway
Paradise, CA 95969
(530) 872-6291 ext. | email
84 Town of Paradise HOME Program Infill New Construction for First-Time Homebuyer Program Guidelines Page 1
Town of Paradise
HOME Investment Partnerships
Program (HOME)
Infill New Construction for First-Time
Homebuyers
Program Guidelines
Serving the Town of Paradise
85 Town of Paradise HOME Program Infill New Construction for First-Time Homebuyer Program Guidelines Page 2
HOME 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 BUILD PROCESS
1.4 THE HOME PURCHASE PROCESS
1.5. HOMEBUYER COSTS
1.6. HOMEBUYER EDUCATION
1.7. CONFLICT-OF-INTEREST REQUIREMENTS
1.8. NON-DISCRIMINATION REQUIREMENTS
2.0. CONTRACTOR QUALIFICATIONS
3.0 APPLICANT QUALIFICATIONS
3.1. CURRENT INCOME LIMITS
3.2. INCOME QUALIFICATION CRITERIA
3.3. DEFINITION OF AN ELIGIBLE HOMEBUYER
4.0. HOUSING UNIT ELIGIBILITY
4.1. LOCATION AND CHARACTERISTICS
4.2. CONDITIONS
4.3 ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE
4.4. PROPER NOTIFICATION AND DISCLOSURES
5.0. PURCHASE PRICE LIMITS
6.0. THE PRIMARY LOAN
A. QUALIFYING RATIOS
B. INTEREST RATE
C. LOAN TERM
D. IMPOUND ACCOUNT
7.0. 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
8.0. PROGRAM LOAN REPAYMENT
8.1. PAYMENTS ARE VOLUNTARY
8.2. RECEIVING LOAN REPAYMENTS
8.3. DUE UPON SALE OR TRANSFER
8.4. LOAN SERVICING POLICIES AND PROCEDURES
8.5. LOAN MONITORING PROCEDURES
9.0. PROGRAM LOAN UNDERWRITING AND APPROVAL
9.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN
9.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
9.3. ESCROW PROCEDURES
10.0. SUBORDINATE FINANCING
11.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES
11.1. DEFINITION OF EXCEPTION
11.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
12.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
86 Town of Paradise HOME Program Infill New Construction for 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 PER-UNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS
ATTACHMENT D: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT FE: DISCLOSURE TO SELLER WITH VOLUNTARY, ARM'S-LENGTH
PURCHASE OFFER
ATTACHMENT FJ: STANDARD CONTRACT LANGUAGE, ALL CONTRACTS AND SUBCONTRACTS 87 Town of Paradise HOME Program Infill New Construction for First-Time Homebuyer Program Guidelines Page 4
TOWN OF PARADISE
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 provide assistance to eligible homebuyers by increasing housing stock and assisting first-time homebuyers with a home purchase. The Program provides this assistance by paying for the construction of homes on empty parcels within the Town of several homes at one time, and then selling the homes to preapproved buyers at the lower of the appraised value or the cost to develop lowest market rate, and crediting back proceeds from the sale to the buyer a deferred payment “silent” second priority loan as “Gap” financing toward the purchase price and closing costs of the home that will be occupied by the homebuyers as their primary residence during the HOME affordability period. The Program will be administered by The Town of Paradise, (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 88 Town of Paradise HOME Program Infill New Construction for First-Time Homebuyer Program Guidelines Page 5
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 will be part of the Town’s regular homebuyer workshops to help educate homebuyers about the homebuying process and future responsibilities.
B. The Program Operator will market the Program to 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. The Program Operator will take appropriate steps to ensure effective communication with disabled housing applicants, residents and members of the public. Housing constructed under the program will permit modifications to plans so that no otherwise qualified applicant is excluded due to disability.
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-first-served 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 potential homebuyer is given a program application, along with the following forms:
Program Summary Guidelines, List of Participating Lenders, Lead-Based Paint Disclosure and the EPA Booklet (Protect Your Family from Lead in Your Home).
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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 6 months, as stated in a written assistance denial letter.
After reviewing of the Program application and all required documents, the Town issues the Buyer a pre-approval letter for participation in the Infill New Construction program.
C. Each applicant must participate in individual Homebuyer Counseling consistent with the requirements in Section 1.6 of these Program Guidelines.
1.3 THE HOME BUILD PROCESS
A. Formerly developed lots in Paradise will be purchased by the Town for construction of single family dwellings not more than 10 housing units. Each contractor selected will be limited to no more than 4 units under one contract. Lots purchased for construction will have been vacant, with no habitable structure remaining, for a minimum of 90 days. Each property purchased will undergo the following:
a. Environmental Review
b. Title search
c. Property Survey
d. Septic Inspection
e. Weed Abatement
B. A Request for Proposals will be issued, complying with procurement standards found in 2 CFR 200.317-327 and conflict of interest provisions found in 24 CFR 92.356, requesting bids for constructing homes on each property. Priority will be given to Section 3 contractors. Each property will require bids for either a two-or three-bedroom home, depending on the parcel size and septic capacity. By having one contractor build multiple homes simultaneously, the Town expects to see cost savings possible with economy of scale. Each home will be built to required WUI standards and current state and local building codes. Building plans are such that, should a disabled household require accommodations, plans can be modified to meet the household’s needs, in compliance with Section 504 of the Rehabilitation Act of 1973.
Acceptable bids will be those that do not exceed the HOME maximum per unit subsidy limit. Selected contractors shall comply with all items noted in 90 Town of Paradise HOME Program Infill New Construction for First-Time Homebuyer Program Guidelines Page 7
Section 2 of these guidelines. Selected contractor is not subject to DavisBacon Wage Requirements provided the contract does not exceed 12 housing units or 8 units on contiguous lots. Construction contracts executed will contain the standard language described in Attachment J. Selected contractors are required to comply with Section 3 hiring and reporting requirements.
C. Buyers who have been pre-approved for a first mortgage and for assistance from the Town of Paradise will be invited to choose from the “shovel-ready” project sites and chose a building plan. Financial feasibility will be determined, and the Buyer will enter a purchase contract to purchase a home upon completion of construction.
D. Due to the high availability of residential properties in Paradise, many eligible applicants already own vacant residential parcels in Paradise that may be eligible for new construction. Should a property meet all criteria required by other properties, (distance from other housing units, does not require hazard mitigation, and has clear title) the Town may elect to have highly pre-qualified Buyers sell the property to the Town for the duration of housing unit construction and sold back to the Buyer upon completion.
Consideration for the property will be deposited into an escrow account to be used as the Buyer’s down payment contribution for the purchase of the completed home. Should the Buyer not complete the purchase of the home at the end of construction, the funds held in escrow will be released to them, but they will no longer have ownership or purchase rights to the property and the Town will sell the property on the open market to the nextanother qualified buyer.
E. Upon execution of a purchase contract, the contractor will be issued a Notice to Proceed to construct the house. Construction is expected to take no more than 6 months. The Town of Paradise will pay the contractor directly for development hard costs and related soft costs, as eligible under 24 CFR 92.206.
F. The Town of Paradise shall pay the contractor the contract price as provided in a contract for construction using available HOME Program Income or Recaptured Funds. The Town will make progress payments as the work proceeds, at the completion of pre-determined steps. Work will meet standards of quality established in the contract and be verified by a qualified Building Inspector. The Town may retain a maximum of 10% of the amount of any payment if work is substantially complete but not satisfactory. The contractor will furnish an unconditional waiver and release for each payment.
G. When construction completion is imminent, the Buyer will have income, 91 Town of Paradise HOME Program Infill New Construction for First-Time Homebuyer Program Guidelines Page 8
assets, and credit verified with third parties for final loan approval. The property will be appraised by the first lender, and close of escrow will be scheduled. Close of escrow will not occur until Certificate of Occupancy has been issued.
H. Should a Buyer fail to purchase the home upon completion of construction, the purchase contract will be canceled, and the home will be made available to purchase by any other qualified Buyer. If the property is not sold to an eligible homebuyer within 9 months of completion of construction, the Town will rent the home to an eligible tenant.
I. Sales proceeds will be deposited into the Town’s HOME reuse account as Recaptured Funds or the CDBG reuse account, respectively, as Recapture Funds. This allows the Town to recoup most of the cost of construction in order to both assist the homebuyer directly with only the amount down payment assistance necessary and avoid exceeding the HUD per unit subsidy in accordance with 24 CFR 92.250. The sales price of the property to the Buyer shall be the lesser of either the appraised market value or the actual cost to acquire and construct the housing unit.
Development Soft Costs: $ 45,000
Construction Costs: $240,000
Closing Costs: $ 10,000
Total Expenses: $295,000
Purchase Price (total cost): $295,000
Estimated down payment
assistance:
$100,000
Total returned to Recaptured Funds: $195,000
For HOME, the purchase price limits for this Program shall not exceed the HOME Homeownership Value Limit for Town’s County as updated by HCD.
Attachment C: HOME HOMEOWNERSHIP VALUE LIMIT *Town will update these limits annually as HCD provides new information.
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1.4. THE HOME PURCHASE PROCESS
A. Buyer, pre-approved by a first primary lender and the Town, is selected from the waitlist to choose a property and execute a purchase contract.
The Buyer agrees to contribute 2% towards the purchase of the home and maintain program eligibility during the course of construction.
B. The Town will verify all income and assets with third parties and determine the financing gap. See the following summary of the gap calculation below:
C. The housing unit selection process will be conducted by the homebuyers of shovel-ready project sites and construction cost estimates. a. Homebuyer has no power of eminent domain and, therefore, will
DEBT SERVICE
FOR A FAMILY OF FOUR EARNING $4,500 PER MONTH
HOUSING PAYMENTS TOTAL OVERALL PAYMENTS
Principal & Interest Payment $1179 $1,604 Housing
Insurance $ 125 +$200 Other Debt Service
Taxes $ 300 $1,804 Total Debt Service
Total Housing Expense $1,604.00 (Overall debt service per month is 40% of $4,500) (PITI is 35% of $3,388)
OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 150
Credit Card Payment 50
Total Other Debt $ 200
A $1604 per month loan payment equates to borrowing $195,000 at 6% for a 30 year term.
SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $4,500 PER MONTH
Purchase Price of Property $300,000
Less Primary loan amount $194,000
Less down payment of 2% $ 6000
Equals “GAP” $100,000
Plus estimated allowable settlement charges 8,500
Equals Total Subsidy $ 108,500
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not acquire the property if negotiations fail to result in an amicable agreement;
b. Homebuyer’s offer is an estimate of the fair market value of the housing unit, to be finally determined by a state-licensed appraiser;
The housing unit will be subject to inspection. The housing unit must comply with state and local codes at the time of construction and local health and safety standards.
D. Buyer and Town execute a standard form purchase and sale agreement.
The purchase and sale agreement will be contingent on the household and housing unit meeting Program eligibility requirements and receiving Program loan approval, and Certificate of Occupancy of the subject property. The Town verifies applicant eligibility, housing unit and loan eligibility and amount of assistance to be provided consistent with these guidelines.
E. When primary lender requirements are met, Program funds are deposited into escrow, with required closing instructions and loan documents. When allowable by the first primary lender, Town funds will be in the form of seller credit towards the purchase, evidenced with a Promissory Note and deferred second Deed of Trust.
F. 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 for full replacement cost of the housing unit. A policy of Title Insurance naming the Sponsor as insured is also required.
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1.5. 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 two percent (2%) of the purchase price but may contribute more if desired. These funds can be gifted from a relative; however, institution grants do not count toward the homebuyer’s minimum contribution. If the household is participating in a self-help build, their hours-worked can satisfy the 2% contribution.
C. C. Sponsor will provide a subsidy that is no greater than the applicable HOME Maximum Per-Unit Subsidy Limit for the State of California and no more than the amount of the buyer’s first primary mortgage plus their down payment contribution. 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 25% to 35% 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.
E. Proceeds of the sale will be deposited back into the Town’s HOME and/or CDBG reuse accounts, respectively, as Recaptured Funds.
1.6. 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 evidence that the counseling provider was HUD-certified when the counseling certification was issued.
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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.
1.7. 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 96 Town of Paradise HOME Program Infill New Construction for First-Time Homebuyer Program Guidelines Page 13
elected official or 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.
1.8. 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 CONTRACTOR QUALIFICATIONS
2.1 Selected contractors will comply with Section 3 labor compliance and reporting, Federal debarment statutes, and be appropriately licensed for the work they bid.
2.2 Selected contractors will supply the Town with performance and payment bonds to assure completion of the contract.
2.3 Selected contractors will be insured against liability in an amount not less than $1,000,000, maintain minimum state-required Work Comp insurance, and maintain unemployment, disability, and liability insurance, if required by law.
2.4 Selected contractors will comply with applicable labor standards/prevailing wage provisions, as applicable, and comply with Equal Opportunity Requirements.
2.5 Selected contractors will comply with VAWA requirements (24 CFR 92.359), Contract Work Hours and Safety Standards (29 CFR Part 5 and 29 CFR Part 1926), Copeland Anti-Kick Back Act regulations (29 CFR Part 3), and conflict of interest provisions in 24 CFR 92.505.
2.6 Selected contractors will certify compliance with the Byrd Amendment prohibiting lobbying, and 24 CFR 92.257 and 5.109 governing engagement in inherently religious activities.
2.7 Selected contractors will enter into a construction contract with the Town of Paradise that includes a written scope of work, a line-itemed bid, allowable 97 Town of Paradise HOME Program Infill New Construction for First-Time Homebuyer Program Guidelines Page 14
timeframes for completion, dispute resolution procedures, and disbursement steps. The contract shall specify that work will be performed in accordance with federal, state, and local housing and building codes, regulations and statutes.
3.0 APPLICANT QUALIFICATIONS
3.1. 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 don’t 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.
3.2. 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 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 defined in § 24 CFR 5.609
(a) Annual income includes, with respect to the family:
(1) All amounts, not specifically excluded in paragraph (b) of this section, 98 Town of Paradise HOME Program Infill New Construction for First-Time Homebuyer Program Guidelines Page 15
received from all sources by each member of the family who is 18 years of age or older or is the head of household or spouse of the head of household, plus unearned income by or on behalf of each dependent who is under 18 years of age, and
(2) When the value of net family assets exceeds $50,000 (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and the actual returns from a given asset cannot be calculated, imputed returns on the asset based on the current passbook savings rate, as determined by HUD.
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.)
See Attachment B: Asset Inclusions and Exclusions
3.3. 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:
“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 99 Town of Paradise HOME Program Infill New Construction for First-Time Homebuyer Program Guidelines Page 16
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.
4.0. HOUSING UNIT ELIGIBILITY
4.1. 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 Town of Paradise.” B. Housing unit types eligible for the Homebuyer Program are new homes constructed as a part of this HOME Infill New Construction Program.
C. All housing units will be built to current California Building Code requirements and Wildland Urban Interface requirements as imposed by the Town of Paradise and will be inspected to ensure the unit 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. Before the close of escrow, the housing unit will have received a Certificate of Occupancy and Clearance to Record.
4.2. CONDITIONS
A. 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 100
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does not include Activity Delivery and Administration Costs paid to the State Recipient by HCD):
Amount of HOME Assistance Period of Affordability in Years Under $15,000 $25,000 5 years
$15,000to $40,000 $25,000 to
$50,000
10 years
Over $40,000 $50,000 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.
B. 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 Infill New Construction homebuyer project requires completion of a HUD CEST form from the Environmental Review - HUD Exchange webpage, including use of its worksheets for related laws and authorities.
4.3. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Eligible homes will be those that are newly constructed for purchase under this HOME Infill New Construction Program. 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.
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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 anti-displacement 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 lowincome housing, which is demolished or converted. The implementing regulations for Section 104(d) can be found in 24 CFR Part 42, subpart (C).
4.4. PROPER NOTIFICATION AND DISCLOSURES
A. Upon selection of a housing unit, the 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 property must receive an acquisition notice (Attachment F) prior to submission of the Program Operator’s original offer.
This notice will be included in the contract and must be signed by all owners on title.
5.0. 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.
6.0. 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 debtto-income ratio maximums herein. 102
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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. Adjusted gross income may be used when calculating borrower ratios (not for income eligibility) when a household has considerable income from other adults in the household who are not applicants to the primary loan or homebuyer assistance, to ensure the borrower(s) is/are not cost burdened.
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.
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.
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D. IMPOUND ACCOUNT
All households will be required to have impound accounts for the payment of taxes and insurance to ensure they remain current.
7.0. 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.
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 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 unless the first loan is underwritten by USDA for a longer term, in which case the Program’s loan term will match that of the first..primary.
The Program loan’s interest rate shall be 1% simple interest for the first 10 years only.
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 104
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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.
8.0. 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.
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.
8.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time, without penalty.
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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Payments will be applied to principal, thus reducing accrual of simple interest.
8.2. RECEIVING LOAN PAYMENTS
A. Voluntary Program loan payments, and loan payoffs, shall be made to:
Town of Paradise
5555 Skyway
Paradise, CA 95969
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 Reuse 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.
8.3. 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, to a person who was not included in the household at the time of application approval, 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 was part of the household at the time of application approval and continues to meet occupancy requirements, or if the heir’s household meets each of the following requirements:
• does not exceed the current HOME income limits; and
• 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.
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8.4. 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.
8.5. 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
9.0. 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 back-up documentation of all income and assets.. During the course of escrow, the primary lender shall submit copies of the following to the Sponsor: ; 1) mortgage application with good faith estimates and first mortgage disclosures; 2) full mortgage credit report 3) current third-party income verifications and verifications of assets; 4) homeownership education certificate, if applicable; and 5) 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
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 107
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use the information on the credit report for each adult borrower for its calculations of front-end and back-end debt-to-income ratios. The minimum credit score for program consideration is 620 with no items in collections, with an exception for medical debt.
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 e-mailed or faxed. Based on receipt and review of the documents, the Program Operator will estimate household income (using the most-recent HCD program’s guidance on income calculation and determination), and homebuyer certification (review of credit report and income taxes). Documentation of affordability shall then analyzed, 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. 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 crosschecking all the primary lender information, the final Program loan amount approved will fall within the affordability parameters of the Program.
9.1. 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 loan funds for the homebuyer are provided to the escrow company.
9.2. 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 108
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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.
9.3 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).
10.0. 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.
11.0. 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, and approved by the Town Council.
11.1. 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.
11.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its agent may initiate consideration of an exception and prepare a 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.
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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.
12.0. 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. 110
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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/subpartF/subject-group-ECFR174c6349abd095d/section-5.609, regarding income inclusions and exclusions.
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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/section5.603 regarding the definition of Net family assets, to which the regulations at section
5.609 refer.
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ATTACHMENT C
HOME HOMEOWNERSHIP VALUE LIMITS FOR BUTTE COUNTY*
(Limits effective 9/1/202412/1/2025)
EXISTING
CONSTRUCTION
NEW
CONSTRUCTION
(less than 12 months
old)
$375,000$390,000 $392,000$429,000
[]
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
187,658
$208,049
215,122
$252,994
261,595
$327,293
338,419
$359,263
371,477
HOME INCOME LIMITS FOR BUTTE COUNTY*
(Limits effective 6/1/2025)
Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI
$52,60
0 54,400
$60,10
0 62,200
$67,60
0 69,950
$75,10
0 77,700
$81,15
0 83,950
$87,15
0 90,150
$93,15
0 96,350
$99,15
0 102,60
0 *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”). 113
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ATTACHMENT D
LOAN SERVICING POLICIES AND PROCEDURES
FOR TOWN OF PARADISE
The Town of Paradise, 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:
Town of Paradise
Address
City, State, Zip
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 Town of Paradise 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 114
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their taxes and insurance as part of their monthly mortgage payment.
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 1 and 15 of January 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:
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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.
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. 116
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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.
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 past official notice that the loan is due and payable in full. Attempts will be made to assist the homeowner in regaining compliance with loan terms. These attempts will be conveyed in an increasingly urgent manner until compliance is met or the loan is 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 more than the cost of foreclosure (including but not limited to insurance, property taxes, hazard mitigation, property maintenance and security, legal fees, and 117
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resale closing costs) 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.
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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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
_________________________________ _____________________ Buyer Date
Form continues on next page with Seller’s Acknowledgment 119
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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 leadbased 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 theTown of Paradise’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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ATTACHMENT I
Homebuyer Program
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ATTACHMENT J:
STANDARD CONTRACT LANGUAGE:
ALL CONTRACTS AND SUBCONTRACTS
1. The Civil Rights, HCD, and Age Discrimination Acts Assurances:
During the performance of this Agreement, the Grantee assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, national origin, sex, age, or handicap, under any program or activity funded by this contract, as required by Title VI of the Civil Rights Act of 1964, Title I of the Housing and Community Development Act of 1974, as amended, and the Age Discrimination Act of 1975, and all implementing regulations.
2. Rehabilitation Act of 1973 and the “504 Coordinator” The Grantee further agrees to implement the Rehabilitation Act of 1973, as amended, and its regulations, 24 CFR Part 8, including, but not limited to, for Grantees with 15 or more permanent full or part time employees, the local designation of a specific person charged with local enforcement of this Act, as the “504 Coordinator”.
3. The Training. Employment and Contracting Opportunities for Business and Lower Income Persons Assurance of Compliance:
a) The grant activity to be performed under this Agreement is on a project assisted under a program providing direct federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C 1701u.
Recipients, contractors and subcontractors shall direct their efforts to provide, to the greatest extent feasible, training and employment opportunities generated from the expenditure of Section 3 covered assistance to Section 3 residents in the order of priority provided in 24 CFR 135.34(a)(2).
b) The parties to this Agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this contract. The parties to this contract certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. c) The Grantee will include these Section 3 clauses in every contract and subcontract for Work in connection with the grant activity and will, at the direction of the State, take appropriate action pursuant to the contract or subcontract upon a finding that the Grantee or any contractor or subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR Part 135 and, will not let any contract unless the Grantee or contractor or subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.
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d) Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of the Agreement shall be a condition of the federal financial assistance provided to the project, binding upon the Grantee, its successors and assigns. Failure to fulfill these requirements shall subject the Grantee, its contractors and subcontractors, its successors and assigns to those sanctions specified by the grant or contract through which federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 135.
4. Assurance of Compliance with Requirements Placed on Construction Contracts of $10,000 or more
The Grantee hereby agrees to place in every contract and subcontract for construction exceeding $10,000 the Notice of Requirement for Affirmative Action to ensure Equal Employment Opportunity (Executive Order 11246), the Standard Equal Employment Opportunity, and the Construction Contract Specifications. The Grantee furthermore agrees to insert the appropriate Goals and Timetables issued by the U.S. Department of Labor in such contracts and subcontracts.
5. State Nondiscrimination Clause:
a) During the performance of this contract, contractor and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40) marital status, and denial of family care leave.
Contractors and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination and harassment. Contractors and subcontractors shall comply with the provisions of the Housing Act (Government Code, Section 12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7258 et seq.) The applicable regulations of the Fair Employment and Housing Commission implementing Government Regulations, are incorporated into this contract by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. b) Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the contract.
6. Labor Standards –Federal Labor Standards Provisions
The Grantee shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of:
Davis-Bacon Act (40 USC 276a-276a-5) requires that workers receive no less than the prevailing wages being paid for similar work in their locality. Prevailing wages are computed by the Department of Labor and are issued in the form of Federal 123
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wage decisions for each classification of work. The law applies to most construction, alteration, or repair contracts over $2,000.
Copeland “Anti-Kickback” Act (47 USC 276(c) requires that workers be paid at least once a week without any deductions or rebates except permissible deductions.
Contract Work Hours and Safety Standards Act – CWHSSA (40USC 327-333) requires that workers receive “overtime” compensation at a rate of 1-1/2 times their regular hourly wage after they have worked 40 hours in one week.
Title 29, Code of Federal Regulations, Subtitle A, Parts 1, 3 and 5 are the regulations and procedures issued by the Secretary of Labor for the administration and enforcement of the Davis-Bacon Act, as amended.
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Town of Paradise
HOME Investment Partnerships
Program (HOME)
Infill New Construction for First-Time
Homebuyers
Program Guidelines
Serving the Town of Paradise
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HOME 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 BUILD PROCESS
1.4. THE HOME PURCHASE PROCESS
1.5. HOMEBUYER COSTS
1.6. HOMEBUYER EDUCATION
1.7. CONFLICT OF INTEREST REQUIREMENTS
1.8. NON-DISCRIMINATION REQUIREMENTS
2.0. CONTRACTOR QUALIFICATIONS
3.0. APPLICANT QUALIFICATIONS
3.1. CURRENT INCOME LIMITS
3.2. INCOME QUALIFICATION CRITERIA
3.3. DEFINITION OF AN ELIGIBLE HOMEBUYER
4.0. HOUSING UNIT ELIGIBILITY
4.1. LOCATION AND CHARACTERISTICS
4.2. CONDITIONS
4.3. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE
4.4. PROPER NOTIFICATION AND DISCLOSURES
5.0. PURCHASE PRICE LIMITS
6.0. THE PRIMARY LOAN
A. QUALIFYING RATIOS
B. INTEREST RATE
C. LOAN TERM
D. IMPOUND ACCOUNT
7.0. 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
8.0. PROGRAM LOAN REPAYMENT
8.1. PAYMENTS ARE VOLUNTARY
8.2. RECEIVING LOAN REPAYMENTS
8.3. DUE UPON SALE OR TRANSFER
8.4. LOAN SERVICING POLICIES AND PROCEDURES
8.5. LOAN MONITORING PROCEDURES
9.0. PROGRAM LOAN UNDERWRITING AND APPROVAL
9.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN
9.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
9.3. ESCROW PROCEDURES
10.0. SUBORDINATE FINANCING
11.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES
11.1. DEFINITION OF EXCEPTION
11.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
12.0. DISPUTE RESOLUTION AND APPEALS PROCEDURE
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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 PER-UNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS
ATTACHMENT D: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT E: DISCLOSURE TO SELLER WITH VOLUNTARY, ARM'S-LENGTH
PURCHASE OFFER
ATTACHMENT F: STANDARD CONTRACT LANGUAGE, ALL CONTRACTS AND SUBCONTRACTS 127
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TOWN OF PARADISE
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 provide assistance to eligible homebuyers by increasing housing stock and assisting first-time homebuyers with a home purchase. The Program provides this assistance by paying for the construction of homes on empty parcels within the Town, and then selling the homes to pre-approved buyers at the lower of the appraised value or the cost to develop, and crediting back part of the proceeds from the sale to the buyer as a deferred payment “silent” second priority loan as “Gap” financing toward the purchase price and closing costs of the home that will be occupied by the homebuyers as their primary residence during the HOME affordability period. The Program will be administered by The Town of Paradise, (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 128
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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 will be part of the Town’s regular homebuyer workshops to help educate homebuyers about the homebuying process and future responsibilities.
B. The Program Operator will market the Program to 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. The Program Operator will take appropriate steps to ensure effective communication with disabled housing applicants, residents and members of the public. Housing constructed under the program will permit modifications to plans so that no otherwise qualified applicant is excluded due to disability.
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-first-served 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 potential homebuyer is given a program application, along with the following forms:
Program Summary Guidelines, List of Participating Lenders, Lead-Based Paint Disclosure and the EPA Booklet (Protect Your Family from Lead in Your Home).
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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 6 months, as stated in a written assistance denial letter.
After reviewing the Program application and all required documents, the Town issues the Buyer a pre-approval letter for participation in the Infill New Construction program.
C. Each applicant must participate in individual Homebuyer Counseling consistent with the requirements in Section 1.6 of these Program Guidelines.
1.3 THE HOME BUILD PROCESS
A. Formerly-developed lots in Paradise will be purchased by the Town for construction of single-family dwellings. Each contractor selected will be limited to no more than 4 units under one contract. Lots purchased for construction will have been vacant, with no habitable structure remaining, for a minimum of 90 days. Each property purchased will undergo the following:
a. Environmental Review
b. Title search
c. Property Survey
d. Septic Inspection
e. Weed Abatement
B. A Request for Proposals will be issued, complying with procurement standards found in 2 CFR sections 200.317-327 and conflict of interest provisions found in 24 CFR 92.356, requesting bids for constructing homes on each property. Priority will be given to Section 3 contractors. Each property will require bids for either a two-or three-bedroom home, depending on the parcel size and septic capacity. By having one contractor build multiple homes simultaneously, the Town expects to see cost savings possible with economies of scale. Each home will be built to required WUI standards and current state and local building codes. Building plans are such that, should a disabled household require accommodations, plans can be modified to meet the household’s needs, in compliance with Section 504 of the Rehabilitation Act of 1973.
Acceptable bids will be those that do not exceed the HOME maximum perunit subsidy limit. Selected contractors shall comply with all items noted in 130
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Section 2 of these guidelines. Selected contractor is not subject to DavisBacon Wage Requirements provided the contract does not exceed 12 housing units or 8 units on contiguous lots. Construction contracts executed will contain the standard language described in Attachment J. Selected contractors are required to comply with Section 3 hiring and reporting requirements.
C. Buyers who have been pre-approved for a first mortgage and for assistance from the Town of Paradise will be invited to choose from the “shovel-ready” project sites and chose a building plan. Financial feasibility will be determined, and the Buyer will enter a purchase contract to purchase a home upon completion of construction.
D. Due to the high availability of residential properties in Paradise, many eligible applicants already own vacant residential parcels in Paradise that may be eligible for new construction. Should a property meet all criteria required by other properties, (distance from other housing units, does not require hazard mitigation, and has clear title) the Town may elect to have pre-qualified Buyers sell the property to the Town for the duration of housing unit construction and sold back to the Buyer upon completion.
Consideration for the property will be deposited into an escrow account to be used as the Buyer’s down payment contribution for the purchase of the completed home. Should the Buyer not complete the purchase of the home at the end of construction, the funds held in escrow will be released to them, but they will no longer have ownership or purchase rights to the property, and the Town will sell the property on the open market to another qualified homebuyer.
E. Upon execution of a purchase contract, the contractor will be issued a Notice to Proceed to construct the house. Construction is expected to take no more than 6 months. The Town of Paradise will pay the contractor directly for development hard costs and related soft costs, as eligible under 24 CFR 92.206.
F. The Town of Paradise shall pay the contractor the contract price as provided in a contract for construction using available HOME Program Income or Recaptured Funds. The Town will make progress payments as the work proceeds, at the completion of pre-determined steps. Work will meet standards of quality established in the contract and be verified by a qualified Building Inspector. The Town may retain a maximum of 10% of the amount of any payment if work is substantially complete but not satisfactory. The contractor will furnish an unconditional waiver and release for each payment.
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G. When construction completion is imminent, the Buyer will have income, assets, and credit verified with third parties for final loan approval. The property will be appraised by the first lender, and close of escrow will be scheduled. Close of escrow will not occur until Certificate of Occupancy has been issued.
H. Should a Buyer fail to purchase the home upon completion of construction, the purchase contract will be canceled, and the home will be made available to purchase by any other qualified Buyer. If the property is not sold to an eligible homebuyer within 9 months of completion of construction, the Town will rent the home to an eligible tenant.
I. Sales proceeds will be deposited into the Town’s HOME reuse account as Recaptured Funds or the CDBG reuse account, respectively. This allows the Town to recoup most of the cost of construction in order to both assist the homebuyer directly with only the amount down payment assistance necessary and avoid exceeding the HUD HOME maximum per-unit subsidy limit in accordance with 24 CFR 92.250. The sales price of the property to the Buyer shall be the lesser of either the appraised market value or the actual cost to acquire and construct the housing unit.
Development Soft Costs: $ 45,000
Construction Costs: $240,000
Closing Costs: $ 10,000
Total Expenses: $295,000
Purchase Price (total cost): $295,000
Estimated down payment
assistance:
$100,000
Total returned to Recaptured Funds: $195,000
For HOME, the purchase price limits for this Program shall not exceed the HOME Homeownership Value Limit for Town’s County as updated by HCD.
Attachment C: HOME HOMEOWNERSHIP VALUE LIMIT *Town will update these limits annually as HCD provides new information.
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1.4. THE HOME PURCHASE PROCESS
A. Buyer, pre-approved by a primary lender and the Town, is selected from the waitlist to choose a property and execute a purchase contract. The Buyer agrees to contribute 2% towards the purchase of the home and maintain program eligibility during the course of construction.
B. The Town will verify all income and assets with third parties and determine the financing gap. See the following summary of the gap calculation below:
SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $4,500 PER MONTH
Purchase Price of Property $300,000
Less Primary loan amount $194,000
Less down payment of 2% $ 6,000
Equals “GAP” $100,000
Plus estimated allowable settlement charges 8,500
Equals Total Subsidy $ 108,500
DEBT SERVICE
FOR A FAMILY OF FOUR EARNING $4,500 PER MONTH
HOUSING PAYMENTS TOTAL OVERALL PAYMENTS
Principal & Interest Payment $1,179 $1,604 Housing
Insurance $ 125 $ 200 Other Debt Service
Taxes $ 300 $1,804 Total Debt Service
Total Housing Expense $1,604 (Overall debt service per month is 40% of $4,500) (PITI is 35% of $3,388)
OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 150
Credit Card Payment 50
Total Other Debt $ 200
A $1,604 per month loan payment equates to borrowing $195,000 at 6% for a 30-year term. 133
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C. The housing unit selection process will be conducted by the homebuyers of shovel-ready project sites and construction cost estimates. a. Homebuyer has no power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement;
b. Homebuyer’s offer is an estimate of the fair market value of the housing unit, to be finally determined by a state-licensed appraiser;
The housing unit will be subject to inspection. The housing unit must comply with state and local codes at the time of construction and local health and safety standards.
D. Buyer and Town execute a standard form purchase and sale agreement.
The purchase and sale agreement will be contingent on the household and housing unit meeting Program eligibility requirements and receiving Program loan approval, and Certificate of Occupancy of the subject property. The Town verifies applicant eligibility, housing unit and loan eligibility and amount of assistance to be provided consistent with these guidelines.
E. When primary lender requirements are met, Program funds are deposited into escrow, with required closing instructions and loan documents. When allowable by the primary lender, Town funds will be in the form of seller credit towards the purchase, evidenced with a Promissory Note and deferred second Deed of Trust.
F. 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 for full replacement cost of the housing unit. A policy of Title Insurance naming the Sponsor as insured is also required.
1.5. 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. 134
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B. Homebuyer must contribute a minimum down payment of two percent (2%) of the purchase price but may contribute more if desired. These funds can be gifted from a relative; however, institution grants do not count toward the homebuyer’s minimum contribution. If the household is participating in a self-help build, their hours worked can satisfy the 2% contribution.
C. Sponsor will provide a subsidy that is no greater than the applicable HOME maximum per-unit subsidy limit for the State of California and no more than the amount of the buyer’s primary mortgage plus their down payment contribution. 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 25% to 35% 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.
E. Proceeds from the sale will be deposited back into the Town’s HOME and/or CDBG reuse accounts, respectively, as Recaptured Funds.
1.6. 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 counselor information needed. 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 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 135
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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.
1.7. 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 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. 136
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1.8. 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 CONTRACTOR QUALIFICATIONS
2.1 Selected contractors will comply with Section 3 labor compliance and reporting, Federal debarment statutes, and be appropriately licensed for the work they bid.
2.2 Selected contractors will supply the Town with performance and payment bonds to ensure completion of the contract.
2.3 Selected contractors will be insured against liability in an amount not less than $1,000,000, maintain minimum state-required Worker’s Compensation insurance, and maintain unemployment, disability, and liability insurance, if required by law.
2.4 Selected contractors will comply with applicable labor standards/prevailing wage provisions, as applicable, and comply with Equal Opportunity Requirements.
2.5 Selected contractors will comply with VAWA requirements (24 CFR 92.359), Contract Work Hours and Safety Standards (29 CFR Part 5 and 29 CFR Part 1926), Copeland Anti-Kick Back Act regulations (29 CFR Part 3), and conflict of interest provisions in 24 CFR 92.505.
2.6 Selected contractors will certify compliance with the Byrd Amendment prohibiting lobbying, and 24 CFR 92.257 and 5.109 governing engagement in inherently religious activities.
2.7 Selected contractors will enter into a construction contract with the Town of Paradise that includes a written scope of work, a line-itemed bid, allowable timeframes for completion, dispute resolution procedures, and disbursement steps. The contract shall specify that work will be performed in accordance with federal, state, and local housing and building codes, regulations and statutes.
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3.0 APPLICANT QUALIFICATIONS
3.1. 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 don’t 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.
3.2. 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 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 defined in § 24 CFR section 5.609
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. 138
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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.)
See Attachment B: Asset Inclusions and Exclusions
3.3. 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:
“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.
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4.0. HOUSING UNIT ELIGIBILITY
4.1. 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 Town of Paradise.” B. Housing unit types eligible for the Homebuyer Program are new homes constructed as a part of this HOME Infill New Construction Program.
C. All housing units will be built to current California Building Code requirements and Wildland Urban Interface requirements as imposed by the Town of Paradise and will be inspected to ensure the unit 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. Before the close of escrow, the housing unit will have received a Certificate of Occupancy and Clearance to Record.
4.2. CONDITIONS
A. 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):
Amount of HOME Assistance Period of Affordability in Years Under $25,000 5 years
$25,000 to $50,000 10 years
Over $50,000 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.
B. 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 Infill New Construction homebuyer project requires completion of a HUD CEST form from the Environmental Review - HUD Exchange webpage, including use of its worksheets for related laws and authorities.
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4.3. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Eligible homes will be those that are newly constructed for purchase under this HOME Infill New Construction Program. 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 anti-displacement 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 lowincome housing, which is demolished or converted. The implementing regulations for Section 104(d) can be found in 24 CFR Part 42, subpart (C).
4.4. PROPER NOTIFICATION AND DISCLOSURES
A. Upon selection of a housing unit, the 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.
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B. All owners who wish to sell their property must receive an acquisition notice (Attachment F) prior to submission of the Program Operator’s original offer.
This notice will be included in the contract and must be signed by all owners on title.
5.0. 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.
6.0. 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 debtto-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. Adjusted gross income may be used when calculating borrower ratios (not for income eligibility) when a household has considerable income from other adults in the household who are not applicants to the primary loan or homebuyer assistance, to ensure the borrower(s) is/are not cost burdened.
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 142
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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.
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.
7.0. 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.
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 143
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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 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 unless the primary loan is underwritten by USDA for a longer term, in which case the Program’s loan term will match that of the primary.
The Program loan’s interest rate shall be 1% simple interest for the first 10 years only.
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.
8.0. 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.
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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.
8.1. 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.
8.2. RECEIVING LOAN PAYMENTS
A. Voluntary Program loan payments, and loan payoffs, shall be made to:
Town of Paradise
5555 Skyway
Paradise, CA 95969
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 Reuse 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.
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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8.3. 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, to a person who was not included in the household at the time of application approval, 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 was part of the household at the time of application approval and continues to meet occupancy requirements, or if the heir’s household meets each of the following requirements:
• does not exceed the current HOME income limits; and
• 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.
8.4. 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.
8.5. 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
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9.0. 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 back-up documentation of all income and assets.. During the course of escrow, the primary lender shall submit copies of the following to the Sponsor: ; 1) mortgage application with good faith estimates and primary loan mortgage disclosures; 2) full mortgage credit report; 3) current third-party income verifications and verifications of assets; 4) homeownership education certificate, if applicable; and 5) 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
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. The minimum credit score for program consideration is 620 with no items in collections, with an exception for medical debt.
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 e-mailed or faxed. Based on receipt and review of the documents, the Program Operator will estimate household income (using the most-recent HCD program’s guidance on income calculation and determination), and homebuyer certification (review of credit report and income taxes). Documentation of affordability shall then analyzed, and a subsidy amount will be determined by the Program Operator. 147
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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. 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 crosschecking all the primary lender information, the final Program loan amount approved will fall within the affordability parameters of the Program.
9.1. 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 loan funds for the homebuyer are provided to the escrow company.
9.2. 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 each Request For Notice of Default is also recorded with the County Clerk/Recorder.
9.3 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 148
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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).
10.0. 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.
11.0. 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 and approved by the Town Council.
11.1. 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.
11.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its agent may initiate consideration of an exception and prepare a 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.
12.0. 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 149
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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. 150
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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/subpartF/subject-group-ECFR174c6349abd095d/section-5.609, regarding income inclusions and exclusions.
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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/section5.603 regarding the definition of Net family assets, to which the regulations at section
5.609 refer.
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ATTACHMENT C
HOME HOMEOWNERSHIP VALUE LIMITS FOR BUTTE COUNTY*
(Limits effective 12/1/2025)
EXISTING
CONSTRUCTION
NEW
CONSTRUCTION
(less than 12 months
old)
$390,000 $429,000
[]
HOME MAXIMUM PER-UNIT SUBSIDY LIMITS FOR CALIFORNIA
(Limits effective 5/11/2026)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$187,658 $215,122 $261,595 $338,419 $371,477
HOME INCOME LIMITS FOR BUTTE COUNTY*
(Limits effective 6/1/2026)
Number of Persons in Household
1 2 3 4 5 6 7 8
80%
of AMI
$54,400 $62,200 $69,950 $77,700 $83,950 $90,150 $96,350 $102,600 *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: CDBG, HOME and NHTF/HHC Article I - Income, Value, Subsidy, and Rent Limits | California Department of Housing and Community Development.
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ATTACHMENT D
LOAN SERVICING POLICIES AND PROCEDURES
FOR TOWN OF PARADISE
The Town of Paradise, 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:
Town of Paradise
Address
City, State, Zip
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 Town of Paradise 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 154
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