Community Development Agency
www.santa-ana.org/cd
Item # 33
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
December 2, 2025
TOPIC: Adopt a Resolution for the 2024 Homeownership CalHome Program Award
AGENDA TITLE
Resolution to Accept a $4,893,250 Award in Grant Funding from the State of California Department of Housing and Community Development 2024 Homeownership CalHome Program and Appropriation Adjustment
RECOMMENDED ACTION
1. Adopt a Resolution authorizing the City of Santa Ana to accept a $4,893,250 award in grant funding from the State of California Department of Housing and Community Development (HCD) 2024 Homeownership CalHome Program.
RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING RECEIPT OF 2024
HOMEOWNERSHIP SUPER NOTICE OF FUNDING AVAILABILITY (HOSN)
CALHOME PROGRAM GRANT FUNDS FOR THE MY FIRST HOME
PROGRAM
2. Authorize the City Manager to execute an agreement with the State of California, in the form of HCD’s “Standard Agreement,” for receipt of the 2024 Homeownership CalHome Program grant funding in the amount of $4,893,250, and execute any other documents required by HCD to secure the grant (Agreement No. A-2025-XXX).
3. Approve an appropriation adjustment recognizing $4,893,250 in grant funding from the State of California into the CalHome Program revenue account and appropriate the same amount into the CalHome Program expenditure account to provide down payment assistance and homebuyer education in the City of Santa Ana (Requires five affirmative votes).
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The City of Santa Ana (City) offers a down payment assistance program called “My First Home,” which provides loans to first-time home buyers to aid in the purchase of a home in the City. Funds are made available on a first-come, first-served basis.
Adopt a Resolution for the 2024 Homeownership CalHome Program Award December 2, 2025
5 4
4 2
Over the last five years, the City has provided over $5.2 million in down payment assistance loans to 49 families to purchase a home in the City. This includes $2.9 million in local Inclusionary Housing funds, $1.6 million in federal Community Development Block Grant funds, and $720,000 in state CalHome Program funds. The City offers more down payment assistance per household than any other city in Orange County.
In December 2024, HCD issued a Homeownership Super Notice of Funding Availability (NOFA) of $143.1 million for the 2024 Homeownership CalHome Program. The 2024 Homeownership CalHome Program supports homeownership programs serving low income households. CalHome funds are granted to private non-profit organizations and local government agencies to promote affordable homeownership. Local public entities were eligible to apply for CalHome funds to operate programs within their jurisdictional boundaries.
The City applied for this funding in March of 2025, and on October 27, 2025, notification was received that the City was awarded $4,893,250 in 2024 Homeownership Super NOFA, CalHome, Round 2 funding (Exhibit 1). The award notice is a Conditional Award Commitment subject to the City’s approval of a resolution (Exhibit 2) and Standard Agreement.
To accept this award, the City must submit a resolution to HCD within sixty (60) calendar days of October 27, 2025. The resolution must constitute, to HCD’s reasonable satisfaction, an unconditional, duly adopted, and legally binding authorization of the City to accept the total amount of the Conditional Award funds, to fully participate in the relevant Department program, and to be legally bound by the requirements of the Department program. The resolution is required to execute a Standard Agreement with HCD and the State of California.
The City has previously received CalHome Program funds for down payment assistance. Repaid loans are appropriated into the CalHome Reuse account and are utilized for HCD authorized activities. In Fiscal Year 2023-24, $360,000 in CalHome Reuse funds were used to fund loans for three (3) low-income families. In Fiscal Year 2024-25, $360,000 in CalHome Reuse funds were used to fund loans for three (3) low- income families and all reuse funds were exhausted.
HCD program eligibility requirements include: 1) selected homebuyers earn 80% or below the Area Median Income, 2) selected homebuyers occupy the home as their principal place of residence, and 3) each selected homebuyer must complete a homebuyer education course.
With approval of the resolution (Exhibit 2) and subsequent execution of an HCD standard agreement, CalHome funds will be used to provide gap financing loans of no more than $120,000 per unit. Staff estimates that these new funds will assist a total of 37 new homeowners in the City. This is the largest grant for affordable homeownership opportunities that the City has received in the last decade and will create wealth- Adopt a Resolution for the 2024 Homeownership CalHome Program Award December 2, 2025
5 4
4 2
building opportunities for City residents and provide more affordable homeownership opportunities.
This is a pass-through of state funding to approximately 37 new homeowners in the city. 100 percent of funds shall be expended within 36 months of the date the Standard Agreement is executed by HCD. The funds will be paid on a reimbursement basis. This one-time grant award includes 10% for administration, equal to $444,000. Section 402.2 of the NOFA guidelines states “Administration costs shall not exceed 10% of the total of CalHome Mortgage Assistance disbursements.” Since $9,250 will be paid towards homebuyer education, staff have to exclude that amount from the 10% calculation below.
FISCAL IMPACT
Approval of the appropriation adjustment will recognize $4,893,250 in funds from the State of California, in CalHome Program – State Grant-Direct revenue account (no. 14318002-52025) and appropriate the same amount across expenditure accounts as outlined below.
Any remaining balances not expended by the end of the fiscal year will be presented to City Council for approval of carryovers to FY 2026-27.
Fiscal
Year
Accounting
Unit -
Account
Fund
Description
Accounting Unit,
Account Description
Amount
FY 25-26 14318763-
61XXX
CalHome Owner
Occupied
CalHome, Salaries and
Benefits $366,920
FY 25-26 14318763 –
62120
CalHome Owner
Occupied
CalHome, Training,
Transportation, Meeting $5,000
FY 25-26 14318763 –
62300
CalHome Owner
Occupied
CalHome, Contract
Services-Professional $9,250
FY 25-26 14318763 –
63001
CalHome Owner
Occupied
CalHome, Miscellaneous
Operating Expenses $2,500
FY 25-26 14318763 –
65100
CalHome Owner
Occupied
CalHome, Insurance
Charges $16,850
FY 25-26 14318763 –
66511
CalHome Owner
Occupied
CalHome, Computer
Software Subscription $52,730
FY 25-26 14318763 –
69152
CalHome Owner
Occupied
CalHome, Loans &
Grants $4,440,000
Total: $4,893,250
EXHIBIT(S)
1. Grant Award Letter
2. Resolution
Adopt a Resolution for the 2024 Homeownership CalHome Program Award December 2, 2025
5 4
4 2
Submitted By: Michael L. Garcia, Executive Director – Community Development Agency Approved By: Alvaro Nuñez, City Manager