18 (a) Any applicant may appeal the decision of the City Manager, or his or her designee, by filing such appeal with the City Clerk in writing within ten (10) days of the date of the City Manager’s decision.
(b) The City Clerk shall schedule a public hearing at next regularly scheduled City Council meeting in accordance with the calendar deadlines established by the City Clerk for placing an item on the City Council agenda. The City Clerk shall give at least five (5) calendar days written notice thereof by mail addressed to the applicant’s permanent address as reflected in the application.
(c) If the applicant fails to appear at the time and place set for hearing, the City Council will consider the matter resolved by the ruling of the City Manager, or his or her designee.
(d) If the applicant does appear, the applicant will have to show by clear and convincing evidence that the City Manager, or his or her designee, was incorrect in his or her ruling.
(e) The City Council shall have the power to concur with the ruling of the City Manager, or his or her designee, or reject the ruling and order the issuance of the permit. In either event, the decision of the City Council shall be the final administrative remedy available to the applicant.
5-17-13 Permits: Non-transferable.
Any permit issued pursuant to the provisions of this article shall be non-transferable and such shall be used only by the person to whom it has been issued. 5-17-14 Permits: Display.
(a) The permittee shall display his or her permit on his or her person at all times while engaged in any such business.
(b) The permittee shall also have in his or her possession written permission to be on and conduct business on such public or private property from the owner, or his or her authorized representative. The permittee shall, upon demand of any peace officer or fire inspector present such written permission.
5-17-15 Prohibited areas.
(a) Any permit issued pursuant to this article does not allow or authorize the permittee to operate on a public highway or road right of way nor does it allow the permittee to operate on public or private property without the prior written permission of the current owner, or his or her authorized representative.
19 5-17-16 Permit: Renewal.
Any permit issued pursuant to this Article may thereafter be renewed yearly by the applicant, if the permit has not been suspended or revoked, upon the applicant requesting same from the Chief of Police and paying in advance the renewal fee as established time to time by resolution of the City Council. 5-17-17 Registration requirements for those organizations exempted pursuant to Turlock Municipal Code Section 5-17- 03(b). (a) Any organization not required to obtain permits pursuant to Turlock Municipal Code Section 5-17-03(c) and engaged as itinerant vendors must nonetheless register their organization and participants with the City of Turlock Police Department prior to engaging in such activity.
(b) Registration pursuant to Turlock Municipal Code Section 5-17-17(a) must be made in writing at least five (5) days prior to the commencement of such activity and shall contain at least the following information:
(1) The name of the organization;
(2) The names of all itinerant vendors;
(3) The nature of the activity and the dates that same will be conducted; (4) Any other such information that the Chief of Police may require to insure the public safety, health and general welfare.
5-17-18 Violation: Penalty.
(a) It shall be unlawful for any person to violate any provision of this chapter or to fail to comply with any of the requirements of this article. Any person violating any of such provisions or failing to comply with any of such requirements of this chapter shall be guilty of a misdemeanor.
(b) Each person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of this article is committed, continued or permitted by such person and shall be punishable accordingly. (c) In addition to the penalties provided by this section, any condition caused or permitted to exist in violation of this chapter shall be deemed a public nuisance and may be summarily abated by the City, and shall be regarded as a new and separate offense.
20 (d) Any person convicted of a misdemeanor under the provisions of this chapter shall be punishable by a fine not to exceed One Thousand and no/100ths ($1,000.00) Dollars, or by imprisonment in the County Jail for a period not to exceed six (6) months, or by both such fine and imprisonment.
(e) Pursuant to California Government Code Section 38773.7, any person found in violation of the provisions of this chapter a second or subsequent time within a two-year period will be subject to treble damages, according to court order.
SECTION 3. VALIDITY: If any section, subsection, sentence, clause, word, or phrase of this ordinance is held to be unconstitutional or otherwise invalid for any reason, such decision shall not affect the validity of the remainder of this ordinance. The Turlock City Council hereby declares that they would have passed this ordinance, and each section, subsection, sentence, clause, word, or phrase thereof, irrespective of the fact that one or more section, subsection, sentence, clause, word, or phrase be declared invalid or unconstitutional.
SECTION 4. ENACTMENT: Prior to the expiration of fifteen (15) days from the passage and adoption thereof, this ordinance shall be published in a newspaper of general circulation printed and published in the County of Stanislaus, State of California, together with names of the members of the City Council voting for and against the same.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 8th day of July, 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
NOT PARTICIPATING:
ABSENT:
Signed and approved this 22nd day of July, 2025.
________________________
AMY BUBLAK, Mayor
ATTEST:
_____________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,
State of California
1 Compare old v. new TMC ch. 5-17
This document shows the revisions to Chapter 5-17 to remove the regulation of sidewalk/street vendors that are moved to the proposed Resolution. Chapter 5-17 will continue to regulate Itinerant Vendors.
Chapter 5-17
ITINERANT VENDORS
Sections:
5-17-01 Findings.
5-17-02 Definitions.
5-17-03 Permits: Required: Exemptions: Exceptions.
5-17-04 Street vendors. Repealed.
5-17-05 Permits: Applications.
5-17-06 Permits: Fees.
5-17-07 Permits: Background police investigation: Temporary permits. 5-17-08 Permits: Issuance.
5-17-09 Permits: Conditions to promote quality assurance. 5-17-10 Permits: Denial: Suspension: Revocation.
5-17-11 Permits: Appeal of the Chief of Police’s denial, suspension or revocation. 5-17-12 Permits: Appeal of the City Manager’s decision. 5-17-13 Permits: Non-transferable.
5-17-14 Permits: Display.
5-17-15 Prohibited areas.
5-17-16 Permit: Renewal.
5-17-17 Registration requirements for those organizations exempted pursuant to Turlock Municipal Code Section 5-17-03(b).
2 Compare old v. new TMC ch. 5-17
5-17-18 Violation: Penalty.
5-17-01 Findings.
The City Council of the City of Turlock hereby finds and declares that public necessity, health and safety, and for the general welfare, immediately requires that any person operating an itinerant or street vendor business or service as an owner or operator or as an employee of an owner or operator obtain a permit from the City of Turlock and operate pursuant to the laws of the State of California, the County of Stanislaus and the City of Turlock.
5-17-02 Definitions.
For the purposes of this chapter, unless otherwise stated in this chapter, the following words and phrases are defined as follows:
(a) “Established place of business” shall mean and include a fixed place, location or building within the boundaries of the City of Turlock, zoned for residential uses with a valid City home occupation permit, or commercial, office, or industrial uses, owned, or rented or leased on a month-to-month or term for years basis, by a person using such place, location or building as his or her permanent place of business. (b) “Itinerant vendor” shall mean and include:
(1) any person who has no established place of business within the boundaries of the City of Turlock and who is engaged in transient business traveling from place to place for the purpose of selling any goods, wares, merchandise or services or for the purpose of the taking of orders for the sale of any goods, wares, merchandise or services to be delivered or performed at some future time and date; and
(2) any person who has obtained the proper City of Turlock permits and public/private permission to engage in a transient business in one location or set up a temporary location as provided by the Turlock Municipal Code for the purpose of selling any goods, wares, merchandise or services or for the purpose of the taking of orders for the sale of any goods, wares, merchandise or services to be delivered or performed at some future time and date. (c) “Street vendor” shall mean and include any person who shall stand or park any vehicle, wagon, or pushcart from which goods, wares, merchandise, fruits, vegetables, or food stuffs are sold, displayed, or offered for sale or any lunch wagon or eating car or vehicle on any city street.
(c) Repealed.
3 Compare old v. new TMC ch. 5-17
(d) “)“Person” shall mean and include natural persons, sole proprietorships, firms, associations, partnerships, or corporations.
(e) “)“Non-profit organization” shall mean and include any organization, foundation, corporation or association recognized by the State of California as a non-profit organization.
(f) “Temporary location” shall mean and include a location that may not be used in excess of seventy-two (72) hours in any consecutive thirty (30) day period. 5-17-03 Permits: Required: Exemptions: Exceptions.
(a) No person shall engage in any business whether individually or as the employee or agent of another person, firm, company, corporation, association, organization, or partnership as an itinerant vendor without first complying with all applicable requirements of Title 9,9, Chapter 2, of the Turlock Municipal Code (Zoning Regulations) and having obtained a permit from the Chief of Police. (b) Exemptions: The following are expressly exempt from the provisions of this article:
(1) Qualified participants in a farmer’s market registered with the sponsoring organization approved from time to time by the City Council of the City of Turlock; (2) Merchants having an established place of business in the City of Turlock, or to their employees or agents;
(3) Wholesalers or their representatives, employees or agents, calling upon retail business.
(c) Non-profit organizations as recognized by the State of California are not required to obtain an itinerant vendor or street vendor permits but shall register their itinerant vendor activity with the City of Turlock Police Department pursuant to Turlock Municipal Code Section 5-17-17.5-17-17.
5-17-04 Street vendorsVendors. Repealed.
(a) Except as otherwise provided in this section, no street vendor shall operate within this City:
(1) at any permitted location for a period of time exceeding thirty (30) minutes and regardless of the length of time that vending occurred at any permitted location, shall not vend again for a period of twenty-four (24) hours within 1000 feet of such location;
4 Compare old v. new TMC ch. 5-17
(2) within 1000 feet of any park, playground, public recreation facility, or school property;
(3) within 50 feet of any intersection;
(4) in such a manner as to constitute a violation of Vehicle Code Section 22400 and 22507;
(5) on South First Street between Main Street and A Street; (6) in a City parking lot.
(b) Where a person or entity owns more than one vehicle, wagon, or pushcart subject to the provisions of this section, said person or entity shall not permit an additional vehicle, wagon, or pushcart owned by said person or entity to vend at any permitted location for a period of twenty-four (24) hours within 1000 feet of such a location when another vehicle, wagon, or pushcart owned by the same person or entity has already vended within that twenty-four (24) hour period at that permitted location. (c) The provisions of this subsection shall not apply to persons delivering such articles upon order of or by agreement with a customer from a store or other fixed place of business or distribution.
(d) It shall be unlawful for any person to own, lease, drive, operate, or cause or permit to be driven, or operate any food vending truck in the City of Turlock unless such person has obtained a permit pursuant to Section 5-17-05 of this Code, and submitted a motor vehicle liability insurance policy, covering each food vending truck, issued by a solvent corporation holding a certificate of authority to do insurance business in the State of California.
(e) Each vehicle operating under the provisions of this chapter and pursuant to the permit issued under Section 5-17-05 of this Code shall be equipped with a trash receptacle of a size sufficient to accommodate all trash and refuse generated by its vending activities.
(f) Each vendor shall pick up and deposit in the trash receptacle on the vehicle any paper, cups, wrappers, litter, or other refuse of any kind which were a part of the goods or merchandise supplied from the vehicle and which have been left or abandoned within twenty-five (25') feet of such vehicle or any public property other than in a trash receptacle provided for such purposes. No vendor or operator shall dispose of any trash or refuse in any such public or private trash receptacle other than a trash receptacle owned, operated, or otherwise provided by and under the control of such vendor or operator.
(g) Vendor shall not dispose of liquid or semi-solid or solid waste on City owned property and shall dispose of waste in compliance with the provisions of Turlock Municipal Code Section 6-4-118.
5 Compare old v. new TMC ch. 5-17
5-17-05 Permits: Applications.
Any person desiring to obtain an itinerant vendor or street vendor permit or desiring to obtain a permit for his or her employee or agent shall file a written application with the Chief of Police on the application form provided by the Police Department. Such application shall set forth the following information:
(a) The applicant’s name and address(es), both residential and business; (b) If the applicant is a corporation, the name of the corporation exactly as it appears in the articles of incorporation, as well as the names and addresses of all officers, directors and stock holders holding five (5%) percent or more of the stock in the corporation;
(c) If the applicant is a partnership or unincorporated association, the names and addresses of all partners, including limited partners, or principals. Additionally, if the applicant is a partnership, then it must designate a managing partner and that person must complete the application form;
(d) The applicant’s date of birth, weight, height, color of eyes and hair; (e) The name under which the itinerant vendor operates; (f) The name of each City, County and State, including the specific addresses therein, in which the applicant has been engaged in or has conducted itinerant vendor activity within the immediately preceding five (5) years;
(g) A statement of all felonies and misdemeanors for which the applicant has been convicted, including nolo contendere, within the five (5) years immediately preceding the date of the application;
(h) The applicant’s valid drivers license number;
(i) The applicant’s valid Social Security number;
(j) The type of permit requested (i.e. Owner, Operator or Employee). (k) Any and all other information requested by the Chief of Police to facilitate the processing of the application and to ensure that the public’s health, safety and general welfare is protected:
(l) A signed statement that the information contained in the application as submitted by the applicant is true to the best of the applicant’s knowledge under the penalty of perjury under the laws of the State of California.
5-17-06 Permits: Fees.
6 Compare old v. new TMC ch. 5-17
Any person desiring to obtain a permit shall pay to the City of Turlock, and submit along with the application referenced in Turlock Municipal Code Section 5-17-04, above,itinerant vendor application the fees established from time to time by resolution of the City Council of the City of Turlock for itinerant vendors. 5-17-07 Permits: Background police investigation: Temporary permits. (a) The Chief of Police shall conduct and complete an investigation of the truthfulness of the facts set forth in the itinerant vendors application filed pursuant to Turlock Municipal Code Section 5-17-04, abovethis Chapter, and the moral fitness, reputation, character, integrity and competency of the applicant.
(b) The applicant shall report to the Turlock Police Station to be fingerprinted, the cost of which shall be borne by the applicant. A complete fingerprint background investigation through the California Department of Justice can take an estimated six (6) to sixteen (16) weeks to complete.
(c) The Chief of Police, within fifteen (15) days after the application is received, shall conduct a preliminary background check of references and law enforcement agency records within Stanislaus County and counties contiguous to Stanislaus County pursuant to a written release from applicant.
(d) If the Chief of Police finds nothing in the preliminary background investigation which would indicate that the applicant’s moral, fitness, reputation, character, integrity or competency would pose a threat to the public safety, health or welfare, the Chief of Police may issue a ninety (90) day temporary permit while the complete fingerprint background investigation is being completed by the California Department of Justice pursuant to Turlock Municipal Code Section 5-17-06(b), above.5-17-06(b), above. To qualify for a temporary permit, the itinerant vendor (1) shall file a permit application pursuant to Turlock Municipal Code Section 5-17-04;this Chapter; (2) shall reside in Stanislaus County or a county contiguous to Stanislaus County; and (3) shall be subject to a background check of references and law enforcement agency records within Stanislaus County and counties contiguous to Stanislaus County pursuant to a written release from applicant. If the complete fingerprint background investigation is not completed by the California Department of Justice on the expiration date of the ninety (90) day temporary permit, the Chief of Police may extend the expiration date by not more than sixty (60) days.
5-17-08 Permits: Issuance.
The Chief of Police shall grant and issue the permit for a period not to exceed one year and subject to the conditions established below and any other conditions that the Chief of Police establishes if the Chief of Police finds nothing in the preliminary background investigation or the complete fingerprint background investigation through the California Department of Justice which would indicate that the applicant’s moral, fitness,
7 Compare old v. new TMC ch. 5-17
reputation, character, integrity or competency is not good or would pose a threat to the public safety, health or welfare.
5-17-09 Permits: Conditions to promote quality assurance.
The following conditions shall apply to each and every permit issued:
(a) The applicant must be eighteen (18) years or older or if the applicant is between the age of fourteen (14) and seventeen (17), inclusive, submit proof of a valid work permit issued by the applicant’s school;
(b) The applicant must not have been convicted within the five (5) years immediately preceding application for a permit for a crime involving honesty or veracity, violence, dangerous or deadly weapons, or not more than once during the same five (5) year period of the use or possession of narcotics or other such illicit substance; (c) The applicant must operate in accordance with the provisions and requirements of the laws of the United States of America, the State of California, the County of Stanislaus, and the City of Turlock;
(d) The applicant must operate in a courteous, honest and forthright manner which includes, but is not limited to, the following:
(1) Display his or her permit pursuant to Turlock Municipal Code Section 5-17- 135-17-13 and upon request present it for review by the person the permittee is soliciting;
(2) Refrain from soliciting those persons that have indicated that they do not want to be solicited, either orally or by the posting of a sign; (3) Do not threaten or coerce any person.
(e) The applicant must procure and present to the City of Turlock a bond in the penal sum of One Thousand and no/100ths ($1,000.00) Dollars;
(f) If the applicant proposes to operate on private property, he or she must first obtain zoning clearance from the City of Turlock Community Development Department, Planning Division, and shall comply and operate pursuant to all applicable zoning laws, regulations, and special conditions as administered by the City of Turlock Community Development Department by authority of the Turlock Municipal Code; (g) Any and all other conditions established by the Chief of Police or the City Manager, or his or her designee, on any one individual permit to ensure the public health, safety and general welfare.
5-17-10 Permits: Denial: Suspension: Revocation.
8 Compare old v. new TMC ch. 5-17
(a) Denial. The Chief of Police may deny the permit if it appears that:
(1) the applicant has been convicted, including a plea of nolo contendere, of a felony or misdemeanor involving moral turpitude under any State or Federal law; or
(2) there is any cause which, in the opinion of the Chief of Police, jeopardizes the public health, safety or general welfare.
(b) Suspension and Revocation. The Chief of Police is authorized to temporarily suspend or permanently revoke the permit of any person permitted under this chapter for any of the reasons that follow after five (5) days written notice to the permittee specifying the grounds for the proposed suspension or revocation and requiring the permittee to appear at a certain time and place to show cause why such permit should not be suspended or revoked:
(1) Non-compliance with any of the conditions established by Turlock Municipal Code Section 5-17-09.5-17-09.
(2) If it appears that the permittee has engaged in any unlawful business, act or acts.
(3) When any matter comes to the attention of the Chief of Police that the information provided in the permittee’s application was false. (4) When complaint(s) have been lodged against the permittee that same has threatened or jeopardizes the public health, safety or general welfare. 5-17-11 Permits: Appeal of the Chief of Police’s denial, suspension or revocation.
(a) Any permittee or applicant may appeal the decision of the Chief of Police to deny, suspend or revoke a permit to the City Manager, or his or her designee by submitting such appeal in writing within ten (10) days of the date of the denial, suspension or revocation.
(b) The City Manager, or his or her designee, shall set a date and time for a hearing not later than ten (10) days from the receipt of the written appeal on the appeal and give at least five (5) calendar days written notice thereof by mail addressed to the applicant’s permanent address as reflected in the application.
(c)
At the hearing, which may be continued from time to time, the City Manager may take oral and documentary evidence from any interested person regarding the moral fitness, reputation, character, integrity and competency of the applicant or any other factors which were used by the Chief of Police in his or her reasonable judgment that resulted in the
9 Compare old v. new TMC ch. 5-17
denial, suspension or revocation of a permit. Any applicant or permittee or applicant who fails to appear at the hearing after notice was given, without obtaining a continuance from the City Manager, or his or her designee, may be deemed to have waived any right to introduce evidence or object to the final decision of the City Manager, or his or her designee.
(c)(d) If the applicant fails to appear at the time and place set for hearing, the City Manager will consider the matter resolved by the ruling of the Chief of Police. (d)(e) The City Manager, or his or her designee, shall make a ruling at the end of such hearing or within five (5) days thereafter to either:
(1) Uphold the decision of the Chief of Police in the denial, suspension or revocation of the permit;
(2) Overrule the decision of the Chief of Police and grant or reinstate the permit; (3) Amend the suspension length of the permit for any such period as may be deemed necessary and proper;.
(4) Grant or reinstate the permit with additional conditions established thereto. 5-17-12 Permits: Appeal of the City Manager’s decision. (a) Any applicant may appeal the decision of the City Manager, or his or her designee, by filing such appeal with the City Clerk in writing within ten (10) days of the date of the City Manager’s decision.
(b) The City Clerk shall schedule a public hearing at next regularly scheduled City Council meeting in accordance with the calendar deadlines established by the City Clerk for placing an item on the City Council agenda. The City Clerk shall give at least five (5) calendar days written notice thereof by mail addressed to the applicant’s permanent address as reflected in the application.
(c) If the applicant fails to appear at the time and place set for hearing, the City Council will consider the matter resolved by the ruling of the City Manager, or his or her designee. (d) If the applicant does appear, the applicant will have to show by clear and convincing evidence that the City Manager, or his or her designee, was incorrect in his or her ruling. (e) The City Council shall have the power to concur with the ruling of the City Manager, or his or her designee, or reject the ruling and order the issuance of the permit. In either event, the decision of the City Council shall be the final administrative remedy available to the applicant.
5-17-13 Permits: Non-transferable.
10 Compare old v. new TMC ch. 5-17
Any permit issued pursuant to the provisions of this article shall be non-transferable and such shall be used only by the person to whom it has been issued. 5-17-14 Permits: Display.
(a) The permittee shall display his or her permit on his or her person at all times while engaged in any such business.
(b) The permittee shall also have in his or her possession written permission to be on and conduct business on such public or private property from the owner, or his or her authorized representative. The permittee shall, upon demand of any peace officer or fire inspector present such written permission.
5-17-15 Prohibited areas.
(a) Any permit issued pursuant to this article does not allow or authorize the permittee to operate on a public highway or road right of way nor does it allow the permittee to operate on public or private property without the prior written permission of the current owner, or his or her authorized representative.
(b) No area may be used for a use where such activity is prohibited by the Turlock Municipal Code.
5-17-16 Permit: Renewal.
Any permit issued pursuant to this Article may thereafter be renewed yearly by the applicant, if the permit has not been suspended or revoked, upon the applicant requesting same from the Chief of Police and paying in advance the renewal fee as established time to time by resolution of the City Council.
5-17-17 Registration requirements for those organizations exempted pursuant to Turlock Municipal Code Section 5-17- 03(b). (a) Any organization not required to obtain permits pursuant to Turlock Municipal Code Section 5-17-03(5-17-03(c) and engaged as itinerant vendors must nonetheless register their organization and participants with the City of Turlock Police Department prior to engaging in such activity.
(b) Registration pursuant to Turlock Municipal Code Section 5-17-17(5-17-17(a) must be made in writing at least five (5) days prior to the commencement of such activity and shall contain at least the following information:
(1) The name of the organization;
11 Compare old v. new TMC ch. 5-17
(2) The names of all itinerant vendors;
(3) The nature of the activity and the dates that same will be conducted; (4) Any other such information that the Chief of Police may require to insure the public safety, health and general welfare.
5-17-18 Violation: Penalty.
(a) It shall be unlawful for any person to violate any provision of this chapter or to fail to comply with any of the requirements of this article. Any person violating any of such provisions or failing to comply with any of such requirements of this chapter shall be guilty of a misdemeanor.
(b) Each person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of this article is committed, continued or permitted by such person and shall be punishable accordingly. (c) In addition to the penalties provided by this section, any condition caused or permitted to exist in violation of this chapter shall be deemed a public nuisance and may be summarily abated by the City, and shall be regarded as a new and separate offense. (d) Any person convicted of a misdemeanor under the provisions of this chapter shall be punishable by a fine not to exceed One Thousand and no/100ths ($1,000.00) Dollars, or by imprisonment in the County Jail for a period not to exceed six (6) months, or by both such fine and imprisonment.
(e) Pursuant to California Government Code Section 38773.7, any person found in violation of the provisions of this chapter a second or subsequent time within a two-year period will be subject to treble damages, according to court order.
BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK
WHEREAS, Senate Bill 946 (SB 946) added Chapter 6.2 (commencing with Section 51036) to Part 1 of Division of Title 5 of the California Government Code to regulate Sidewalk Vendors throughout the state, including within the City of Turlock (the City); and WHEREAS, SB 946 established requirements for local regulations of Sidewalk Vendors and required that such regulations to be adopted by a resolution or ordinance; and WHEREAS, the City seeks to adopt by resolution to establish operational requirements for Sidewalk Vendors in the City to comply with SB 946 and protect the health, safety, and welfare of the community; and
WHEREAS, the City finds that the regulations set forth herein are directly related to objective health, safety, and welfare concerns, including but not limited to the health, safety and welfare of vendors, their prospective customers, pedestrians, those protected by the Americans With Disabilities Act, those operating motor vehicles at intersections and in rights- of-way adjacent to sidewalks, and the public at large.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TURLOCK, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1: Findings.
1. The purpose of this resolution is to establish operational requirements for Sidewalk Vendors that comply with Government Code sections 51036 through 51039 while also protecting the health, safety, and welfare of the public.
2. Regulation of sidewalk vending will benefit the City as a whole as it will lead to orderly commerce while encouraging entrepreneurship and providing economic opportunity for people to support themselves and their families.
3. The act of vending on public sidewalks, pedestrian paths or pedestrian walkways creates the potential for safety hazards, such as, but not limited to, inhibiting the ability of disabled individuals and other pedestrians to follow a safe path of travel; interfering with the }
}
}
}
}
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}
IN THE MATTER OF ADOPTING RULES RESOLUTION NO. 2025-
AND REGULATIONS REGARDING
SIDEWALK VENDORS WITHIN THE CITY
OF TURLOCK, PURSUANT TO
GOVERNMENT CODE CHAPTER 6.2
(COMMENCING WITH SECTION 51036)
OF PART 1 OF DIVISION 1 OF TITLE 5.
Resolution No. 2025-
performance of police, firefighter and emergency medical personnel services; encouraging pedestrians to cross mid-block or stand in roadways to purchase food and merchandise; and creating obstacles and contributing to congestion for pedestrian, vehicle, and bicycle traffic.
4. Regulations of Sidewalk Vendors are needed to accommodate Sidewalk Vendors’ equipment while safeguarding pedestrian movement on public sidewalks, parkways, pedestrian paths or walkways, and other public rights-of-way.
5. Regulations of Sidewalk Vendors engaged in the sale of food and food products are needed to protect the public health and safety by ensuring that Sidewalk Vendors prepare food safely and follow all health and food safety regulations.
6. Regulations of Sidewalk Vendors are needed to prevent hazardous or unsanitary conditions and to ensure that trash and debris are removed by Sidewalk Vendors and do not become a pollutant.
7. The City Council adopts this Resolution under the authority provided in Senate Bill 946 and Government Code Sections 51036 through 51039 and finds that the time, place, and manner regulations and requirements provided herein ate directly related to the City’s purpose of protecting the health, safety and welfare of its residents, businesses and visitors, including ensuring compliance with the American with Disabilities Act of 1990 and other disability standards; ensuring the public’s use and enjoyment of natural resources and recreational opportunities; and preventing an undue concentration of commercial activity that unreasonably interferes with the scenic and natural character of City parks.
8. Prohibiting Sidewalk Vendors from operating where placement impedes pedestrian access to or the use of an abutting property, including but not limited to, areas located within 100 feet of residences or within 50 feet of the entrance or exit from any place of business with an operational kitchen is necessary to protect the welfare of residents of the City by maintaining access and use of said premises while also ensuring food safety.
9. Prohibiting Sidewalk Vendors from operating within 10 feet of another Sidewalk Vendor will reduce the likelihood of an obstruction of the sidewalks and will help eliminate the need for any pedestrian to enter the vehicular right-of-way, protecting the public’s health, safety, and welfare.
10.Prohibiting Sidewalk Vendors from operating within a certain distance from the edge of the curb face is necessary to protect the health, safety and welfare of the vendor, customer, and motorists, as it reduces exposure to pedestrian versus vehicle contact, and ensures better visibility for drivers of vehicles entering or exiting driveways.
11.Prohibiting Sidewalk Vendors from operating within the immediate vicinity of the Turlock Certified Farmer's Market is necessary to protect the welfare of residents of the City by maintaining the integrity of the certified farmer's market.
12.Prohibiting Sidewalk Vendors from operating in the immediate vicinity of an area
Resolution No. 2025-
designated for a temporary special permit issued by the City is necessary to protect the welfare of residents of the City by maintaining the integrity of the event associated with the temporary special permit.
Section 2: The following regulations are adopted effective immediately:
Section 2.1: Purpose
The purpose of this Resolution is to ensure that the City is in compliance with Government Code sections 51036 through 51039. The reasonable time, place, and manner regulations set forth in this Resolution are necessary to protect the public health, safety and welfare by, among other things, ensuring unobstructed pedestrian travel on City sidewalks and minimizing potential conflicts between motor vehicles and pedestrians and vendors in the public right-of-way. Furthermore, procedures are necessary to prevent unsanitary conditions, and to ensure trash and debris in the areas Sidewalk Vendors are operating are removed by said vendors.
Section 2.2: Conditions and Restrictions Imposed on Permit; Health and Safety Justification
1. Sidewalk Vendors shall adhere to all operating conditions and requirements set forth in this Chapter, and all restrictions, limitations, and operating requirements set forth in this Chapter shall constitute conditions upon any Sidewalk Vending Permit issued pursuant to this Chapter.
2. The conditions, restrictions and operating requirements set forth in this Chapter are intended to protect the health and safety of vendors, their patrons, and the general public for reasons including but not limited to:
a. Reducing exposure to pedestrian versus vehicle contact; b. Ensuring better visibility of drivers entering or exiting driveways; c. Protecting access to public right-of-way by disabled persons to comply with the Americans with Disabilities Act;
d. Ensuring safe pedestrian pathways in areas commonly utilized by pedestrians; e. Preventing the appearance of “marketplace” vending which is more likely to generate crowding on public sidewalks that would impede pedestrians and disabled use of sidewalks;
f. Reducing the chance pedestrians will enter vehicular rights-of-way or block the entrance or exit of a business;
g. Reducing the danger that school children will enter into traffic and be injured or killed trying to reach a vendor;
h. Reducing unnecessary or unanticipated slowing of vehicles approaching onramps,
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immediately adjacent to curb and sidewalk, or existing freeway off-ramps where drivers are merging into oncoming traffic, all of which are likely to cause accidents; i. Reducing the possibility that drivers will be distracted in their line of site by a vendor in the way of oncoming traffic;
j. Causing visual distractions to the driving public;
k. Cause excessive noise that disturbs the peace;
l. Eliminating litter, refuse, and food waste from the public right of ways; and m. Reducing the likelihood of contamination deposited into the City’s storm drain system.
Section 2.3: Definitions
“Certified Farmer's Market" means a location operated in accordance with Chapter 10.5 (commencing with Section 47000) of Division 17 of the Food and Agricultural Code and any regulations adopted pursuant to that chapter.
“Food" means any type of edible substance or beverage intended primarily for consumption by human beings.
“Immediate vicinity" means within five hundred (500) feet. “Median" means roadway medians and parkway islands.
“Merchandise" means small and easily carried or worn items that are not food or drinks, including but not limited to, souvenirs, toys, articles of clothing, flowers, etc. “Public right- of-way” means the area dedicated to public use for street or pedestrian purposes, including privately owned and maintained roads within the city that are generally held open to the public for purposes of vehicular and pedestrian traffic and includes alleys, driveways, highways, medians, parkways, planter strips, roads, sidewalks, and streets. “Roaming Sidewalk Vendor" means a Sidewalk Vendor who moves from place to place with stops to complete a transaction or transactions.
“Sidewalk" means that portion of the public right-of-way provided for the primary use of pedestrians along or adjacent to the street, including a public pathway provided for the primary use of pedestrians.
“Sidewalk Vendor" means a person who sells food, drinks or merchandise from a pushcart, stand, display, pedal- driven cart, wagon, showcase, rack, or other nonmotorized conveyance, or from one's person, upon a sidewalk or other pedestrian path. "Sidewalk Vendor" includes "Roaming Sidewalk Vendor" and "Stationary Sidewalk Vendor."
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“Stationary Sidewalk Vendor" means a Sidewalk Vendor who vends from a fixed location. “Temporary special permit" means a permit issued by the City for the temporary use of, or encroachment on, the sidewalk or other public area, including, but not limited to, an encroachment permit, special event permit, or temporary event permit, for purposes including, but not limited to, filming, parades, athletic events, public assemblies, carnivals, festivals, and outdoor concerts. “Vend, vends, vended or vending" means to sell, offer for sale, expose or display for sale, solicit offers to purchase, or to barter food or merchandise, or to require someone to negotiate, establish, or pay a fee before providing food or merchandise, even if characterized as a donation.
Section 2.4: Permit Application
1. No person shall engage in, conduct, or carry on the business of vending on a sidewalk without a permit issued under the provisions of this article.
2. Every person, prior to engaging in, conducting, or carrying on the business of vending on a sidewalk, shall file an application for a permit with the Turlock Police Department, accompanied by a nonrefundable processing fee in an amount established by resolution of the City Council. The application shall be in a form prescribed by the Turlock Police Department and shall contain, at a minimum, the following:
a. The legal name, current mailing address and telephone number of the applicant; b. If the applicant is an agent of an individual, company, partnership, corporation, or other entity, the name and business address of the principal; c. A copy of a California’s driver’s license or identification number, an individual taxpayer identification number, or a social security number. The number collected shall not be available to the public for inspection, is confidential, and shall not be disclosed except as required to administer the permit or comply with a state law or state or federal court order;
d. A description of the food and/or merchandise for vending; e. A description, map, or drawing of the areas in which the Sidewalk Vendor proposes to operate;
f. The dimensions of the vending cart;
g. The hours per day and the days per week during which the Sidewalk Vendor proposes to operate, and whether the Sidewalk Vendor intends to operate as a stationary Sidewalk Vendor or a roaming Sidewalk Vendor; h. A business license pursuant to Turlock Municipal Code Section 3-1.
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i. A current valid California seller’s permit number pursuant to Section 6067 of the California Revenue and Taxation Code;
j. Proof of a policy or policies of comprehensive general liability insurance with minimum limits of one million dollars ($1,000,000) per occurrence, combined single limit coverage and two million dollars ($2,000,000) in the aggregate against any injury, death, loss or damage as a result of wrongful or negligent acts or omissions by the permittee, with an endorsement naming the city as an additional insured. In addition, the permittee is required to carry workers’ compensation and automobile coverage sufficient to meet requirements of the State of California; k. If a vendor of food, the Sidewalk Vendor must show proof of a California Food Handler Card and a Stanislaus County itinerant vendor permit; l. An agreement by the applicant to indemnify and hold harmless the City, its officers and employees, for any damage or injury caused to the City as a result of the sidewalk vending conduct or activity;
m. Certification by the applicant, under penalty of perjury, that the information contained in the application is true to his or her knowledge and belief; and n. Any other reasonable information regarding the time, place, and manner of the proposed sidewalk vending activities.
3. Applications for permits shall be filed a minimum of thirty (30) days prior to the date requested for issuance of the permit. Renewal permit applications shall be filed a minimum of thirty (30) days prior to the expiration of any existing permit.
Section 2.5: Criteria for Issuance or Denial of Permit:
1. Turlock Police Department shall approve the issuance of a permit unless it is determined that:
a. The applicant has been convicted of a felony or misdemeanor involving moral turpitude, and has not subsequently demonstrated rehabilitate characteristics; b. The applicant has made a material misrepresentation in the application; or c. The applicant has failed to provide a complete application, after having been notified of the requirement to produce supplemental information or documents; Section 2.6: Permit Non-Transferable
A Sidewalk Vending Permit issued pursuant to this Chapter shall not be transferable to any other entity or person. Any change in ownership, sidewalk operation, or vending activity of an issued Sidewalk Vending Permit requires the filing of a new permit application under this Chapter.
Section 2.7: Permit Expiration:
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A permit issued pursuant to this Chapter shall be effective for a period of one year from the date of issuance.
Section 2.8: Regulations
1. The City shall restrict the hours of operation of Sidewalk Vendors to comply with the restricted hours of the businesses wherein the Sidewalk Vendor is operating.
2. Sidewalk Vendors shall operate in compliance with all applicable federal, state, county, and City laws, ordinances, and regulations.
3. Sidewalk Vendors shall only conduct operations at locations approved by the Turlock Police Department pursuant to this Resolution.
4. No Sidewalk Vendor is permitted to operate within 500 feet of a public or private school during the hours of 7:00 a.m. to 6:00 p.m. Monday through Friday.
5. Sidewalk Vendors are prohibited from operating in a city park if the city has entered into exclusive agreements for the sale of food or merchandise by one or more concessionaires for that city park.
6. Roaming sidewalk vending within any residential areas of the City is prohibited between the hours of 7:00 p.m. and 7:00 a.m. of the subsequent day.
7. A Sidewalk Vendor shall maintain a clean and trash-free 10-foot radius around his or her pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance at all times when it is located on public property. A Sidewalk Vendor shall immediately clean up any food, grease, or other fluid or item related to sidewalk vending activities which fall onto the sidewalk or other public property. When departing a location used for vending, the Sidewalk Vendor shall remove all trash and debris from the location.
No trash or refuse generated by sidewalk vending activities shall be disposed of in public or private trash receptacles; Sidewalk Vendors must take the trash generated by their activities with them and dispose of it appropriately.
8. For public safety reasons, including pedestrian, vehicular, public and vendor safety, a Sidewalk Vendor shall not operate within the number of feet designated below from the nearest portion of the corresponding location:
a. Within 500 feet from any freeway on-ramp or off-ramp. b. Within 10 feet of another Sidewalk Vendor.
c. Within 100 feet of a residence.
d. Within 50 feet of the entrance or exit from any place of business that has an operational kitchen. If a business containing an operational kitchen is closed,
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this restriction shall not apply. This restriction shall only apply to businesses located on the same side of the street the Sidewalk Vendor is operating on to ensure food safety.
e. Sidewalk Vendors are prohibited from operating within 15 feet of fire hydrants, bus bench, transit shelter, crosswalk, or driveway.
9. For public safety reasons, including pedestrian, public, and vendor safety, a Sidewalk Vendor shall not operate in such a manner that the vendor, the vendor's cart, the vendor's display, the vendor's goods, or any combination thereof:
a. impedes public use of the sidewalk or right-of-way as required by the Americans with Disabilities Act; or
b. impedes access to or the use of abutting property, including, but not limited to, residences and places of business; or
c. impedes emergency access for the Police, Fire Department, or medical personnel to any abutting property; or
d. is located within 18 inches from the edge of the curb face.
10.In the event of a traffic accident, medical emergency, gas leak, natural disaster, fire, onsite construction or related work on a capital improvement project, or an emergency situation, the City may temporarily require Sidewalk Vendors to relocate to another location if doing so is necessary to protect the public' s health and safety.
11.Sidewalk Vendors shall not vend to customers in vehicles.
12.The sale of alcohol, marijuana, adult-oriented material, tobacco products, electronic cigarettes or products that contain nicotine, or any product used to smoke/vape nicotine or marijuana, is prohibited.
13.Vendors shall be present at all times while any food, drink or merchandise is on display on a sidewalk. Unattended vending is prohibited.
14.Vendors shall comply with all applicable noise ordinances, including but not limited to Turlock Municipal Code section 5-28.
15.During the Turlock Certified Farmer' s Market, Sidewalk Vendors not associated with the Farmer' s Market shall not operate within the immediate vicinity.
16.During an event classified as a swap meet, Sidewalk Vendors not associated with the swap meet shall not operate within the immediate vicinity.
17.During an event that has been issued a Temporary Special Permit, Sidewalk Vendors not associated with the Temporary Special Permit shall not operate within the immediate
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vicinity.
18.Sidewalk Vendors who vend any food, beverage, or liquid products must implement the following best management practices:
a. Posses spill kits that are comprised of paper towels, cloth towels, or sand at all times while vending;
b. Remove all spill materials from the public right-of-way and sidewalks once the spilled material is absorbed off the ground;
c. Capture and prevent spills leaving the area and moving into the surrounding streets from entering the storm water conveyance system, including curbs, gutters, and storm drains;
d. Properly dispose of grease; and
e. Ensure that any water or rinse residue used for vending activities is not disposed in the curbs, gutters, streets, drains, or on any public property.
19.Sidewalk Vendors shall ensure that all customer queuing, waiting areas, or lines do not block, hinder, or interfere with the free flow of pedestrian or vehicular traffic along, over, or across public property, and otherwise comply at all times with the location-related restrictions set forth in this Chapter relative to sidewalk vending activities.
20.Stationary Sidewalk Vendors are prohibited from operating or establishing in any residential zone of the City. This does not apply to roaming Sidewalk Vendors.
21.Vending carts shall not be left unattended by the vendor or their staff.
22.Sidewalk Vendors shall not attach or use any water lines, electrical lines, or gas lines located on public property owned by the City, or belonging to any other entity or person.
Section 2.9: Inspection and Enforcement
Representatives of the Police Department, Fire Department, Code Enforcement, Planning Department, or Finance Department shall be permitted, at any time a Sidewalk Vendor is operating in the City, to inspect a Sidewalk Vendor's operation, its required permits, and its vended food and goods for compliance with local or state laws and regulations.
Section 2.10: Violations
1. In accordance with State Law, a person found in violation of this Resolution shall be subject to the following, and except as provided in subsection (f) of this Section 2.5, these provisions shall be the exclusive penalties applicable to violations of this Resolution:
a. Operating as a Sidewalk Vendor in violation of this chapter, other than the
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failure to possess a valid sidewalk vending permit:
i. A written warning for a first violation.
ii. An administrative fine not exceeding one hundred dollars ($100) for a second violation within one year of the first violation. iii. An administrative fine not exceeding two hundred dollars ($200) for a third violation within one year of the first violation. iv. An administrative fine not exceeding five hundred dollars ($500) for each additional violation within one year of the first violation. v. After the fourth violation the Sidewalk Vendor’s permit will be rescinded.
b. Operating as a Sidewalk Vendor without a valid permit issued by the Turlock Police Department:
i. An administrative fine not exceeding two hundred fifty dollars ($250) for a first violation.
ii. An administrative fine not exceeding five hundred dollars ($500) for a second violation within one year of the first violation. iii. An administrative fine not exceeding one thousand dollars ($1,000) for each additional violation within one year of the first violation.
c. Upon proof of a valid permit issued by the local authority, the administrative fines set forth in this paragraph shall be reduced to the administrative fines set forth in paragraph (1), respectively.
d. A Sidewalk Vendor may appeal an administrative fine pursuant to section 2- 11 of the Turlock Municipal Code.
e. A Sidewalk Vendor who has been issued an administrative fine pursuant to this Resolution may request a determination of his or her ability to pay the administrative fine pursuant to the provisions of Government Code section 51039(f). If the Sidewalk Vendor shows proof to the satisfaction of the hearing officer( if the request is made at the time of an administrative appeal hearing), or the City Manager or his or her designee (if the request is made at any other time), that he or she meets the criteria set forth in Government Code section 68632, subsections (a) or (b), the fine amount shall be reduced to 20 percent of the original fine amount.
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f. Violations of the Turlock Municipal Code not specifically subject to the limitations set forth in Section 51039 of the Government Code shall be subject to enforcement pursuant to the Turlock Municipal Code, as the same may be amended from time to time, in addition to any other applicable penalties or remedies prescribed by law at the time of the violation. g. All such fines collected under this Section shall be deposited into the General Fund.
Section 3: If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Resolution is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have adopted this Resolution and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional.
Section 4: This Resolution shall be reviewed one calendar year from its Effective Date.
Section 5: This Resolution shall be effective immediately upon its passage.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 8th day of July, 2025, by the following vote:
AYES:
NOES:
NOT PARTICIPATING:
ABSENT:
ATTEST:
___________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,
State of California
City Council Staff Report
July 8, 2025
From: Adrienne Werner, Development Services Director
Prepared by: Jennifer Figueroa, Housing Program Manager Agendized by: Susan E. Borrego, Interim City Manager
1. ACTION RECOMMENDED:
Resolution: Adopting the updated “First Time Homebuyer Secondary Financing Program” Policy and Procedure for the Housing Program Services Division.
2. DISCUSSION OF ISSUE:
The Housing Division must draft and update various policies and procedures for all housing programs to ensure compliance with the requirements of U.S. Department of Housing Urban Development (HUD) and California Department of Housing and Community Development (HCD) requirements.
While the Housing Division administers a First-Time Homebuyer Program, current housing prices and average wage levels in the City of Turlock have rendered the program ineffective in its existing form.
Staff have reviewed the existing policies and procedures and conducted financial scenarios to assess their viability. Following the presentation of proposed updates to the Loan Committee and receiving their input and recommendations, staff recommend the following policy revisions:
• Update interest rate from 3% simple interest for thirty years to 0% interest for the initial 15-years, followed by a 15-year period with a 2% simple interest rate. This is to incentivize the homebuyer to pay down the loan within the first 15 years. • Update maximum loan amount from 4% of the purchase price up to $50,000, to providing “gap” financing up to $100,000. Example:
GAP FINANCING SUBSIDY CALCULATION EXAMPLE
Purchase Price of Property $ 400,000
Less primary loan borrower can obtain $(325,000)
Less program required down payment $( 5,000)
Equals “Gap” needed to purchase property$ 70,000
Plus estimated closing costs $ 16,000
Total Subsidy/Loan $ 86,000
• Update front-end ratio to read a minimum of 35% instead of a maximum of 35%.
This will allow the applicant to go over the front-end as long as their back-end ratio does not exceed the new proposed percentage.
Agenda Staff Report
7/8/2025
• Update back-end ration from a maximum of 38% to a maximum of 46%. This allows more flexibility in purchasing power for the applicant. • Add Permanent Local Housing Allocation (PLHA) requirements as this is a new funding source that will be utilized for the first-time homebuyer. • Add verbiage in the HOME overview section explaining brief history of Consortium.
Also add language about property standards and updated affordability period per regulation.
• Various minor updates to spelling and grammar, add verbiage for clarification, and remove irrelevant language.
The recommended Policy and Procedure is included as Attachment 2, with all proposed updates shown in track changes for ease of review.
3. BASIS OF RECOMMENDATION:
The Division currently lacks a viable first-time homebuyer program. To establish one, it is essential to develop and update policies and procedures in line with U.S. Department of Housing and Urban Development (HUD) and California Department of Housing and Community Development (HCD) requirements to ensure compliance with applicable federal and state regulations.
4. FISCAL IMPACT / BUDGET AMENDMENT:
There is no fiscal impact.
5. STAFF RECOMMENDATION:
Recommend approval.
6. CITY MANAGER COMMENTS:
Recommend approval.
7. ENVIRONMENTAL DETERMINATION:
This action is not subject to the provisions of the California Environmental Quality Act (CEQA) in accordance with Section 15378(b)(5) of the CEQA guidelines. This action consists of “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment” and therefore is not considered a project.
8. ALTERNATIVES:
City Council could choose not to adopt the recommended updates to the Policies and Procedures for the Housing programs. This alternative is not recommended as the proposed updates are necessary to support efforts to make the First-Time Homebuyer program viable.
9. ATTACHMENTS:
1. FTHB Resolution
2. FTHB Policies and Procedures-Draft update May 2025
BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK
IN THE MATTER OF ADOPTINGTHE UPDATED }
“FIRST TIME HOMEBUYER SECONDARY } RESOLUTION NO. 2025-
FINANCING PROGRAM” POLICY AND }
PROCEDURE FOR THE HOUSING PROGRAM }
SERVICES DIVISION. }
}
WHEREAS, the City of Turlock receives various state and federal funds through the U. S. Department of Housing and Urban Development (HUD) and the California Department of Housing and Community Development (HCD); and WHEREAS, HUD and HCD require jurisdictions to have specific policies and procedures in order to receive funding; and
WHEREAS, the Housing Division administers a First-Time Homebuyer Program that is ineffective in its existing form; and
WHEREAS, the Housing Division reviewed existing policies and procedures and recommends the following policy revisions:
• Update interest rate from 3%simple interest for 30 years to 0% interest for the initial 15-years followed by a 15-year period with a 2% simple interest rate;
• Update maximum loan amount from 4% of the purchase price up to $50,000, to provide “gap” financing up to $100,000;
• Update front-end ration to read a minimum of 35% instead of a maximum of 35%;
• Update back-end ratio from a maximum of 38% to a maximum of 46%; • Add Permanent Local Housing Allocation (PLHA) as new funding source; • Add verbiage to HOME funding overview section describing history of Consortium funds and add language regarding property standards and updated affordability period per regulation;
• Various updates to spelling and grammar, added verbiage for clarification, and removing irrelevant language; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Turlock does hereby adopt a resolution adopting the updated “First Time Homebuyer Secondary Financing Program” policy and procedure for the Housing Program Services Division.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 10th day of June, 2025, by the following vote:
AYES:
NOES:
Resolution No. 2025-
NOT PARTICIPATING:
ABSENT:
ATTEST:
__________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,
State of California
First Time Homebuyer Secondary
Financing Program
Policies and Procedures Manual
City of Turlock
Housing Program Services
156 South Broadway, Suite 250, Turlock CA 95380
(209) 668-5610, Fax (209) 668-5120, TDD 1 (800) 735-2929 Website: www.cityofturlock.org
Approved by City Council on October 13, 2009 by resolution 2009-196 with amendments on November 24, 2009 by resolution 2009-223, September 11, 2012 by resolution 2012-159, and
January 11, 2014 by resolution 2014-009
These Policies and Procedures supersede any previously adopted Policies. These policies and procedures are subject to change in accordance with revisions made by the State of California and or Housing and Urban Development.
Table of Contents i
City of Turlock FTHB Program Policies and Procedures Manual Updated: 1-11-2014
Table of Contents
Page No.
Introduction..................................................................................................................... v
1. Overview
1-A. Purpose of Manual .......................................................................................... 1 1-B. Program Summary .......................................................................................... 1 1-C. General Definitions.......................................................................................... 1
2. CalHome Program Requirements
2-A. Overview ......................................................................................................... 6 2-B. Eligible Household .......................................................................................... 6 2-C. Eligible Property .............................................................................................. 7 2-D. Affordability Period ......................................................................................... 8 2-E. Loan Terms ..................................................................................................... 8 2-F. Subordinate Financing to CalHome Loan ....................................................... 10 2-G. CalHome Target areas.................................................................................... 10 2-H. Reuse Account ............................................................................................... 10 2-I. Matching.......................................................................................................... 11
3. Community Development Block Grant (CDBG) Program Requirements 3-A. Overview ......................................................................................................... 12 3-B. Eligible Household .......................................................................................... 12 3-C. Eligible Property .............................................................................................. 13 3-D. Affordability Period ......................................................................................... 13 3-E. Loan Terms ..................................................................................................... 13 3-F. Subordinate Financing to CDBG Loan............................................................ 15 3-G. CDBG Target areas ........................................................................................ 16 3-H. Program Income ............................................................................................. 16 3-I. Matching.......................................................................................................... 16
4. HOME Program Requirements
4-A. Overview ......................................................................................................... 17 4-B. Eligible Household .......................................................................................... 17 4-C. Eligible Property .............................................................................................. 18 4-D. Affordability Period ......................................................................................... 19 4-E. Loan Terms ..................................................................................................... 19 4-F. Subordinate Financing to HOME Loan ........................................................... 21 4-G. HOME Target areas ........................................................................................ 21 4-H. Program Income ............................................................................................. 21 4-I. Matching.......................................................................................................... 21
Table of Contents ii
City of Turlock FTHB Program Policies and Procedures Manual Updated: 1-11-2014
5. Neighborhood Stabilization Program (NSP) Requirements 5-A. Overview ......................................................................................................... 23 5-B. Eligible Household .......................................................................................... 23 5-C. Eligible Property .............................................................................................. 24 5-D. Affordability Period ......................................................................................... 25 5-E. Loan Terms ..................................................................................................... 25 5-F. Subordinate Financing to NSP Loan............................................................... 27 5-G. NSP Target areas .......................................................................................... 27 5-H. Program Income.............................................................................................. 27 5-I. Matching.......................................................................................................... 28
6. (Place holder for future funding source) Permanent Local Housing Allocation (PLHA) 6-A. Overview ......................................................................................................... 29 6-B. Eligible Household .......................................................................................... 29 6-C. Eligible Property .............................................................................................. 29 6-D. Affordability Period ......................................................................................... 29 6-E. Loan Terms ..................................................................................................... 29 6-F. Subordinate Financing .................................................................................... 29 6-G. Target areas.................................................................................................... 29 6-H. Program Income ............................................................................................. 29 6-I. Matching.......................................................................................................... 29
7. First Time Homebuyer Mortgage Underwriting Requirements (for all Funding Sources) 7-A. Overview ......................................................................................................... 30 7-B. Verification of Previous Ownership Status ...................................................... 30 7-C. Verification of Borrower Income ...................................................................... 31 7-D. Credit............................................................................................................... 33 7-E. Purchase Price................................................................................................ 33 7-F. Maximum Sales/Price Value Limits................................................................. 33 7-G. Maximum Loan Amount .................................................................................. 34 7-H. Loan Documentation ....................................................................................... 34 7-I. Gift Funds........................................................................................................ 34
8. Application and Delivery Process (for all Funding Sources) 8-A. Overview ......................................................................................................... 35 8-B. FTHB Mortgage Application Process .............................................................. 35 8-C. Application Handling Priority ........................................................................... 37 8-D. Property Standards ......................................................................................... 37 8-E. Lead Based Paint (LBP).................................................................................. 38 8-F. Environmental Review ................................................................................... 40 8-G. Homebuyer Education Requirement .............................................................. 40 8-H City Mortgage Assistance Limit....................................................................... 40 8-I. Transfer of FTHB Mortgage ............................................................................ 40 8-J. Transfer of FTHB Application to Substitute Lender......................................... 40
Table of Contents iii
City of Turlock FTHB Program Policies and Procedures Manual Updated: 1-11-2014
8-K. Pre-approval Letter from City .......................................................................... 41 8-L. Changing Properties during the FTHB Second Application Process .............. 41 8-M. Resubmittal of FTHB Second Application Returned or Rejected.................... 41 8-N. Changes Prior to Closing ................................................................................ 41 8-O. Conflict of Interest ........................................................................................... 42
9. First Time Homebuyer Mortgage Loan Servicing by City (for all Funding Sources) 9-A. Overview ......................................................................................................... 43 9-B. Payment of Property Taxes and Insurance..................................................... 43 9-C. Owner-Occupancy .......................................................................................... 43 9-D. Required Noticing and Restrictions on Any Changes of Title or Occupancy .. 43 9-E. Subordination .................................................................................................. 44 9-F. Demand/Pay-Off ............................................................................................. 45 9-G. Request for Notice of Default .......................................................................... 45 9-H. Foreclosure by Senior Lien Holder.................................................................. 45 9-I. Recapture Provision ....................................................................................... 46 9-J. Foreclosure by City ......................................................................................... 47 9-K. Use of Third Party Agent................................................................................. 48 9-L. Loan-To-Value Limit ....................................................................................... 48 9-M. Borrower Contribution .................................................................................... 48 9-N. First Mortgage Underwriting Requirements ................................................... 48 9-O. Appraisal ........................................................................................................ 49 9-P. Cash Out of Escrow ....................................................................................... 50 9-Q. Title Insurance ................................................................................................ 50 9-R. Hazard Insurance ........................................................................................... 50
10. Federal Regulatory Provisions (for all Funding Sources) 10-A. Conflict of Interest ........................................................................................... 51 10-B. Fair Housing and Non-Discrimination ............................................................. 51 10-C. Relocation of Displaced Tenants .................................................................... 51
11. Exhibits
A. 24 CFR Part 5 Annual Income Inclusions and Exclusions B. Maximum Loan Amount
C. Income Limits
D. Homebuyer Education Curriculum
Section 1 - Overview iv
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
Introduction
This Manual sets forth policies and procedures for the City of Turlock’s First Time Home Buyer Secondary Financing (FTHB) Program. The FTHB Program is designed to seek new and creative ways to make home ownership a reality for income eligible households. The FTHB Program is a partnership between the City of Turlock, the State and Federal Governments, and local lending institutions to help make home ownership a reality and expand the availability of affordable housing for income eligible families in Turlock.
Most income eligible households do not qualify for a mortgage sufficiently large enough to purchase a house. The City of Turlock's FTHB Program provides funds to help make up the difference between the value of the primary loan, for which an income eligible Applicant qualifies, and the purchase price of the house. Essentially, the funds are used to boost the Applicant's down payment and are recorded as a silent second mortgage. The funds are not to exceed a set maximum loan amount by either a single or multiple city funding sources. FTHB Program funds help make home ownership a reality for income eligible households.
Funds available for this program may come from various local, state, and federal sources including but not limited to: Home Investment Partnership Program (HOME), Rental Rehabilitation Program (RRP), Community Development Block Grant (CDBG), and CalHome, and Permanent Local Housing Allocation (PLHA). The City will seek out additional funding sources to further affordable housing activities. The FTHB Program is designed to provide home ownership opportunities to income eligible buyers within the City of Turlock.
The City will comply with all city, state, and federal regulations and guidelines. In the event that the City assisted applicant combines two or more City funding sources, the homebuyer and the property shall meet the strictest underwriting criteria and guidelines of each program/funding source.
Use of funds is subject to change and shall be in accordance with the requirements of the State of California Department of Housing and Community Development Division and or the Housing and Urban Development and other regulations governing the funding for these programs, and any amendments or policy revisions thereto which shall become effective during the term of these Policies and procedures.
FTHB Program Mailing Address: City of Turlock
Housing Program Services
156 South Broadway, Suite 250140
Turlock, CA 95380
Telephone: (209) 668-5610
Fax: (209) 668-5120
TDD: (800) 735-2929 (Speech and hearing impaired only)
City of Turlock website: www.cityofturlock.org
Section 1 - Overview 1
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
1. Overview
1-A. Purpose of Manual
The purpose of the Policies and Procedures is to describe the First Time Homebuyer (FTHB) Program and set forth the roles of the City of Turlock, and the program applicants. These Policies and Procedures contain the regulations pertaining to specific funding sources and the Program’s general requirements and processing procedures.
The City is continually searching for new funding sources to further affordable housing activities. The intent of the FTHB Program is to be able to provide multiple layers of secondary mortgage financing to close the gap between eligible Borrowers’ financial resources and the cost of housing in the City of Turlock. The ultimate goal of the FTHB Program is to provide eligible Applicants with an affordable housing opportunity that would not otherwise be available.
1-B. Program Summary
The City of Turlock has established the FTHB Program to assist low- and moderate- income first time homebuyers1 with the purchase of a home. The home buying process can be overwhelming, especially to the inexperienced first- time homebuyer. The City’s FTHB Program staff will assist the Applicant to insure a successful and timely completion of the home purchase process.
To maximize the effectiveness of the FTHB Program as a vehicle for enhancing affordability, Borrowers pay no current principal or interest on the City’s mortgage during the deferment period. A mortgage in which payment of principal and interest is deferred is also known as a “silent second” mortgage.
Depending on the funding source(s), principal and interest are due and payable upon a variety of conditions or circumstances, the most common one being the sale or transfer of the home.
1-C. General Definitions
As used in the Policies and Procedures and all program documents, unless the context requires otherwise, the following words and terms have the meanings set forth below:
Affordable: In reference to housing costs, means that the financial obligation can be paid by the person or household, along with all other financial responsibilities of that person or household, without endangering the financial stability of the household.
Affordability Period: The minimum period of time the property isproperties are required to be occupied by a Borrower as his/her principal place of residence under the regulations pertaining to the funding source(s) used.
1 NSP funding does not require the applicant to be a first- time home buyer. andNSP and PLHA isare the only funding sources to allow buyer to be up to moderate income.
Section 1 - Overview 2
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
Applicant: Any person who applies for a FTHB loan under the Program.
Assisted unit: A unit purchased with loan(s) funded under this Program.
Borrower: A buyer who has or will receive financing under this Program for the purchase of an eligible property.
Capital
Improvements:
Expenditures for improvements to land or improvements and remodeling of existing buildings which increase the value, and extend the useful life of the property.
The identification of capital improvements shall be as set forth in IRS Publications 530 “Tax Information for First Time
Homeowners” and 551 “Basis of Assets”, included herein by reference.
Certification: A written statement of fact filed in connection with this Program and subject to penalties of perjury.
City: The City of Turlock, California.
Current Sale Price: 1. In the event of a first sale or transfer after the date of a loan issued under this Program, the current sale price shall be defined as the amount received by Borrower as the sales price of the property (less capital improvements) plus
amounts received but paid out to third parties for any closing costs and commissions paid by Borrower.
2. In the event of a default and subsequent foreclosure and acquisition of the property by a creditor, the current sale price shall be defined as the amount paid for the property upon the creditor’s saleacquisition of the property.
3. In the event of Borrower’s cash-out refinance of the property, the current sales price shall be defined as the market value as determined by an appraisal acceptable to City.
4. In the event of the first note and deed of trust becoming payable, the current sales price shall be defined as the market value of the property on the maturity date of the first note and deed, as determined by an appraisal acceptable to City., on the maturity date of the first note and deed.
5. In the event the property ceases to become Borrower’s principal place of residence, the current sales price shall be defined as the market value of the property on the date City determines the Borrower does not occupy the property as his or her principal place of residence, as determined by an appraisal acceptable to City., on the date City determines
Section 1 - Overview 3
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
that Borrower does not occupy the property as his or her principal place of residence.
Department: The State of California Department of Housing and Community Development.
Eligible Household: A household that is a first- time homebuyer (with the exception of the NPS program) and who meets applicable criteria specific to the funding source used.
First Mortgage: 1. A mortgage which is in first lien position, taking priority over all other liens and proceeds of which are used to finance the purchase or refinance the purchase price of an eligible property which meets the requirements set forth in this Manual.
2. An extension of credit for which a Deed of Trust is recorded and the proceeds of which are used to finance the purchase of an eligible property which meets the requirements set forth in this Manual.
First Time
Homebuyer:
A purchaser of a residential propertyunit who neither has, nor has had, a present ownership in a principal residence at any time during the three-year period prior to the date on which a mortgage pursuant to this Program is executed, except as otherwise allowed by the specific funding source(s) utilized.
Gap Financing/Funding: The difference between the amountvalue of the primary loan, for which an income eligible Applicant qualifies, and the purchase price of the house.
Gross Income: The anticipated income of a person or householdfamily for the 12- month period following the date of determination of income.
FTHB Second
Mortgage:
An extension of credit for which a Deed of Trust is recorded and is subordinate to the First MortgageDeed of Trust and possibly other sources of funding. A monthly pPayments of both principal and interest may beis deferred and payment in full plus interest as defined herein is due in accordance with the regulations pertaining to the funding source(s) used and loan documents.
First Time
Homebuyer
pre-approval:
A commitment to provide a FTHB Second Mortgage issued by the City of Turlock pursuant to the rules and regulations included in this Manual.
HUD: The United States Department of Housing and Urban
Development.
Section 1 - Overview 4
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
Income: To determine a Borrower’s eligibility for program assistance, income is determined using definitions specific to the particular funding source(s) utilized.
Lender: 1. A bank or trust company, mortgage banker, mortgage broker, federal or state chartered savings and loan
association, state or federal governmental agency or credit union whose principal business is to originate, process, close and service loans for the purchase of property.
2. Nationwide institutions whose primary purpose is to develop housing and provide first mortgage financing to low- and moderate- income purchasers of the developed housing.
3. The provider of primary mortgage financing for the purchase of an eligible property assisted with secondary financing under this Program.
Manufactured
Housing Unit:
A home manufactured offsite and transported to a lot, and a mobile home as defined by Section 18007 of the California Health and Safety Code.
Maturity Date: The date upon which a mortgage loan comes due and payable in full in accordance with the regulations pertaining to the funding source(s) used and applicable loan documents.
Moderate Income
Household:
Persons and families who are not lower income households and whose gross incomes do not exceed 120% of the area median income adjusted for household size in accordance with
adjustment factors adopted by HUD in establishing income limits for lower income families.
a. The maximum gross income limits for moderate income
households is the same as that for “persons and families of moderate income” and “persons and families of low or
moderate income”.
b. “Persons and families of low or moderate income” includes very low, lower, and moderate income households.
Middle Income: Persons and families whose gross income ranges from 81% to 120% of the area median income adjusted for household size in accordance with adjustment factors adopted by HUD in
establishing income limits for lower income families.
Mortgage: A deed of trust used to secure a lien on real property or, in the case of some manufactured housing, another security interest acceptable to the City. and the State of California Department of Housing and Community Development.
Section 1 - Overview 5
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
Mortgage
Assistance:
Permanent financing used towards homebuyer costs, up to the maximum limit stated in the regulations pertaining to the funding source(s) used.
Ownership Interest: Any of the following interests in residential real property:
• Fee simple estate
• Joint tenancy
• Tenancy in common
Ownership does not include a remainder interest, a lease with or without an option to purchase or any interest acquired on the execution of the purchase contract.
Principal Residence: A property occupied by the Borrower as the Borrower’s principal place of abode for a minimum of ten months out of each 12- month period.continuously all year.
Related Person: As defined under the Internal Revenue Code and applicable regulations: siblings, spouses, ancestors and lineal descendants or any other related persons.
Remaining
Spouse/Partner:
A now single individual who, while married or during cohabitancy, owned a home with his or her spouse/partner or resided in a home owned by the spouse/partner and has no ownership interest in any other residence other than the residence financed at provided by this program.
Second Mortgage: A mortgage that is junior or subordinate to a first mortgage.
Owner-Occupied
Residence:
A housing unit intended and used for occupancy by one
household which is the owner of the property.
Silent Second: A second mortgage in which there are no payments of principal and interest are deferred.required of either principal or interest on the mortgage until such payments are required in accordance with the regulations pertaining to the funding source(s) used.
Target Areas: Specific census tracts or designated areas in which specific modifications to the financing requirements apply.
Section 2 – CalHome Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
6 2. CalHome Program Requirements
2-A. Overview
The State of California Department of Housing and Community Development CalHome Program2 is one of several funding sources providing assistance to eligible Borrowers under this Program. These funds may be used for the acquisition and acquisition/rehabilitation of a home. The following applies to CalHome loans made under this Program. 2-B. Eligible Household
1. To be eligible to receive CalHome funds, an individual household shall:
a. Be a low- income household (income equal to or less than 80% of area median income as adjusted for household size) when considering the gross income of all household membersresidents 18 years old or older. The following household members are not counted to determine family size for income limits purposes: foster children, unborn children and children being pursued for legal custody or adoption who are not currently living with the household. A child who is subject to as sharedcustody agreement in which the child resides with the household at least 50% of the time, can be counted.
1) Gross income is as defined in the California Code of Regulations (CCR), Title 25, Section 6914 and is: “The anticipated income of a person or family for the twelve-month period following the date of determination of income.” 2) Income from assets is recognized as part of annual income under 24 CFR Part
5. City shall determine income from assets in accordance with 24 CFR 5. b. Be a first- time homebuyer and occupy the property as a principal place of residence.
A first time homebuyer is defined as a purchaser of a unit who neither has, nor has had, a present ownership in a principal residence at any time during the three-year period prior to the date on which a mortgage pursuant to this Program is executed, except as otherwise allowed by the CalHOME regulations as set forth below.specific funding source(s) utilized.
2. The following individual or individuals may not be excluded from consideration as a firsttime homebuyer under this section:
a. 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 2 Authorized by and pursuant to Chapter 6 of Part 2 of Division 31 of Health and Safety Code, commencing with Section 50650 (“California Statutes”) and regulations found in Title 25 of the California Code of Regulations, Division 1, Chapter 7, Subchapter 9 commencing with Section 7715 (“CalHome Regulations”), all as amended and in effect from time to time. CalHome funds are administered by the State Department of Housing and Community Development.
Section 2 – CalHome Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
7 employment and worked primarily without remuneration to care for his or her home and family;
b. 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 c. An individual or individuals who owns or owned, as a principal place of residence during the three-year period before the purchase of a home with CalHome assistance, a dwelling unit whose structure is:
1) Not permanently affixed to a permanent foundation in accordance with state or local regulations; or
2) 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.
3. For purposes of qualifying Borrower for a first mortgage, credit criteria shall be:
a. No late payments 1 year from date of applying.
b. No outstanding judgments or liens.
c. Outstanding collections may be paid out of closing not to be included as part of required down payment or from City funds.
d. Bankruptcy discharge must have been a minimum of two years prior to the date of purchase from date of discharge with no additional collections. e. Foreclosure must have been a minimum of four years prior to the date of purchase.from date of sale.
2-C. Eligible Property
1. Property purchased with CalHome funds must be located in:
a. Census tracts will be determined by grant. If no limitations, property must be located within the City limits excluding county pockets.
2. Property type must be:
a. Single-family housing; or
b. Condominium unit; or
c. A town home unit.
d. Multi-family units.
Section 2 – CalHome Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
8 3. Eligible property does not have any occupancy characteristics.
4. Property must meet basic housing quality standards, unless funds will be used for both the acquisition and rehabilitation.
2-D. Affordability Period
1. CalHome regulations do not currently require an Affordability Period. 2-E. Loan Terms
1. Security:
a. CalHome loans shall be secured by the property.
b. The lien securing repayment of the CalHome loan shall be subject only to liens, encumbrances and other matters of record reviewed and approved by the City.
2. Deferment:
a. Principal and interest payments shall be deferred for 30 years. the term of the CalHome loan.
3. Repayment:
a. The CalHome loan principal and interest shall be repayable upon:
1) Sale, transfer, rental, or lease of the property.
2) Borrower’s failure to occupy the property as Borrower’s principal place of residence (Borrower must certify occupancy annually).
3) The CalHome loan maturity date.
i. If it is determined by the Housing Program Services Division staff that repayment of the loan at maturity will cause a hardship to the Borrower, the FTHB Loan Committee may, at its option, elect to:
(1) Approve a one-time additional deferral period of up to 30 years in length at 0% additional interest, or;
(2) Convert the debt (principal and accrued interest) to a 15 year amortized loan at 0% additional interest.
4) The maturity date, or full repayment, of any debt secured by a lien on the Property that is senior to the CalHome deed of trust.
Section 2 – CalHome Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
9 5) Upon default of the CalHome promissory note, deed of trust or other recorded documents of record pertaining to the property.
6) Borrower’s cash-out refinance of any superior mortgages. 7) The City will provide deferred payment loans; the City may accept voluntary payments on the loan.The Borrower may repay the loan balance at any time with no pre-payment penalty. Loan payments will be credited to the principal first and then to interest. The borrower may repay the loan balance at any time with no pre-payment penalty.
4. Assumability:
a. CalHome loans are not assumable.
5. Transfer of Interest Exceptions:
a. The following transfers of interest shall not require repayment of the CalHome loan:
1) Transfer to a surviving joint tenant by devise, descent or operation of the law on the death of a joint tenant.
2) A transfer, in which the transferee is a person who occupies or will occupy the property, which is:
i. A transfer in which the spouse becomes an owner of the property. ii. A transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement by which the spouse becomes an owner of the property.
3) A transfer into an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.
6. Loan Term:
a. The CalHome loan term shall be 30 years, except upon the occurrence of any condition requiring repayment as noted above.
b. When United States Department of Agriculture, Rural Housing Service (USDA-RHS) 502 mortgage loans are in first lien position, the CalHome loan term shall be the term of the 502 mortgage (30 to 38 years).
7. Prepayment:
a. A Borrower may prepay the CalHome loan, in part or whole, at any time without penalty.
8. Interest:
Section 2 – CalHome Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
10 a. The loan shall be at zero (0%) percent interest for the initial 15 years followed by a 15-year period with 2% simple interest.The loan shall be at three (3%) percent simple interest for thirty (30) years and;
b. There are no payments due on the loan during the life of the ownership of the property by the Borrower and;
c. The total amount of the silent second loan plus any accrued interest becomes due and payable at the time of sale, refinance, transfer of ownership, rental, is no longer occupied by the primary borrower or thirty (30) years whichever comes first. d. The CalHome down payment assistance cannot be used for first position loans.
9. Restrictions on Sale:
a. In any transaction in which the CalHome loan is the only public assistancesecondary financing, the Borrower cannot be restricted from selling the home at its fair market value at any time.
b. Subsequent buyers, unless assisted with a CalHome loan under this Program, do not need to meet the Eligible Household requirements set forth above. c. Resale restrictions required by other secondary financing sources used in conjunction with a CalHome loan shall prevail.
2-F. Subordinate Financing to CalHome Loan
1. Fees and/or charges for subordinate loan financing shall be consistent with reasonable loan origination fees for first mortgage financing as determined by the City based on industry standards.
2. Balloon payments due before the maturity date of the CalHome loan are not permitted.
3. All subordinate financing shall defer principal and interest payments for the term of the CalHome loan.
2-G. CalHome Target areas
1. Census tracts will be determined by grant. If no census tract requirements, property must be located within the City limits excluding county pockets. 2-H. Re-Use Account
The City of Turlock has adopted this plan to govern the use of monies received as repayments of loan principal and/or loan interest resulting from activities funded under the State of California, CalHome Program. The City has formulated this document to comply with Article 2, Section 7724-Reuse Account requirements of the CalHome Program, Title 25 California Code of Regulations, Division 1, Chapter 7, Sub Chapter 9, commending with Section 7715.
Commented [JF1]: Incentive for homebuyer to pay down
principal balance during the first 15-year period.
Section 2 – CalHome Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
11 1. All repayments of CalHome loan principal and interest shall be received by City and deposited into a separate reuse account maintained by City’s Finance Department.
2. The reuse account shall be interest bearing into which all earned interest shall be deposited.
3. All funds deposited into the reuse account shall be the property of the City and are to be used for CalHome eligible activities.
4. A line item for reuse of CalHome funds will be inserted into City’s fiscal year budget allocating and approving use of funds for CalHome eligible activities.
5. All reuse funds shall be expended in accordance with the CalHome Regulations and the Standard and Monitoring Agreements between the City and the Department.
6. City shall allow the Department full access to the reuse account records for the purpose of determining City’s compliance with CalHome regulations.
7. Target area restrictions are not applicable to reuse funds.
8. Maximum loan amounts for loans from reuse funds shall be the greater of the loan limits of the NOFA under which the original CalHOME award was made, or the maximum loan amount in the most recent CalHOME NOFA.Loan maximum subsidy limits will convert to Department program guidelines.
9. All remaining funds from a rehabilitation loan will be placed into the reuse account. (Only applies when CalHome funds are used for the acquisition and rehabilitation loan) 2-I. Matching
No Matching requirements apply.
2-J/ Maximum Loan Amount
The maximum loan amount for a CalHOME first-time homebuyer, based on the current NOFA is 40% of the purchase price up to $100,000.
Section 3 – CDBG Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
12 3. CDBG Program Requirements
3-A. Overview
The Federal Community Development Block Grant (CDBG) Program3 is one of several funding sources providing assistance to eligible Borrowers under this Program. The following applies to CDBG loans made under this Program. 3-B. Eligible Household
1. To be eligible to receive CDBG funds, an individual household shall:
a. Be a low/moderate income household (income equal to or less than 80% of area median income as adjusted for household size) when considering the gross annual income of all household members 18 years old or older. Annual income is as defined in the Code of Federal Regulations, Title 24 Part 5. The following household members are not counted to determine family size for income limits purposes: foster children, unborn children and children being pursued for legal custody or adoption who are not currently living with the household. A child who is subject to as sharedcustody agreement in which the child resides with the household at least 50% of the time, can be counted.
1) City shall determine annual gross income in accordance with the Code of Federal Regulations (CFR), Title 24, Part 5, Section 5.609(b) attached hereto as Exhibit “A”.
2) Income from assets is recognized as part of annual income under 24 CFR Part
5. City shall determine income from assets in accordance with 24 CFR 5. b. Include as Borrowers all persons who will be or are on title to the property. Cosigners and co-mortgagors who do not intend to occupy the property are prohibited. c. Be a first- time homebuyer and occupy the property as a principal place of residence.
A first time homebuyer is defined as a purchaser of a unit who neither has, nor has had, a present ownership in a principal residence at any time during the three-year period prior to the date on which a mortgage pursuant to this Program is executed, except as otherwise provided belowallowed by the specific funding source(s) utilized.
2. The following individual or individuals may not be excluded from consideration as a first time homebuyer under this section:
a. A single parent or remaining spouse/partner who, while married or during cohabitancy, owned a home with his or her spouse or resided in a home owned by the spouse/partner, and has no ownership interest in a residence other than provided for in this Program. A single parent is an individual who is unmarried or legally 3 Authorized under Title I of the Housing and Community Development Act of 1974, as amended. The regulations implementing the CDBG Program are found at 24 CFR Part 570. CDBG funds are administered by the United State Department of Housing and Urban Development (HUD).
Section 3 – CDBG Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
13 separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant.
3. For purposes of qualifying Borrower for a first mortgage, credit worthiness criteria shall be:
a. No late payments during the 12 months prior to1 year from date of applying. b. No outstanding judgments or liens.
c. Outstanding collections may be paid out of closing not to be included as part of required down payment or from City funds.
d. Bankruptcy discharge must have been a minimum of two years prior to applyingfrom date of discharge with no additional collections.
e. Foreclosure must have been a minimum of three years prior to applying.from date of sale.
3-C. Eligible Property
1. Property purchased with CDBG funds must be located in:
a. The City of Turlock city limits excluding county pockets.
2. Property type must be:
a. Single-family housing; or
b. Condominium unit; or
c. A town home unit or
3. Eligible property must have the following occupancy characteristics:
a. Currently occupied by the owner-seller of the property; or b. If a rental property, sold only to the existing tenant; or c. Vacant for four months or longer prior to submission of purchase offer by Borrower. 3-D. Affordability Period
1. CDBG regulations do not currently require an Affordability Period. 3-E. Loan Terms
1. Security:
a. CDBG loans shall be secured by the property.
Section 3 – CDBG Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
14 b. The lien securing repayment of the CDBG loan shall be subject only to liens, encumbrances and other matters of record reviewed and approved by the City.
2. Deferment:
a. Principal and interest payments shall be deferred for 30 years.the term of the CDBG loan.
3. Repayment:
a. The CDBG loan principal and interest shall be due and payable upon:
1) Sale, transfer, rental or lease of the property.
2) Borrower’s failure to occupy the Property as Borrower’s principal place of residence (Borrower must certify occupancy annually).
3) The CDBG loan maturity date.
i. If it is determined by the Housing Program Services Division staff that repayment of the loan at maturity will cause a hardship to the Borrower, the FTHB Loan Committee may, at its option, elect to:
(1) Approve a one-time additional deferral period of up to 30 years in length at 0% additional interest, or;
(2) Convert the debt (principal and accrued interest) to a 15- year amortized loan at 0% additional interest.
4) The maturity date, or full repayment, of any debt secured by the Property that is senior to the CDBG deed of trust.
5) Upon default under the CDBG promissory note, deed of trust, the deed of trust rider or the covenants, or other recorded documents of record pertaining to the property.
6) Borrower’s cash-out refinance of any superior mortgages. 7) The City will provide deferred payment loans; the City may accept voluntary payments on the loan.The Borrower may repay the loan balance at any time with no pre-payment penalty. Loan payments will be credited to the principal first and then to interest. The borrower may repay the loan balance at any time with no pre-payment penalty.
4. Assumability:
a. CDBG loans are not assumable.
5. Transfer of Interest Exceptions:
Section 3 – CDBG Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
15 a. CDBG loans do not have transfers of interest exceptions.
6. Loan Term:
a. The CDBG loan term shall be 30 years, except upon the occurrence of any condition requiring repayment as noted above.
7. Prepayment Penalty:
a. A Borrower may prepay the CDBG loan, in part or whole, at any time without penalty.
8. Interest:
a. The loan shall be zero (0%) percent interest for the initial fifteen (15) years followed by a 15-year period with a two (2%) simple interest rate.The loan shall be at three (3%) percent simple interest for thirty (30) years and; b. There are no payments due on the loan during the life of the ownership of the property by the Borrower and;
c. The total amount of the silent second loan plus any accrued interest becomes due and payable at the time of sale, refinance, transfer of ownership, rental, is no longer occupied by the primary borrower or thirty (30) years whichever comes first. d. The CDBG down payment assistance cannot be used for first position loans.
9. Restrictions on Sale:
a. In any transaction in which the CDBG loan is the only secondary financing, the Borrower cannot be restricted from selling the home at its fair market value at any time.
ba. Subsequent buyers, unless assisted with a CDBG loan under this Program, do not need to meet the Eligible Household requirements set forth above. c. b. Resale restrictions required by other secondary financing sources used in conjunction with a CDBG loan shall prevail.
3-F. Subordinate Financing to CDBG Loan
1. Fees and/or charges for subordinate loan financing shall be consistent with reasonable loan origination fees for first mortgage financing as determined by the City based on industry standards.
2. Balloon payments due before the maturity date of the CDBG loan are not permitted.
3. All subordinate financing shall defer principal and interest payments for the term of the CDBG loan.
Section 3 – CDBG Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
16 3-G. CDBG Target Areas
No target areas defined.
3-H. Program Income
1. All repayments of CDBG loan principal and interest shall be received by City and deposited into a separate account maintained by City’s Finance Department.
2. The account shall be interest bearing into which all earned interest shall be deposited.
3. All funds deposited into the account shall be the property of the City.
4. A line item for reuse of CDBG funds will be inserted into City’s fiscal year budget allocating and approving use of funds for CDBG eligible activities.
5. All Program Income funds shall be expended in accordance with the CDBG regulations and the CDBG Agreement between the City and HUD. 3-I. Matching
No Matching requirements apply.
3-J. Maximum Loan Amount
1. The maximum loan amount for a CDBG first-time homebuyer is $100,000.
Section 4 – HOME Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
17 4. HOME Program Requirements
4-A. Overview
In 1999, the City of Turlock and Stanislaus County, serving as an Urban County entitlement jurisdiction for the purposes of the Community Development Block Grant (CDBG), entered into an intergovernmental agreement for Tthe Federal Home Investment Partnerships (HOME) Program4funds creating the City of Turlock/Stanislaus County HOME Consortium (Consortium). The Stanislaus Urban County is comprised of the unincorporated areas of Stanislaus County, and the cities of Ceres, Hughson, Newman, Oakdale, Patterson, Riverbank, Turlock, and Waterford. The City of Turlock served as the lead entity for the Consortium from July 1999 through June 2023. Beginning July 2023, Stanislaus County assumed the role of lead entity for the Consortium.
HOME is one of several funding sources providing assistance to eligible Borrowers under this Program. The following applies to HOME funded loans made under this Program.
Specifically, these policies and procedures will be utilized for any new projects funded with 2022 and earlier HOME funds still under the City of Turlock’s purview. Rental Rehabilitation Program funding will follow HOME program guidelines and will be used for matching. 4-B. Eligible Household
1. To be eligible to receive HOME funds, an individual household shall:
a. Be a low-/moderate income household (income equal to or less than 80% of area median income as adjusted for household size) when considering the gross annual income of all household residents 18 years old or older. Annual income is as defined in the Code of Federal Regulations, Title 24 Part 5. The following household members are not counted to determine family size for income limits purposes: foster children, unborn children and children being pursued for legal custody or adoption who are not currently living with the household. A child who is subject to as sharedcustody agreement in which the child resides with the household at least 50% of the time, can be counted.
1) City shall determine annual gross income in accordance with the Code of Federal Regulations (CFR), Title 24, Part 5, Section 5.609(b) attached hereto as Exhibit “A”.
2) Income from assets is recognized as part of annual income under 24 CFR Part
5. City shall determine income from assets in accordance with 24 CFR 5. b. Include as Borrowers all persons who will be or are on title to the property. Cosigners and co-mortgagors who do not intend to occupy the property are prohibited. c. Be a first- time homebuyer and occupy the property as a principal place of residence.
A first time homebuyer is defined as a purchaser of a unit who neither has, nor has 4 Authorized under the HOME Investment Partnerships Act at title II of the Cranston-Gonzalez National Affordable Housing act, as amended, 42 U.S.C. 12701 et seq. The regulations implementing the Home Investment Partnerships (HOME) Program are found at 24 CFR Part 92. HOME funds are administered by the United State Department of Housing and Urban Development (HUD).
Section 4 – HOME Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
18 had, a present ownership in a principal residence at any time during the three-year period prior to the date on which a mortgage pursuant to this Program is executed, except as otherwise allowed by the specific funding source(s) utilized.
2. The following individual or individuals may not be excluded from consideration as a first time homebuyer under this section:
a. A single parent or remaining spouse/partner who, while married or during cohabitancy, owned a home with his or her spouse or resided in a home owned by the spouse/partner, and has no ownership interest in a residence other than provided for in this Program. 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.
3. For purposes of qualifying Borrower for a first mortgage, credit worthiness criteria shall be:
a. No late payments for the 12-month period prior to1 year from date of applying. b. No outstanding judgments or liens.
c. Outstanding collections may be paid out of closing not to be included as part of required down payment or from City funds.
d. Bankruptcy date of discharge must be must have been a minimum of two years prior to the date of applying from date of discharge with no additional collections. e. Foreclosure must have been a minimum of three years prior to the date of applying. from date of sale.
4-C. Eligible Property
1. Property purchased with HOME funds must be located in:
a. The City of Turlock city limits excluding county pockets.
2. Property type must be:
a. Single-family housing; or
b. Condominium unit; or
c. Townhome unit; or
c. d. One to four units of residential properties.
3. Eligible property must have the following occupancy characteristics:
a. Currently occupied by the owner-seller of the property; or b. If a rental property, sold only to the existing tenant; or
Section 4 – HOME Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
19 b. c. Vacant for four months or longer prior to submission of purchase offer by Borrower.
4. Eligible property must:
a. Meet property standards as identified in 24 CFR 92.251. b. Each of the major systems must have a remaining useful life of a minimum of 5 years:
a. Major systems are structural support, roofing, cladding, weatherproofing (e.g. windows, doors, siding, gutters); plumbing, electrical and heating, ventilation, and air conditioning.
5. Eligible property must have an initial value not exceeding 95% of the area median purchase price for the housing type as established by HUD. 4-D. Affordability Period
1. Housing purchased with HOME funds under this program must remain the principal place of residence of the Borrower for a minimum period of time as defined by the amount of HOME funds invested and as shown below:
HOME Funds Invested Minimum Period of Affordability
Under $125,000 5 years
$125,000 to $450,000 10 years
Over $450,000 15 years
2. Failure of Borrower to occupy the HOME-assisted unit as his or her principal place of residence for the applicable period shall cause the HOME loan to become immediately due and payable.
4-E. Loan Terms
All loan terms clearly communicated in loan agreement, promissory note and regulatory agreement and a deed restriction is enforced to ensure period of affordability.
1. Security:
a. HOME loans shall be secured by the property.
b. The lien securing repayment of the HOME loan shall be subject only to liens, encumbrances and other matters of record reviewed and approved by the City.
Section 4 – HOME Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
20 2. Deferment:
a. Principal and interest payments shall be deferred for the term of the HOME loan.
3. Repayment:
a. The HOME loan principal and interest shall be due and payable upon:
1) Sale, transfer, rental or lease of the property.
2) Borrower’s failure to occupy the Property as Borrower’s principal place of residence (Borrower must certify occupancy annually).
3) The HOME loan maturity date.
i. If it is determined by the Housing Program Services Division staff that repayment of the loan at maturity will cause a hardship to the Borrower, the FTHB Loan Committee may, at its option, elect to:
(1) Approve a one-time additional deferral period of up to 30 years in length at 0% additional interest, or;
(2) Convert the debt (principal and accrued interest) to a 15 year amortized loan at 0% additional interest.
4) The maturity date, or full repayment, of any debt secured by the Property that is senior to the HOME deed of trust.
5) Upon default under the HOME promissory note, deed of trust, the deed of trust rider or the covenants, or other recorded documents of record pertaining to the property.
6) Borrower’s cash-out refinance of any superior mortgages. 7) The City will provide deferred payment loans; the City may accept voluntary payments on the loan.The Borrower may repay the loan balance at any time with no pre-payment penalty. Loan payments will be credited to the principal first and then to interest. The borrower may repay the loan balance at any time with no pre-payment penalty.
4. Assumability:
a. HOME loans are not assumable.
5. Transfer of Interest Exceptions:
a. HOME loans do not have transfers of interest exceptions.
6. Loan Term:
Section 4 – HOME Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
21 a. The HOME loan term shall be 30 years, except upon the occurrence of any condition requiring repayment as noted above.
7. Prepayment Penalty:
a. A Borrower may prepay the HOME loan, in part or whole, at any time without penalty.
However, prepayment does not void the period of affordability as stipulated above.
8. Interest:
a. The loan shall be at zero percent (0%) interest for the initial fifteen (15) years followed by a 15-year period with a two percent (2%) simple interest rateThe loan shall be at three (3%) percent simple interest for thirty (30) years and; b. There are no payments due on the loan during the life of the ownership of the property by the Borrower and;
c. The total amount of the silent second loan plus any accrued interest becomes due and payable at the time of sale, refinance, transfer of ownership, rental, is no longer occupied by the primary borrower or thirty (30) years whichever comes first.
Db.. In instances where the City loan would be in first position, the loan will become a 30 year fully amortized loan at 3% simple interest.
9. Restrictions on Sale:
a. In any transaction in which the HOME loan is the only secondary financing, the Borrower cannot be restricted from selling the home at its fair market value at any time.
b. Subsequent buyers, unless assisted with a HOME loan under this Program, do not need to meet the Eligible Household requirements set forth above. c. Resale restrictions required by other secondary financing sources used in conjunction with a HOME loan shall prevail.
10. Recapture of HOME Funds:
a. In the event of any event requiring repayment as defined above, the entire amount of the original HOME loan principal and any contingent interest due shall be recaptured by City. If the loan is paid in full prior to the end of the affordability period, funds will be recorded as recaptured funds and deposited into the HOME account. After the affordability period, funds will be recorded as program income and deposited into HOME account.
4-F. Subordinate Financing to HOME Loan
1. Fees and/or charges for subordinate loan financing shall be consistent with reasonable loan origination fees for first mortgage financing as determined by the City based on industry standards.
Section 4 – HOME Program Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
22 2. Balloon payments due before the maturity date of the HOME loan are not permitted.
3. All subordinate financing shall defer principal and interest payments for the term of the HOME loan.
4-G. HOME Target Areas
No target areas defined.
4-H. Program Income
1. All repayments of HOME loan principal and interest shall be received by City and deposited into a separate account maintained by City’s Finance Department.
2. The account shall be interest bearing into which all earned interest shall be deposited.
3. All funds deposited into the account shall be the property of the City.
4. A line item for Program Income of HOME funds will be inserted into City’s fiscal year budget allocating and approving use of funds for HOME eligible activities.
5. All Program Income funds shall be expended in accordance with the HOME regulations and the HOME Agreement between the City and HUD. 4-I. Matching
Matching is the commitment of non-federal funds to supplement HOME funds used to assist in the provision of affordable housing. HOME funding require a matching contribution5 of not less that 25 percent of the funds drawn from the City’s HOME Investment Trust Fund Treasury account in that fiscal year, unless waived or reduced by HUD. Matching funds are calculated on a project-by-project basis and applied on a program-wide basis. 4-J. Maximum Loan Amount
1. The maximum loan amount for a HOME first-time homebuyer is $100,000. 5 Defined at 24 CFR 92.218
Section 5 – Neighborhood Stabilization Program Requirements City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
23 5. Neighborhood Stabilization Program Requirements
5-A. Overview
The Neighborhood Stabilization Program (NSP)6 is one of several funding sources providing assistance to eligible Borrowers under this Program. The following applies to NSP loans made under this Program.
5-B. Eligible Household
1. To be eligible to receive NSP funds, an individual household shall:
a. Be a low to moderate or middle income household (income equal to or less than 120% of the area median income as adjusted for household size) when considering the gross annual income of all household residents 18 years old or older. In the event that the City is awarded NSP set-a-side funds, these funds will be limited to applicants not exceeding 50% of the Median Area Income. Annual income is as defined in the Code of Federal Regulations, Title 24 Part 5. The following household members are not counted to determine family size for income limits purposes: foster children, unborn children and children being pursued for legal custody or adoption who are not currently living with the household. A child who is subject to as sharedcustody agreement in which the child resides with the household at least 50% of the time, can be counted.
1) City shall determine annual gross income in accordance with the Code of Federal Regulations (CFR), Title 24, Part 5, Section 5.609(b) attached hereto as Exhibit “A”.
2) Income from assets is recognized as part of annual income under 24 CFR Part
5. City shall determine income from assets in accordance with 24 CFR 5. b. Include as Borrowers all persons who will be or are on title to the property. Cosigners and co-mortgagors who do not intend to occupy the property are prohibited. c. Occupy the property as a principal place of residence. Applicant does not have to be a first time home buyer.
2. (Section held for future use)
3. For purposes of qualifying Borrower for a first mortgage, credit worthiness criteria shall be:
a. No late payments in the 12 months prior to 1 year from date of applying. b. No outstanding judgments or liens.
6 The program is authorized under Title III of the Housing and Economic Recovery Act (HERA) of 2008 and is administered by the California Department of Housing and Community Development.
NSP Program guidelines include CDBG regulations at 24 CFR Part 570.
Section 5 – Neighborhood Stabilization Program Requirements City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
24 c. Outstanding collections may be paid out of closing not to be included as part of required down payment or from City funds.
d. Bankruptcy date of discharge must have been a minimum of two years prior to the date of applyingfrom date of discharge with no additional collections. e. Foreclosure must have been a minimum of three years prior to date of applying.from date of sale.
5-C. Eligible Property
1. Property purchased with NSP funds must be located in:
a. City limits of Turlock within the following Census tracts will be identified as the primary areas of concentration. County pockets within these Census Tracts are excluded as eligible properties.
36.02 (Block groups 1 and 2)
37.00 (Block group 1)
38.01 (Block groups 1, 2, 3 and 4)
38.02 (Block groups 1, 2, 3, and 4)
38.03 (Block group 1)
39.04 (Block groups 1, 2, 3, and 4)
39.05 (Block group 4)
39.06 (Block groups 2 and 3)
39.07 (Block group 2)
39.08 (Block groups 1 and 2)
39.09 (Block groups 2 and 4)
b. City Limits of Turlock within the following Census Tracts will serve as secondary or additional areas of concentration if no eligible properties are available in the primary areas. County pockets within these Census Tracts are excluded as eligible properties.
36.02 (Block group 3)
36.03 (Block group 3)
36.04 (Block groups 3 and 5)
37.00 (Block group 2)
38.03 (Block group 2)
39.05 (Block groups 1, 2, and 3)
39.06 (Block group 1)
39.07 (Block groups 1, 3, and 4)
39.09 (Block groups 1 and 3)
2. Property type must be:
a. Single-family housing; or
b. Condominium unit; or
c. A town home unit or
Section 5 – Neighborhood Stabilization Program Requirements City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
25 3. Eligible property must have the following occupancy characteristics:
a. Property must be either foreclosed or abandoned. Abandonment is defined by NSP as a property whose mortgage or tax foreclosure proceedings have been initiated, no mortgage or tax payments have been made by the property owner for at least 90 days, AND the property has been vacant for at least 90 days. Foreclosed is defined as when the mortgage or tax foreclosure is complete under state or local law. b. Property must be purchased at a discount7 rate of at least 1% from the current market appraised value8.
5-D. Affordability Period
1. Housing purchased with NSP funds under this program must remain the principal place of residence of the Borrower for a minimum period of time as defined by the amount of NSP funds invested and as shown below:
NSP Funds Invested Minimum Period of Affordability
Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
2. Failure of Borrower to occupy the NSP-assisted unit as his or her principal place of residence for the applicable period shall cause the NSP loan to become immediately due and payable.
5-E. Loan Terms
1. Security:
a. NSP loans shall be secured by the property.
b. The lien securing repayment of the NSP loan shall be subject only to liens, encumbrances and other matters of record reviewed and approved by the City.
2. Deferment:
a. Principal and interest payments shall be deferred for 30 years.the term of the NSP loan.
3. Repayment:
a. The NSP loan principal and interest shall be due and payable upon:
1) Sale, transfer, rental or lease of the property.
7 Section 2301(d)(1) of Housing and Economic Recovery Act (HERA) limits the purchase price of the home. 8 The Current Market Appraised Value means the value of a foreclosed upon home or residential property that is established through an appraisal made in conformity with the appraisal requirements of the URA at 49 CFR 24.103 and completed within 60 days prior to an offer made for the property.
Section 5 – Neighborhood Stabilization Program Requirements City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
26 2) Borrower’s failure to occupy the Property as Borrower’s principal place of residence (Borrower must certify occupancy annually).
3) The NSP loan maturity date.
i. If it is determined by the Housing Program Services Division staff that repayment of the loan at maturity will cause a hardship to the Borrower, the FTHB Loan Committee may, at its option, elect to:
(1) Approve a one-time additional deferral period of up to 30 years in length at 0% additional interest, or;
(2) Convert the debt (principal and accrued interest) to a 15 year amortized loan at 0% additional interest.
4) The maturity date, or full repayment, of any debt secured by the Property that is senior to the NSP deed of trust.
5) Upon default under the NSP promissory note, deed of trust, the deed of trust rider or the covenants, or other recorded documents of record pertaining to the property.
6) Borrower’s cash-out refinance of any superior mortgages. 7) The City will provide deferred payment loans; the City may accept voluntary payments on the loan.The Borrower may repay the loan balance at any time with no pre-payment penalty. Loan payments will be credited to the principal first and then to interest. The borrower may repay the loan balance at any time with no pre-payment penalty.
4. Assumability:
a. NSP loans are not assumable.
5. Transfer of Interest Exceptions:
a. NSP loans do not have transfers of interest exceptions.
6. Loan Term:
a. The NSP loan term shall be 30 years, except upon the occurrence of any condition requiring repayment as noted above.
7. Prepayment Penalty:
a. A Borrower may prepay the NSP loan, in part or whole, at any time without penalty.
8. Interest:
Section 5 – Neighborhood Stabilization Program Requirements City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
27 a. The loan shall be at zero percent (0%) interest for the initial fifteen (15) years followed by a 15-year period with a two percent (2%) simple interest rate.The loan shall be at three (3%) percent simple interest for thirty (30) years and; b. There are no payments due on the loan during the life of the ownership of the property by the Borrower and;
c. The total amount of the silent second loan plus any accrued interest becomes due and payable at the time of sale, refinance, transfer of ownership, rental, is no longer occupied by the primary borrower or thirty (30) years whichever comes first. b.d. The NSP down payment assistance cannot be used for first position loans.
9. Restrictions on Sale:
a. In any transaction in which the NSP loan is the only secondary financing, the Borrower cannot be restricted from selling the home at its fair market value at any time.
a.b. Subsequent buyers, unless assisted with a NSP loan under this Program, do not need to meet the Eligible Household requirements set forth above. b.c.Resale restrictions required by other secondary financing sources used in conjunction with an NSP loan shall prevail.
5-F. Subordinate Financing to NSP Loan
1. Fees and/or charges for subordinate loan financing shall be consistent with reasonable loan origination fees for first mortgage financing as determined by the City based on industry standards.
2. Balloon payments due before the maturity date of the NSP loan are not permitted.
3. All subordinate financing shall defer principal and interest payments for the term of the NSP loan.
5-G. NSP Target Areas
a. City limits of Turlock within Census tracts 38.02, 39.04, 39.06 and 39.08 will be identified as the primary areas of concentration. Census Tracts 36.02, 37.00, 38.01, 38.03, 39.05,
39.07 and 39.09 will serve as secondary or additional areas of concentration if no eligible properties are available in the primary areas. County pockets within these Census Tracts are excluded as eligible properties.
5-H. Program Income
1. All repayments of NSP loan principal and interest shall be received by City and deposited into a separate account maintained by City’s Finance Department.
2. The account shall be interest bearing into which all earned interest shall be deposited.
Section 5 – Neighborhood Stabilization Program Requirements City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
28 3. All funds deposited shall follow NSP program income guidelines.
4. A line item for NSP program income funds will be inserted into City’s fiscal year budget allocating and approving use of funds for NSP eligible activities.
5. All funds shall be expended in accordance with the regulations and the NSP Agreement between the City and HCD.
5-I. Matching
No Matching requirements apply.
5-J. Maximum Loan Amount
1. The maximum loan amount for a first-time homebuyer loan funded with NSP is $25,000.
Must be combined with other funding sources if need is greater than $25,000, with a maximum limit of $100,000.
Section 6 – (Place holder for future funding source)
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
29 6. (Place Holder for future funding source)Permanent Local Housing Allocation (PLHA)
6-A. Overview
Space reserved for future useThe Permanent Local Housing Allocation (PLHA) Program, administered by the California Department of Housing and Community Development (HCD), is one of several funding sources providing assistance to eligible borrowers under this program.
6-B. Eligible Household
Space reserved for future use
1. To be eligible to receive PLHA funds, a household shall:
a. Be a low- to moderate-income household, defined as income equal to or less than 120% of the area median income as adjusted for household size, when considering the gross income of all household residents 18 years of age or older. The following household members are not counted to determine family size for income limits purposes: foster children, unborn children, and children being pursued for legal custody or adoption who are not currently living in the household. A child who is subject to a shared-custody agreement in which the child resides with the household at least 50% of the time, can be counted.
i. Gross income is defined in the California Code of Regulations (CCR), Title 25, Section 6914 and is: “The anticipated income of a person or family for the twelve-month period following the date of determination of income.” ii. Income from assets is included as part of annual income in accordance with 24 CFR Part 5. The City will calculate income derived from assets in accordance with 24 CFR Part 5.
b. Include as Borrowers all persons who will be on the title of the property. c. Be a first-time homebuyer and occupy the property as a principal place of residence.
A first-time homebuyer is defined as a purchaser of a unit who neither has, nor has had, a present ownership in a residence at any time during the three-year period prior to the date on which a mortgage pursuant to this Program is executed, except as otherwise allowed by the specific funding source(s) utilized.
2. For purposes of qualifying a Borrower for a first mortgage, credit worthiness creiteria shall be determined by the following:
a. No late payments in the 12-month period prior to applying. b. No outstanding judgements or liens.
c.Outstanding collections may be paid at closing but cannot be included as part of the required down payment or paid using City funds.
Section 6 – (Place holder for future funding source)
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
30 d. Bankruptcy date of discharge must be a minimum two (2) years prior to the date of applying with no additional collections.
6-C. Eligible Property
Space reserved for future use
1. Property purchased with PLHA funds must be located in:
a. The City of Turlock city limits excluding County pockets.
2. Property type must be:
a. Single-family housing; or
b. Condominium unit; or
c. A town home unit.
3. Eligilble property must have the following occupancy characteristics:
a. Currently occupied by the owner-seller of the property; or b. If a rental property, sold only to existing tenant; or c. If rental property, must be vacant for a minimum of 4 months prior to the applicant putting in an offer to purchase.
6-D. Affordability Period
Space reserved for future use
1. PLHA funds do not currently have an affordability period. 6-E. Loan Terms
Space reserved for future use
1. Security:
a. PLHA loans shall be secured by the property.
b. The lien securing repayment of the PLHA loan shall be subject only to liens, encumbrances, and other matters of record reviewed and approved by the City.
2. Deferrment:
a. Principal and interest payments shall be deferred for 30 years.
3. Repayment:
a. The PLHA loan principal and interest shall be due and payable upon:
Section 6 – (Place holder for future funding source)
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
31 1.) Sale, transfer, rental, or lease of property.
2.) Borrower’s failure to occupy the property as Borrower’s principal place of residence (Borrower must certify occupancy annually).
3.) The PLHA maturity date:
i. If it is determined by the Housing Program Services Division staff that repayment of the loan at maturity will cause a hardship to the Borrower, the Loan Committee may elect to:
a. Approve a one-time additional deferral period of up to 30 years at 0% interest or:
b. Convert the debt (principal plus accrued interest) to a 15-year amortized loan at 0% interest.
4.) The maturity date, or full repayment, of any debt secured by the property that is senior to the PLHA deed of trust.
5.) Upon default under the PLHA promissory note, deed of trust, deed of trust rider or the covenants, or other recorded documents of record pertaining to the property.
6.) Borrower’s cash out refinance of any superior mortgages.
7.) The Borrower may repay the loan balance at any time with no pre-payment penalty. Loan payments will be credited to principal first and then to interest.
4. Assumability:
a. PLHA loans are not assumable.
5. Transfer of Interest Exceptions:
a. PLHA loans do not have transfers of interest exceptions.
6. Loan Term:
a. The PLHA loan term shall be 30 years, at a 15 year, 0% interest to follow with a 15- year, 2% simple interest.
7. Prepayment Penalty:
a. A Borrower may prepay the PLHA loan, in part or whole, at any time without penalty.
8. Interest:
a. The loan shall be at zero (0%) percent simple interest for fifteen (15) years followed by two percent (2%) simple interest for the remaining 15 years and;
Section 6 – (Place holder for future funding source)
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
32 b. There are no payments due on the loan during the life of the ownership of the property by the Borrower and;
c. The total amount of the silent second loan plus any accrued interest becomes due and payable at the time of sale, refinance, transfer of ownership, rental, is no longer occupied by the primary borrower or thirty (30) years whichever comes first. d. In instances where the City loan would be in first position, the loan will become a 30 year fully amortized loan at 3% simple interest.
9. Restrictions on Sale:
a. Subsequent buyers, unless assisted with a PLHA loan under this Program, do not need to meet the Eligible Household requirements set forth above. b. Resale restrictions required by other secondary financing sources used in conjunction with a PLHA loan shall prevail.
6-F. Subordinate Financing
Space reserved for future use.
1. Fees and/or changes for subordinate loan financing shall be consistent with reasonable loan origination fees for first mortgage financing as determined by the City based on industry standards.
2. Balloon payments due before the maturity date of the PLHA loan are not permitted.
3. All subordinate financing shall defer principal and interest payments for the term of the PLHA loan.
6-G. Target Areas
Space reserved for future useNo target areas defined.
6-H. Program Income
Space reserved for future use.
1. All repayments of PLHA loan principal and interest shall be received by the City and deposited into a separate account maintained by the City’s Finance Department.
2. The account shall be interest bearing into which all earned interest shall be deposited.
3. All funds deposited into the account shall be the property of the City.
4. A line item for reuse of PLHA funds will be inserted into the City’s fiscal year budget allocating and approving the use of funds for PLHA eligible activities.
Section 6 – (Place holder for future funding source)
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
33 5. All program income funds shall be expended in accordance with PLHA regulations and the PLHA agreement between the City and HCD.
6-I. Matching
Space reserved for future use. No matching requirements apply. 6-J. Maximum Loan Amount
1. The maximum loan amount for a PLHA first-time homebuyer is $100,000.
Section 7 – FTHB Mortgage Underwriting Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
34 7. First Time Homebuyer
Mortgage Underwriting Requirements
(for all funding sources)
7-A. Overview
1. The primary mortgage lender (Lender) shall utilize its own underwriting standards in reviewing and approving a Borrower’s application for a first mortgage loan.
2. In addition, the City shall ensure that the Borrower meets the underwriting standards for a mortgage loan(s) issued by the City in conjunction with this Program. The City conducts underwriting upon receipt of accepted purchase agreement and lenders 1003 and 1008 submittal. Many of these secondary underwriting standards will parallel those associated with the first mortgage, but the City shall take all necessary steps to ensure compliance with the requirements of this Program.
3. The Borrower must complete and sign the appropriate FTHB Program certifications. If the Lender becomes aware of misstatements whether negligently or willfully made, it must notify the City of Turlock immediately.
4. Secondary underwriting requirements must be met by a Borrower and verified by City in accordance with the following sections.
7-B. Verification of Previous Ownership Status
1. The Borrower may not have held an ownership interest in a residential property his/her principal residence within the past three years. Allowable exceptions are:
a. If the FTHB mortgage assistance is financed solely with City funds:
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 place of residence during the three-year period before the purchase of a home with CalHome assistance, a dwelling unit whose structure is:
i. Not permanently affixed to a permanent foundation in accordance with state or local regulations; or
Section 7 – FTHB Mortgage Underwriting Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
35 ii. 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.
2. The Borrower must provide copies of their last three (3) years signed federal tax returns, verifying that the Borrower did not claim a principal residencehomeowner deduction for mortgage interest or taxes on real property. Acceptable alternatives are as set forth below:
a. If the Applicant filed the 1040 Long Form for the prior three years and cannot produce an original copy of the signed tax returns, then the Applicant must request a copy of the returns from the IRS.
b. If the Borrower has filed the short form 1040A or 1040EZ for the prior three years and cannot produce the signed returns, the City will accept a letter from the IRS verifying the filing status of the Borrower. The letter should confirm that the Borrower filed the 1040A or 104OEZ for the years in question. The Borrower can request tax account information from the Local IRS office. This information will be provided on IRS Letter Form 1722 and will include: (1) name and social security number; (2) type of return filed; (3) marital status; (4) tax shown on return; (5) adjusted gross income; (6) taxable income; (7) selfemployment tax; and (8) number of exemptions. If the address on the tax returns filed is different than the Borrower’s current address, the Borrower should also provide a written statement (signed by all Borrowers) indicating that the previous returns had been filed at a different address.
The tax account information should be requested, in person, from the IRS office. The tax returns must have an original signature certifying that "this is a true and exact copy of the returns submitted to IRS”.
c. In the event the Borrower was not obligated to file federal income tax returns for any of the preceding three years, it will be necessary for the City to obtain from the Borrower a completed and signed Applicant Income Tax Certification which is required in place of (a) or (b) above. The Applicant Income Tax Certification must be accompanied with documented proof of the reason for not filing taxes.
d. When an application is submitted during the period between January 1 and April 15 and the Borrower has not yet filed his/her Federal income tax return for the preceding year with the IRS, the City may with respect to such year, rely on a certification of the Borrower that the Borrower is not entitled to claim deductions for taxes or interest on indebtedness with respect to property constituting his/her Principal Residence for the preceding calendar year. The certification is included within the Applicant Income Tax Certification.
7-C. Verification of Borrower Income
Income eligibility criteria vary according to the secondary financing source utilized. Funding is determined based on available funding and property conditions. The City must verify a Borrower’s income in accordance with the following:
1. CalHome, CDBG, and HOME, Borrowers must have an annual gross income equal to or less than 80% of the area median income as adjusted for household size. NSP and PLHA
Section 7 – FTHB Mortgage Underwriting Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
36 borrowers must have an annual gross income equal to or less than 120% of the area median income as adjusted for household size. See Exhibit “C” for income limits. a. Income limits used to determine eligibility for CalHome funding must be those published by the State of California Department of Housing and Community Development available from the City.
b. Income limits used to determine eligibility for HOME, CDBG, and NSP funding must be those published by the U.S. Department of Housing and Urban Development and available from the City.
2. Household size is determined by counting all members of the household, regardless of age, who will be permanent residents in the home.
3. The City shall determine the Borrower’s annual gross income by obtaining source documentation verifying income and asset inclusions listed in Exhibit “A” of this Manual. a. For self-employed borrowers, source documentation shall also include but not necessarily be limited to:
1) 3 years federal tax returns. (A minimum of the two most recent years must show income as self- employed)
2) A profit and loss statement prepared by an accountant or bookkeeper. The City reserves the right to request an audited Profit and Loss statement by a Certified Accountant/Bookkeeper.
4. Income from all adult household members 18 years of age or older shall be counted to determine household income eligibility. Income of borrowers will be used to determine loan eligibility.
5. The Borrower’s gross annual income must then be projected by the City over the upcoming 12-month period and judged to not exceed the applicable income limit. The City shall complete an Income Summary Worksheet.
a. If documentation is provided by the Borrower that his or her current circumstances may be about to change, this information must be used in the projection of gross annual income. For instance, if a Borrower has documented income of $10.00/hour, but a negotiated union contract will increase this amount to $15.00/hour 6 months hence, the anticipated additional income must be counted in the projection.
6. Assets
a. All income from assets must be included in the calculations determining the Borrower’s gross annual income.
b. When the cash value of all of a Borrower’s assets exceeds $5,000, annual gross income shall include the greater of:
1) The actual amount of income, if any, derived from all household assets; or
Section 7 – FTHB Mortgage Underwriting Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
37 2) The current HUD Passbook rate multiplied by the cash value of all such assets.2.0% (or the current HUD Passbook Rate 2011) of the cash value of all such
assets.
c. As with income, the value of a Borrower’s assets must be projected over the following 12-month period and judged to not exceed the applicable income limit.
7. Income of Co-Borrower
a. If a co-Borrower will be both on the title and the deed of trust, his or her gross annual income must be included in determining eligibility for the program. b. The income of any other person expected to both live in the residence and be secondarily liable for the mortgage must be counted and verified as noted above. c. Co-signers and co-mortgagors who do not intend to occupy the property are prohibited.
7-D. Credit
1. A credit report will be obtained at time of application by the City for every person, 18 years and older, applying for a loan through the FTHB program. For married couples, credit reports will be required of both spouses, to determine credit worthiness and household debt, even if one spouse will not be on title.
For purposes of qualifying Borrower for a City mortgage, credit worthiness criteria shall be:
a. No late payments within the 12 months prior to the1 year from date of applying. b. No outstanding judgments or liens.
c. Outstanding collections may be paid out of closing not to be included as part of required down payment or from City funds.
d. Bankruptcy date of discharge must have been a minimum of two years prior to the date of applyingfrom date of discharge with no additional collections. e. Foreclosure must have been a minimum of three years from date of sale. 7-E. Purchase Price
1. The City will obtain a copy of the signed purchase contract for verification purposes that the FTHB Program’s purchase price limit has not been exceeded. 7-F. Maximum Sales/Price Value Limit
1. 1. The maximum sales price/value limit for a home purchased with the assistance of a City loan under this Program shall be as follows as per funding source:
Section 7 – FTHB Mortgage Underwriting Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
38 a. CDBG- up to 100% of the current median valuesales price of a single- family residence in Stanislaus County.
b. HOME – up to 95% of the current median value of a single-family residence in Stanislaus County.
c. If CalHome – up to 105% of the current median value of a single-family residence in Stanislaus County. funds are used for the acquisition and rehabilitation the amount may not exceed 105%.
d. PLHA – no maximum.
2. The median sales price shall be as documented in the most recent data set accepted by the United States Department of Housing and Urban Development (HUD) for use in City’s mortgage assistance program. The City utilizes the HUD HOME homeownership Value Limits to determine the median sales price, unless an exception is granted to the City per CFR 92.254 (a)(2)(iii).
7-G. Maximum Loan Amount
See Exhibit “B”
1. The City will provide “Gap” financing up to $100,000 toward the purchase of affordable housing to be occupied by the applicants. This refers to filling the “gap” between the amount the homebuyer has and the amount needed to secure a primary loan.
GAP FINANCING SUBSIDY CALCULATION EXAMPLE
Purchase Price of Property $ 400,000
Less primary loan borrower can obtain $(325,000)
Less program required down payment $( 5,000)
Equals “Gap” needed to purchase property $ 70,000
Plus estimated closing costs $ 16,000
Total Subsidy/Loan $ 86,000
7-H. Loan Documentation
1. All City loans shall be evidenced by the following documents and provisions. a. Promissory Note(s) payable to City in the principal amount of the loan and stating the terms and rate of interest.
b. Deed of Trust(s) securing the Note; this deed shall be recorded and shall secure City’s financial interest in the property.
c. Other appropriate security instrument naming City as beneficiary. d. Request for copy of “Request for Notice of Default”.
Commented [MC2]: So the city requires households
contribute $5K?
Commented [RC3R2]: Currently 3K, proposal is to change
to 5k
Section 7 – FTHB Mortgage Underwriting Requirements
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
39 7-I. Gift Funds
a. Gift funds to borrowers are permitted but will be limited to $5,000. These funds cannot be used toward the borrowers required contribution. b. Letter for gift funds must be provided to City Housing staff prior to loan committee approval. Letter must state the name of donor, amount being gifted, and that the funds are a gift and not a loan.
Section 8 – Application and Delivery Process
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
40 8. APPLICATION and DELIVERY PROCESS
(for all funding sources)
8-A. Overview
1. Eligible homebuyers apply for a first mortgage loan from a primary mortgage lender (Lender).
2. The City processes the FTHB Mortgage Application and associated documentation, and issues a FTHB pre-approval letter for the City mortgage loan.
3. The City funds the City’s FTHB mortgage loan concurrently with the first mortgage lender funding.
8-B. FTHB Mortgage Application Process
The FTHB processing procedures are designed to integrate with the Lender’s standard mortgage loan processing and underwriting procedures. Recognizing there are procedural variations among lenders, the procedures outlined here are meant to serve as guidelines with respect to the sequence of events. However, all the elements of the processing sequence outlined in this section must, regardless of sequence, be completed by the Lender, the City, the Borrower, and the Seller.
The Lender, Borrower and the City are responsible for performing the tasks related to the issuance of a FTHB Mortgage as identified below:
1. Eligibility/Pre-approval Phase
Borrower: Applies to Lender for a first mortgage and a FTHB mortgage. Provides all necessary documentation and authorizations to City of processing application.
Provide a copy of the certificate of completion for the homebuyer education workshop from the City of Turlock or a selected approved agency.
Lender: Determines if Borrower is eligible for primary mortgage financing.
Lender determines acceptability of first loan in accordance with applicable loans, and private mortgage insurance standards and/or underwriting guidelines.
Transmits the following to City:
Appraisal.
Preliminary Title report
Mortgage Credit Analysis
Section 8 – Application and Delivery Process
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
41 Certified Lead Inspection, applicable only to properties built prior to 1978. See section 8-E page 38 for more details. Commitment letter from Primary Lender.
City: Examines all documents for completeness and consistency. Issues a FTHB pre-approval letter, which is valid for a maximum of ninety days.
Inspects subject property for compliance with Basic Housing Quality Standards. Inspections will be completed less than 90 days prior to the commitment of funds. Copy of the FTHB Inspection form is placed in Borrower’s file.
The City of Turlock or a selected approved agency will offering First Time Homebuyer Education workshop to Borrower.
Conducts environmental review;
Verifies legality of unit(s) on subject property.
Verifies compliance with maximum per unit subsidies.
Confirms subject property location within specified areas by funding source (NSP and CalHome-funded only).
Verifies property has successfully cleared any outstanding Housing Quality Standards issues; if applicable, verifies that responsible party (Borrower or Seller) has mitigated all deteriorated paint surfaces issues and obtains all Lead Based Paint (LBP) forms from responsible party.
If being funded with HOME funds, verify property meets all property standards as identified in 24 CFR 92.251 and each major systems has a remaining useful life of a minimum of 5 years.
2. Pre-Closing Phase
Lender: Cooperates with City to obtain any additional information required under the Program.
Immediately notifies the City in writing of any cancellation of Lender’s first mortgage Pre-approval or commitment. The reason for cancellation must be clearly stated.
Confirms with City that the FTHB Pre-approval is still active and has not expired.
Section 8 – Application and Delivery Process
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
42 City: Confirms that the FTHB Pre-approval is still active and has not expired. If expired, an extension must be requested.
3. Closing Phase
Lender: Approves the first mortgage loan in accordance with Lender’s regular procedures.
Title Co.: Submits Lender’s Closing Certification to City. Submits copy of HUD-1 closing statement to City.
Forwards required first loan documents and Lender’s escrow instructions to City.
Borrower: Executes all first mortgage documents, FTHB mortgage documents, and all other related documents.
Borrower/Seller: If applicable, and after determination of responsible party, submits documentation certifying resolution of any deteriorated or leadbased paint issues to City.
City: Conducts final review of all FTHB submittals from Lender. Forwards FTHB mortgage promissory note, deed of trust and escrow instructions to escrow company.
Reviews Lender’s first mortgage loan documents and escrow instructions for compatibility with FTHB Program requirements. Loan Committee reviews and approves Request for Release of FTHB Program Funds.
Writes and transmits escrow instructions to escrow company. Issues check for FTHB mortgage funds made payable to escrow company.
8-C. Application Handling Priority
All FTHB Applications will be processed by the City according to the date of receipt.
Processing is subject to change in the event of special funding and special requirements. 8-D. Property Standards
The property purchased with City funds under this program must:
1. Be eligible pursuant to the program if it is a single-family residence, a condominium unit, or a townhome located within the city limits of Turlock. Manufactured housing unit, must
Section 8 – Application and Delivery Process
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
43 at the time of purchase be on a permanent foundation, connected to permanent utility hook-ups, and be located on land that is to be owned by the purchaser.
2. Meet or exceed HUD's Housing Quality Standards (HQS) prior to close of escrow.
The City's Housing Rehabilitation Specialist/Inspector shall undertake a HQS inspection of the proposed unit to determine the property's eligibility for the FTHB Program. The Rehabilitation Specialist inspects the property for compliance with all locally adopted codes and ordinances noted above less exceptions. All homes must pass the HQS inspection conducted by the City. Responsibility for correcting any deficient items noted shall be the sole responsibility of the Borrowerbuyer and/or seller. The only exception is when a CalHome Secondary Financing with Rehabilitation Program loan will occur.
For all loans funded with HOME funds, property must meet all property standards as identified in 24 CFR 92.251 and each major system must have a remaining useful life of a minimum of 5 years. The Housing Rehabilitation Specialist/Inspector will utilitze a comprehensive checklist to ensure property meets all standards of the funding.
The HQS inspection should not be confused with a home inspection and may not be relied upon by the Borrower. The City does not provide a home inspection for the Applicant. The City recommends that the Applicant safeguard their investment by hiring a certified home inspector to provide an objective written report of the condition of the home's systems as they appear and operate at the time of the inspection.
3. Comply with all locally adopted standards at the time of purchase. Locally adopted standards include, but are not limited to: the 2007 editions of the Uniform Building Code (U.B.C.), Uniform Mechanical Code (U.M.C.), Uniform Plumbing Code (U.P.C.), the National Electrical Code (N.E.C.), the California Building Code (C.B.C.), and Title 8 of the Turlock Municipal Code, less exceptions.
4. Must meet the accessibility requirements of the Fair Housing Act and Section 504 of the Rehabilitation Act of 1973.
5. In the event that the home does not meet the requirements as described above and CalHome funds are used as secondary financing, the home may be eligible under the following conditions;
a. Funds must be used for both acquisition and rehabilitation. Funds may not be used for only rehabilitation
b. Combined Secondary Financing and Rehabilitation loan cannot exceed 105% CLTV.
c. Rehabilitation Specialist will provide list of repairs c. Work must start no later than 30 days after purchase. d. Work must be completed within six months after home purchase. e. Must be done by a California licensed contractor
f. Work is allowable to the extent that it replaces or repairs items necessary to make a property habitable and usable.
See Rehabilitation Policies and Procedures for detailed information regarding the rehabilitation process.
8-E. Lead Based Paint (LBP)
Section 8 – Application and Delivery Process
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
44 All units assisted by the City must comply with part 35 of title 24 of the Code of Federal Regulations (24 CFR Part 35)9 implementing Lead-Based Paint regulations which include the HUD final regulation known as the Lead Safe Housing Rule effective 9/15/00 and the HUD/Environmental Protection Agency (EPA) Lead-based paint disclosure rule issued in 1996. The purpose of the Lead Safe Housing Rule is to protect young children from leadbased paint hazards in housing that is receiving federal assistance. It applies only to housing that was built before 1978; in that year, lead-based paint was banned nationwide for consumer use.
The program is subject to the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821- 4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851- 4856), and implementing regulations at part 35, subparts A, B, J, K, M and R of this title.
All housing units built prior to 1978 and utilizing City funds under this Program are subject to the following requirements:
1. Notification
a. All Applicants for the FTHB Program are provided with a notification of the dangers of lead-based paint. This notification takes the form of an EPA-approved lead hazard information pamphlet entitled “Protect your Family from Lead in Your HOME” (EPA -747-K-94-001) or an equivalent pamphlet that has been approved by the EPA. The Lead-based paint notification shall be available in English, Spanish and other languages as offered through HUD and the EPA. The brochure can be down loaded from the HUD website at http://www.hud.gov/offices/lead/healthyhomes/lead.cfm.
2. Lead-based Paint exposure- Properties Constructed prior to 1978 a. A residential property built prior to 1978 may present exposure to lead from lead based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. b. All housing units constructed prior to 1978 and utilizing City funds under this Program are subject to additional regulations to control lead-based paint hazards and must be inspected by a certified lead-base paint inspector, for defective paint. If any defective paint is discovered during the inspection, the seller and buyer shall be notified, and the unit shall automatically be ineligible for assistance, unless the defective paint is abated.
c. All remediation shall be completed in compliance with the practices recommended by the Occupational Safety and Health Administration (OSHA), the Environmental Protection Agency (EPA) and in 24 CFR 35.1345 Occupant protection and worksite preparation.
9 The 24 CFR Part 35 regulation implements sections 1012 and 1013 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, which is Title X of the Housing and Community Development Act of 1992. Sections 1012 and 1013 amend the Lead-Based Paint Poisoning Prevention Act of 1971.
Section 8 – Application and Delivery Process
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
45 After remediation, a certification by a certified lead based paint inspector shall be provided to the City of Turlock, the seller, and the buyer that no defective paint remains in the unit. Such certification shall then make the unit eligible for assistance.
3. Consumer Information Resources
For information on lead hazards and prevention contact the National Lead Information Center (NLIC) Hotline at 1(800) 424-LEAD [5323] or their website at http://www.epa.gov/oppt/lead/. NLIC provides the general public and professionals with information about lead hazards and their prevention.
8-F. Environmental Review
1. The environmental effects of activities carried out with State and Federal funds must be assessed in accordance with the provisions of the National Environmental Policy Act (NEPA).
2. The City shall conduct said environmental review in accordance with 24 CFR Part 58.
3. The environmental effects of activities carried out with City or State RDA funds must be assessed in accordance with the provision of the California Environmental Quality Act (CEQA).
8-G. Homebuyer Education Requirement
Homebuyer Education Course is required by all homebuyers on title receiving a FTHB loan.
The course must be provided by the City of Turlock or a selected agency. A copy of the certificate of completion of the 8 hour homebuyer education course must be submitted to the City. See Exhibit “D” for Homebuyer Education Curriculum.
The topics must include:
1. Preparing for homeownership
2. Available financing and credit analysis
3. Loan closing and homebuyer responsibilities
4. Home maintenance and loan servicing
8-H Mortgage Assistance Limit
See Exhibit “B”
8-I. Transfer of FTHB Mortgage
The City’s FTHB loan is not transferable with the exception of CalHome funded loans. See CalHome section 2-F (page 9) for more information.
8-J. Transfer of FTHB Application to Substitute Lender
Section 8 – Application and Delivery Process
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
46 1. If a Borrower decides to change from one Lender to another after a FTHB Pre-approval has been issued, the City will honor the original expiration date as long as no information has changed and the new Lender will comply with all regulations and time frames as required by loan and program.
2. The FTHB Pre-approval will be re-issued to the Borrower with the same original expiration date. The expiration date will not be extended without a formal request. 8-K. Pre-approval Letter from City
Upon completion of a full application and documentation, the qualifying Borrower will receive a Pre-approval letter from the City. This letter will only be good for 90 days from date of issuance. Specific timeframes for contracts and closings will be noted in the letter. 8-L. Changing Properties During the FTHB Second Application Process
1. If a Borrower has a pending FTHB Application and changes the property he/she is purchasing, the Borrower must submit a new purchase contract and all information which the City has determined necessary for reconsideration. 8-M. Resubmittal of FTHB Second Application Returned or Rejected If a FTHB Application has been returned or denied by the City, any resubmission, must include all information which the City has determined necessary for reconsideration. 8-N. Changes Prior To Closing
1. The Lender must immediately notify the City in writing of any change in the circumstances upon which the FTHB Pre-approval was issued. These changes may require re-certification of eligibility of the Borrower.
3. If changes to the circumstances upon which the FTHB Pre-approval was issued result in the Borrower or the Property not longer meeting the FTHB Program requirements, the FTHB Pre-approval will be revoked.
4. Eligibility of Borrower for a FTHB Second is based upon the Borrower’s current and projected income. The City will issue the FTHB Pre-approval based on facts verified as of the date the FTHB Pre-approval is issued. The income verified for commitment is valid as long as the loan closes within 90 days of the date of the FTHB Pre-approval and there are no additional sources of income that were not previously reported.
Any added source of Income received after the issuance of the FTHB Pre-approval but prior to closing must be verified by the City and the Borrower’s continued eligibility under the FTHB Program income limits must be confirmed and reported to the City.
7. Any changes in home ownership status, acquisition or rehabilitation cost and amount of mortgage loan after issuance of commitment and prior to closing must also be reported to the City.
a. If the Borrower acquires a present ownership interest in a principal residence prior to loan closing, the FTHB Pre-approval shall be revoked.
Section 8 – Application and Delivery Process
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
47 b. If the total acquisition cost of the residence purchased in connection with the FTHB Second increases so as to exceed the purchase price limitations set forth herein, the FTHB Pre-approval shall be revoked.
8-O. Conflict of Interest
No FTHB Program mortgage shall be issued to any person or the immediate family of any person who is in a decision-making position relative to the FTHB Program which includes but is not limited to the staff of the City.
Section 9 – FTHB Mortgage Loan Servicing by City
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
48 9. First Time Homebuyer
Mortgage Loan Servicing by City
(for all funding sources)
9-A. Overview
These loan servicing policies and procedures are intended to preserve the City’s financial interest in properties purchased with funding through the First Time Homebuyer Program. 9-B. Payment of Property Taxes and Insurance
1. Borrower must maintain property insurance coverage naming the City as loss payee when in first position or additional insured if the loan is a second mortgage. If borrower fails to maintain the necessary insurance, the City will contact the Borrower reminding them of the insurance requirement. The Borrower will have 30 days to provide proof of insurance. If verification of insurance is not received, the City may call the loan due.
2. If the Borrower fails to maintain required hazard insurance (including flood insurance if the property is located within a 100-year floodplain) the City may take out a “forced place” insurance policy to cover the property. City shall obtain a judgment for any amounts expended by City under this section, and shall record a judgment lien against the property. The City of Turlock is currently not designated in a flood zone.
3. Property taxes must be kept current during the term of the loan. If the Borrower fails to maintain payment of property taxes, then the City may pay the taxes current and add the balance of the tax payment plus any penalties to the balance of the loan. Wherever possible, the City encourages Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.
9-C. Owner-Occupancy
1. The Borrower shall be required to complete and submit an Annual Occupancy Certification yearly. Such report shall include the following:
a. Evidence of Borrower’s occupancy of the Property as Borrower’s principal place of residence;
b. Evidence of payment of property taxes and hazard insurance. c. Other information reasonably required by the City.
9-D Required Noticing and Restrictions on Any Changes of Title or Occupancy:
1. In all cases where there is a change in title or occupancy or use, the Borrower must notify the City in writing of any change. City and borrower will work together to ensure the property is kept in compliance with the original First Time Homebuyer program terms and conditions such that it remains available as an affordable home for low income families. These types of changes are typical when Borrowers do estate planning (adding
Section 9 – FTHB Mortgage Loan Servicing by City
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
49 a relative to title) or if a Borrower dies and property is transferred to heirs or when the property is sold or transferred as part of a business transaction.
2. Change from ownership occurs at a sale, the loan is not assumable and the loan balance is immediately due and payable in full.
3. If a transfer of the property occurs through inheritance, property can only be transferred to the spouse (as owner-occupant) who must reside at the home as the primary residence. All such changes are subject to the review and approval of the City’s Loan Committee. Any other transfer is not permissible and loan will be due in full. In the event that the heir is not a spouse, the heir will not be provided the opportunity to assume the loan. If the heir intends to occupy the property and is low income, the City will work with the heir to qualify for a new primary loan to pay off the existing loan(s) and obtain a new down payment assistance loan. If the heir is a non-income eligible family, the balance of the loan is due and payable in full. If the heir intends to act as an owner-investor, the balance of the loan is due and payable in full. All such changes are subject to the review and approval of the City’s Loan Committee.
4. Change from owner-occupant to owner-investor occurs when an owner-occupant decides to move out and rent the assisted property, or if the property is sold to an investor. If the owner converts any assisted unit from owner occupied to rental, the loan is due in full.
5. 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 City 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 any and 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.
9-E. Subordination
1. If the Borrower wishes to refinance any superior loans, the Borrower must submit a Request for Subordination to the City. Subordinations will be granted only under the following conditions:
a. “No cash-out” allowed. Cash out means there are no additional charges on the transaction above existing loan balance and escrow closing fees. b. No third party debt pay-offs or additional encumbrance on the property above traditional refinance transaction costs.
c. Should lower the families housing cost with a lower interest rate d. Refinancing for a shorter term will be permitted as long as the increase in housing costs do not exceed allowable back and front end ratios. e. Total indebtedness secured by the property may not exceed the current market value of the property. In cases of economic crisis the subordination request will be approved on a case by case basis.
Section 9 – FTHB Mortgage Loan Servicing by City
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
50 2. The City Loan Committee will review and approve or deny the Request for Subordination and, if approved, the escrow company will provide the proper subordination documentation, including a new Request for Notice of Default for the City, for execution and recordation by the Lender.
9-F. Demand/Pay-off
1. Upon receiving a Notice of Demand/Pay-off, City’s Housing Program Services Division shall calculate the amount of principal and interest due, and transmit the payoff amount to the requesting party.
2. Upon receipt of all due principal and interest, City shall reconvey the FTHB mortgage deed of trust.
9-G. Request for Notice of Default
1. The City may record a Request for Notice of Default for each lien senior to the City’s FTHB mortgage.
a. When the City’s loan is in second position behind an existing first mortgage, it is may require the title company handling the home loan purchase, to prepare and record a "Request for Notice of Default" for each senior lien in front of City’s loan. This document notifies the City of any foreclosure action by a senior lien holder listed in the notice. of a foreclosure action. The City will then have time to contact the Borrower and assist them in bringing the first loan current. The City can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved.
9-H. Foreclosure by Senior Lien Holder
1. Upon any condition of loan default: 1) non payment; 2) lack of insurance or property tax payment; 3) change in title or use without approval; 4) default on senior loans, the Lender will send out a letter to the Borrower notifying them of the default situation. If the default situation continues then the Lender may start a formal process of foreclosure.
2. When a senior lien holder starts a foreclosure process and the City is notified via a Request for Notice of Default, the City, who is the junior lien holder, may cancel the foreclosure proceedings by "reinstating" the senior lien holder. The reinstatement amount or payoff amount must be obtained by contacting the senior lien holder. This amount will include all delinquent payments, late charges and fees to date. City must confer with Borrower to determine if, upon paying the senior lien holder current, the Borrower can provide future payments. If this is the case then the City may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note. This action will be submitted to the loan committee for review and approval.
3. If the City 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 lien holder in total and restructure the debt such that the unit is made affordable to the Borrower. If
Section 9 – FTHB Mortgage Loan Servicing by City
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
51 the City does not have sufficient funds to pay the senior lien holder in full, then they may choose to cure the senior lien holder and foreclose on the property themselves. As long as there is sufficient value in the property, the City can afford to pay for the foreclosure process and pay off the senior lien holder and retain some or all of their investment.
This action will be submitted to the loan committee for review and approval.
4. If the City decides to reinstate, the senior lien holder will accept the amount to reinstate the loan up 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 City fails to reinstate the senior lien holder before five (5) days prior to the foreclosure sale date, the senior lien holder would then require a full pay off of the balance, plus costs, to cancel foreclosure. If the City determines the reinstatement and maintenance of the property not to be cost effective and allows the senior lien holder to complete foreclosure, the City's lien may be eliminated due to insufficient sales proceeds.
9-I. Recapture Provision
1. The Recapture provision applies only to HOME and NSP funds. a. When a loan is refinanced or the property is sold or the Applicant is no longer the principal resident or upon discovery of willful misrepresentation or fraud in connection with the program the money from the FTHB Program loan is instantly repayable as stipulated through the deed restriction.
b. The seller is entitled to a fair rate of return on his investment, including any documented improvements to the property.
2. The affordability period for funds depends on the amount of the City HOME and NSP investment in the property subject to recapture and the nature of the activity. If the FTHB HOME and NSP assistance is over $40,000, then the affordability period is 15 years. Payments and payoffs that meet the affordability requirements are returned as Program Income to the city. Payments and payoffs that do not meet the affordability requirements are returned as Recaptured funds to the city.
3. The City imposes recapture requirements to recapture the entire amount of the City HOME and NSP investment from the homeowner, to ensure affordability. However, when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the City HOME and NSP investment due, the city can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than City HOME and NSP funds) and any closing costs.
4. If the net proceeds are not sufficient to recapture the full City HOME and NSP investment plus enable the homeowner to recover the amount of the homeowner’s down payment and any capital improvement investment made by the owner since purchase, the City will share the net proceeds. The net proceeds are the sales price minus loan repayment (other than City HOME and NSP funds) and closing costs.
The net proceeds will be divided proportionally as set forth in the following mathematical formulas.
Section 9 – FTHB Mortgage Loan Servicing by City
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
52 City HOME and NSP investment . X Net proceeds = City HOME and NSP amount to be recaptured (City HOME and NSP investment + homeowner investment)
Homeowner investment . X Net proceeds = amount to homeowner (City HOME and NSP investment + homeowner investment)
9-J. Foreclosure by City
1. When the City is in first position on a fully amortized loan as a senior lien holder and or the end of the deferment period, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the City may consider foreclosure. City’s staff will consider the following factors before initiating foreclosure:
a. Can the loan be cured and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary? b. Can the Borrower refinance with a private lender and pay off the City? c. Can the Borrower sell the property and pay off the City? d. Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
e. 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?
2. If the balance is substantial and all of the above factors have been considered, the City 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 City to prevent foreclosure (such as, funds to bring a delinquent loan current or pay off a Deferred Payment Loan).
3. At the end of thirty days, the City will 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 lien holders. The service will advise the City 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 City informed of the progress of the foreclosure proceedings.
4. When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the City could sell the home themselves under a homebuyer program, use it for an affordable rental property, use it for transitional housing facility or other eligible use.
5. Foreclosures are subject to the review and approval of the City Council.
Section 9 – FTHB Mortgage Loan Servicing by City
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
53 9-K. Use of Third Party Agent
Portions or all of the FTHB Program loan servicing shall be performed by City or, at City’s option and shall be performed by a third party under contract with City. 9-L. Loan-to-Value Limits
1. The loan-to-value (LTV) ratio for a City loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100% (down payment assistance only) or 105% (CalHome Secondary Financing with Rehabilitation Program assistance) of the sales price plus a maximum of up to 5% of the sales price to cover closing costs. 9-M. Borrower Contribution
1. ThreeFive Thousand dollars ($53,000) shall be required of an eligible Borrower to be used towards the purchase of the property in order to receive funds under this Program.
Funds cannot be borrowed, gifted or granted by seller or any other party. Proof of required down payment must be provided when application is taken. Funds can be used for the following:
a. Additional down payment
b. Closing Costs
c. Inspection costs
2. If total funds contributed by buyer do not add up to $3,000, the difference must be paid to the City, which will be used as a principal payment to the loan. 9-N. First Mortgage Underwriting Requirements
1. In addition to the first mortgage requirements of the primary lender, the following FTHB Program requirements shall also to apply to first mortgages issued in conjunction with a FTHB mortgage:
a. Borrower shall obtain the maximum first mortgage loan with a term and interest rate from a mortgage lender consistent with affordable housing costs as defined in herein. b. b. First mortgage loans shall not include provisions for negative amortization, principal increases, adjustable rate mortgages (ARM), balloon payments, deferred interest or temporary buy downs.
c. City staff will evaluate current housing and overall debt for the Borrower, including monthly expenses, assets or cash reserves and appropriateness of assistance. dc. Front End Ratio:
1) For purposes of qualifying Borrower for a first mortgage, and as defined herein means the ratio between monthly household income and monthly housing cost, including first mortgage principal, interest, taxes and insurance.
Section 9 – FTHB Mortgage Loan Servicing by City
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
54 2) This ratio shall not exceedbe a minimum of thirty-five percent (35%). ed. Back End Ratio:
1) For purposes of qualifying Borrower for a first mortgage, and as defined herein means the ratio between monthly household income and monthly housing costs plus all payments on long-term installment debt.
2) This ratio shall not exceed forty-oneforty-six percent (3846%). fe. Credit Worthiness Criteria
1) For purposes of qualifying Borrower for a first mortgage, credit worthiness criteria shall be:
a. No late payments within the 12 months prior to 1 year from date of applying. b. No outstanding judgments or liens.
c. Outstanding collections may be paid out of closing not to be included as part of required down payment or from City funds.
d. Bankruptcy date of discharge must have been a minimum of two years from date of applicationdischarge with no additional collections. e. Foreclosure must have been a minimum of three years prior to the date of application. from date of sale.
9-O. Appraisal
1. Prior to close of escrow an appraisal must be obtained which meets the following requirements:
a. The appraisal shall be prepared by a state-licensed residential property appraiser; b. The appraisal shall use the sales of comparable properties approach to determine value; and
c. Maximum appraised home values at time of purchase shall not exceed the purchase price/value limits set forth in Section 7-F above established by the State of California Department of Housing and Community Development in the Notice of Funding Availability (NOFA) and as set forth above in this section. The maximum appraised home values will be based on the applicable NOFA and HUD. d. In the event the property is being acquired using CalHome Secondary Financing with Rehabilitation Program funds the following requirements must be met:
a. Purchase price may not exceed the “as is” value established by the licensed appraiser.
b. Necessary rehabilitation work must be noted by the appraiser.
Commented [JF4]: Updated verbiage from maximum of
35% to minimum of 35% to allow the Borrower to go over the front-end ratio as long as back-end ratio does not exceed 46%.
Commented [JF5]: Updated to maximum of 46% to allow
the Borrower more flexibility in purchasing power.
Section 9 – FTHB Mortgage Loan Servicing by City
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
55 c. Appraiser may use a single appraisal to show both values and sign off on the completed work or the appraiser may use two separate appraisals, with the second one issued after completion of the work.
d. The combined loan to after rehabilitation value cannot exceed 105% e. The after rehabilitation value may not exceed the median sales price for limits.
9-P. Cash-Out of Escrow
1. Borrowers may not receive cash out of escrow from any loan package containing City financing. Exceptions may be made with 203K loans with Loan Committee approval and proper documentation from lender. The CalHome Secondary Financing with Rehabilitation Program loan will be the first option before a 203K loan will be considered. 9-Q. Title Insurance
1. The Borrower shall provide City with an ALTA lenders title insurance policy in the amount of the City loan at Borrower’s expense.
9-R. Hazard Insurance
1. Borrower must provide and maintain fire and flood (if the property is located in a 100 year floodplain) insurance in an amount at least equal to the replacement value of the improvements.
2. City must be named as an additional loss payee on the policy.
Section 10 – Federal Regulatory Provisions
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
56 10.Federal Regulatory Provisions
(for all funding sources)
10-A.Conflict of Interest
In accordance with Federal and State regulations no person who is an employee, agent, consultant, officer, or elected official or appointed official of the City of Turlock who exercise or have exercised any functions or responsibilities with respect to CalHome, PLHA, CDBG, HOME, or NSP assisted activities under this Program, or who are in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from this activity, or have a financial interest in any contract, subcontract, or agreement with respect to this activity, or with respect to the proceeds of the this activity, either for themselves or those with whom they have business or immediate family ties, during their tenure with the City or for one year thereafter.
10-B. Fair Housing and Non-Discrimination
Implementation of the First Time Home Buyers Program will be consistent with the City’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 and federal funds on the basis of religion or religious affiliation, age, race, color, creed, gender (sex), sexual orientation, marital status, familial status (children), physical or mental disability, veteran status, national origin, or ancestry, or other arbitrary cause.
The City shall comply will all Federal and State Laws and Regulations pertaining to fair housing and equal opportunity including but not limited to the following references. -Title VI of the Civil Rights Act of 1964, As Amended (422 U.S.C. 2000d et seq.) The provisions for HUD programs may be found in 24 CFR Part 1. -Section 109 of the Housing and Community Development Act of 1974 -Age Discrimination Act of 1975, As Amended (42 U.S.C. 6101). Regulations found at 24 CFR Part 146.
-Section 504 of the Rehabilitation Act of 1973
-Americans with Disability Act (ADA) (42 U.S.C. 12131; 47 U.S.C. 155, 201, 218, and 225).
-Equal Employment Opportunity (Executive Order 11246, as amended) Implementing regulations may be found at 41 CFR Part 60.
-Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259). Regulations may be found in 24 CFR Part 107.
-Title VIII of the Civil Rights Act of 1968, As Amended by the Fair Housing Amendments Act of 1988 (The Fair Housing Act).
-Fair Housing Act (42 U.S.C. 3601-3620) Fair Housing Act implementing regulations for HUD programs may be found in 24 CFR Part 100-115.
-The California Fair Employment and Housing Act.
-The California Unruh Civil Rights Act.
10-C. Relocation of Displaced Tenants
Section 10 – Federal Regulatory Provisions
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
57 1. Eligible properties purchased with funds under this Program must be owner-occupied, sold to existing tenants or vacant for four (4) months or longer in order to avoid displacing tenant households. It is not anticipated that the implementation of this Program will result in the displacement of any person, household or family.
2. All assisted units must comply with the Code of Federal Regulations (49 CFR Part 24) "Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) of 1970, as amended" and Section 104(d). This means that any person "displaced" as a result of the property being acquired with Federal funds is eligible for relocation assistance. As all assisted units under the City's FTHB Program must be vacant, owneroccupied, or occupied by the tenant making the purchase. No one shall be displaced as a result of the FTHB Program therefore URA or Section 104(d) will not be invoked.
3. Relocation assistance under the URA is not available to existing tenants displaced as a result of a sale assisted with City funds.
Section 11 – Exhibits
City of Turlock FTHB Program Policies and Procedures Manual Updated: 9-11-2012
58 11.Exhibits
A. 24 CFR Part 5 Annual Income Inclusions and Exclusions B. Maximum Loan Amount
C. Income Limits
D. Homebuyer Education Curriculum
EXHIBIT “A”
24 CFR PART 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS
Part 5 Inclusions
This table presents the Part 5 income inclusions as stated in the Code of Federal Regulations.
General Category Statement from 24 CFR 5.609 (b) - April 1, 2008
1. Income from wages,
salaries, tips, etc.
The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services.
2. Business Income
Net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness cannot be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family.
3. Interest & Dividend
Income
Interest, dividends, and other net income of any kind from real or personal property.
Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in number 2 (above). Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD.
4. Retirement & Insurance
Income
The full amount of periodic payments received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic payment (except as provided in number 14 of Income Exclusions).
5. Unemployment &
Disability Income
Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in number 3 of Income Exclusions).
6. Welfare Assistance
Welfare Assistance payments. If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of:· (A) the amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities;
(B) the maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph is the amount resulting from one application of the percentage.
7. Alimony, Child Support,
& Gift Income
Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling.
8. Armed Forces Income All regular pay, special day and allowances of a member of the Armed Forces (except as provided in number 7 of Income Exclusions).
9. Section 8 Programs
For section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph, “financial assistance” does not include loan proceeds fro the purpose of determining income.
EXHIBIT “A”
Part 5 exclusions
This table presents the Part 5 income exclusions as stated in the Code of Federal Regulations.
General Category Statement from 24 CFR 5.609 (c) - April 1, 2008
1. Income of Children Income from employment of children (including foster children) under the age of 18 years.
2. Foster Care Payments Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone).
3. Inheritance and
Insurance Income
Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in number 5 of Income Inclusions).
4. Medical Expense
Reimbursements
Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member.
5. Income of Live-in Aides Income of a live-in aide (as defined in 24 CFR 5.403).
6. Student Financial Aid Subject to number 9 on income inclusions, the full amount of student financial assistance paid directly to the student or to the educational institution.
7. "Hostile Fire" Pay The special pay to a family member serving in the Armed Forces who is exposed to hostile fire.
8. Self-Sufficiency
Program Income
(A) Amounts received under training programs funded by HUD. (B) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set side for use under a Plan to Attain Self-Sufficiency (PASS). (C) Amounts received by a participant in other publicly assisted programs that are specifically for, or in reimbursement of, out-of-pocket expenses incurred (special equipment, clothing, transportation, childcare, etc.) and that are made solely to allow participation in a specific program.
(D) Amounts received under a resident service stipend (as defined in 24 CFR
5.609(c)(8)(iv).
(E) Incremental earnings and benefits resulting to any family member from participation in qualifying state or local employment training programs (including training not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment-training program.
9. Gifts Temporary, nonrecurring, or sporadic income (including gifts).
10. Reparation Payments Reparation payments paid by a foreign government pursuant to claims under the laws of that government by persons who were persecuted during the Nazi era.
11. Income from Full-time
Students
Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household or spouse).
12. Adoption Assistance
Payments Adoption assistance payments in excess of $480 per adopted child.
13. [Reserved]
14. Social Security & SSI
Income
Deferred periodic amounts from supplemental security income and social security benefits that are received in a lump sum amount or in prospective monthly amounts.
15. Property Tax Refunds Amounts received by the family in the form of refunds or rebates under state or local law for property taxes paid on the dwelling unit.
16. Home Care Assistance
Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep this developmentally disabled family member at home; or
17. Other Federal
Exclusions
Amounts specifically excluded by any other federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions of 24 CFR 5.609(c) apply.
EXHIBIT “B”
Maximum Loan Amounts
City of Turlock First Time Home Buyers Program
Funding
Source Maximum Loan Amount Notes
CalHome
Acquisition- 40% of Sale Price
of home with a maximum limit of
$50,000. If need exceeds
$50,000, additional funding
sources may be combined to a
maximum of $100,000.
Acquisition and RehabilitationMaximum of $60,000 must use for both acquisition and
rehabilitation.
This limit includes assistance
from single or multiple city
funding sources.
CalHome loans shall not exceed the maximum loan amount
published in the corresponding Notice of Funding
Availability (NOFA), if not published in the NOFA, or when considered with other available financing and assistance, the minimum amount necessary to:
Ensure affordable monthly housing costs as defined by the first mortgage lender (the first lender shall make the largest first loan possible given the ability of the Borrower to repay in order to keep the CalHome loan amount at the minimum amount necessary).
CDBG
20% of Sale Price of home with
a maximum limit of $25,000.
Maximum loan amount of
$100,000.
Must be combined with other
funding sources for a total of
40% of Sale Price of home with
a maximum limit of $50,000.
This limit includes assistance
from single or multiple city
funding sources.
HOME
Maximum loan amount of
$100,000.40% of Sale Price of
home with a maximum limit of
$50,000.
This limit includes assistance
from single or multiple city
funding sources.
The maximum amount of a HOME loan may not exceed the
per-unit limits established under section 221(d)(3) of the National Housing Act as annually adjusted for bedroom
size. These limits are available from the HUD Field Office. (Maximum per-unit subsidy amount and subsidy layering
92.250)
NSP
20% of Sale Price of home with
a maximum limit of $25,000. If
need exceeds $25,000,
additional funding sources may
be combined up to a maximum
of $100,000.
Can be combined with other
funding sources for a total of
40% of Sale Price of home with
a maximum limit of $50,000.
This limit includes assistance
from single or multiple city
funding sources.
PLHA Maximum loan amount of
$100,000.
These Maximum Loan Amounts are subject to change with City Council’s approval or delegation to the Housing Program Services Division’s Loan Committee or Funding Regulation changes.
Updated: 20132025
EXHIBIT “C”
CITY OF TURLOCK
Income Limits
PERCENTAGE OF MEDIAN INCOME
STANISLAUS COUNTY
Total household income cannot exceed the limits listed below, based on household size.
Limit below applies to:
CDBG, CalHome, HOME
Number in
Household
LOW/MODERATE
Not greater than 80%
1 $33,05055,200
2 $37,75063,050
3 $42,45070,950
4 $47,15078,800
5 $50,95085,150
6 $54,70091,450
7 $58,50097,750
8 $62,250104,050
HUD Dec 2013Effective June 2025
(Limits updated annually by HUD)
EXHIBIT “D”
HOMEBUYER EDUCATION CURRICULUM
The 8 hour Homebuyer Education Course is required by all homebuyers on title receiving a FTHB loan. The course must be provided by the City of Turlock or a selected agency. A copy of the certificate of completion of the homebuyer education course must be submitted to the City. The following is a sample of an 8 hour course but may vary from agency to agency.
Lesson: Are you Ready to Buy a Home?
Owning a home is not for everyone. Some people do not want the responsibility.
Some people do not want to change their spending habits in order to make monthly payments on a home.
Objectives:
-The advantages & disadvantages of owning a home.
-Setting goals
-How to budget & save
-How much you can afford to pay for a home
-The importance of good credit when you try to borrow money -How to find the right house in the right neighborhood. -How to make an offer
-The steps to getting a loan
-How you can maintain and protect your home after you move in Lesson: Budgeting and Credit
If we set realistic goals, then budgeting, that plain old everyday chore, can bring us one step closer to our dreams.
Objectives:
-Knowing where your money goes
-Setting goals
-Budgeting to meet your goals
-Cutting costs and finding ways to save
-Planning, so that unexpected expenses are less of a threat -Understanding credit and protecting your credit rating -Fixing credit problems
Lesson: Shopping for a Home
Buying a home is a complicated process. The sale of property is controlled by federal, state, and local laws. The purchase requires a legal contract between buyer and seller. Long term financing through a bank or mortgage company is standard and there are at least five different kinds of insurance involved in the average home purchase
Lesson: Getting a Mortgage
Getting a mortgage is more complicated than applying for a credit card or buying a car. This section will help you understand the steps involved in getting a mortgage loan.
Objectives:
-How a lender decided whether or not to give you a mortgage loan -Calculating ho much you can borrow
-Who makes mortgage loans
-The different types of loans that are available
-Shopping for the bet loan
-The loan application
-The loan approval process
-What to expect at closing.
Lesson: Keeping Your Home and Managing Your Finance
A home is one of the biggest investments a person will ever make. This class is designed to help you take care of your home and take care of your finances so you can continue to enjoy home ownership for many years.
Objectives:
-Making your home safe and energy efficient
-Keeping your home in good repair
-Deciding when and how to remodel
-Getting involved in the life of your neighborhood
-Protecting your investment
-Budgeting for home ownership
-Keeping records and paying taxes
-Understanding refinancing
-What to do if you cannot make your payments
Upon completion of the program a “Certificate of Completion” for the First Time Home Buyer’s Program will be provided to the borrower. Certificate will vary from agency to agency. A copy of the Certification must be provided to the City.
City Council Staff Report
July 8, 2025
From: Adrienne Werner, Development Services Director
Prepared by: Jennifer Figueroa, Housing Program Manager Agendized by: Susan E. Borrego, Interim City Manager
1. ACTION RECOMMENDED:
Resolution: Authorizing the Interim City Manager to sign up to $100,000 for first-time homebuyer loans and housing rehabilitation loans.
2. DISCUSSION OF ISSUE:
The Housing Division administers a First-Time Homebuyer Program and a Housing Rehabilitation Program to support low- and moderate-income individuals and families. The First-Time Homebuyer Program provides down payment assistance to income-eligible applicants, while the Housing Rehabilitation Program offers low-interest loans to incomequalified homeowners and eligible investors to help preserve and improve housing conditions. These programs are funded through various state and federal sources.
All Housing Division program loans are submitted to the Loan Committee for review and approval based on financial data. Once approved by the Loan Committee, the City Manager is authorized to execute all necessary documents to finalize loans of up to $100,000.
Currently, the City of Turlock (City) has an Interim City Manager. In accordance with Municipal Code 2-7-08(f), the Interim City Manager is authorized to enter into contracts up to $25,000. This limitation presents potential challenges for the administration of the FirstTime Homebuyer Program. Applicants must secure a primary loan with a locked interest rate, typically valid for only 30 days. If approval of the City’s down payment assistance is delayed, and the terms of the primary loan change, the City’s loan would need to be revised and reprocessed under the new terms. This could result in the prospective homeowner losing the opportunity to purchase their desired property.
Similar timing concerns exist with the Housing Rehabilitation Program. Once project bids are received and the lowest qualified bid is selected, the loan is presented to the Loan Committee for review and approval. Bids are generally valid for 90 days; delays in the approval process could cause the bid prices to expire, requiring the bidding process to start over, leading to increased costs and inefficiencies.
Additionally, both programs must comply with regulations protecting Personally Identifiable Information (PII). PII includes any data that can be used to identify, contact, or locate an individual, or to identify an individual in context. As a result, any loan documents presented to the City Council (Council) for consideration must exclude personal details about the applicant. Only general information, such as the loan amount and project scope, may be disclosed in a public setting.
Agenda Staff Report
7/8/2025
3. BASIS OF RECOMMENDATION:
This item before Council seeks to authorize the Interim City Manager to execute first-time homebuyer and rehabilitation loan documents for amounts up to $100,000. This delegation is necessary due to the limited turnaround time required for such projects and to ensure the protection of the applicant’s personal information, as mandated by applicable regulations.
4. FISCAL IMPACT / BUDGET AMENDMENT:
There is no fiscal impact as loans will be funded out of various Housing Division funding sources in accordance with the Fiscal Year 2025-2026 adopted budget for each fund.
5. STAFF RECOMMENDATION:
Recommend approval.
6. CITY MANAGER COMMENTS:
Recommend approval.
7. ENVIRONMENTAL DETERMINATION:
Pursuant to the California Environmental Quality Act (CEQA) Section 15378 (Projects) the action is not a project and therefore is exempt from the provisions of CEQA. All properties proposed to be purchased and/or rehabilitated under this authority shall be reviewed for compliance with the National Environmental Policy Act (NEPA).
8. ALTERNATIVES:
1. Council may choose to deny authorization for the Interim City Manager to execute agreements up to $100,000 for first-time homebuyer loans and housing rehabilitation loans. This alternative is not recommended as it could result in the loss of homeownership opportunities for first-time homebuyers if loan approvals are delayed and delays in approving housing rehabilitation loans may require projects to be rebid, leading to increased costs and inefficiencies. Additionally, due to regulations surrounding PII, the necessary applicant details cannot be presented in a public forum.
9. ATTACHMENTS:
1. Draft Resolution
BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK
IN THE MATTER OF AUTHORIZING THE }
INTERIM CITY MANGER TO SIGN UP TO } RESOLUTION NO. 2025- $100,000 FOR FIRST-TIME HOMEBUYER LOANS }
AND HOUSING REHABILITATION LOANS }
}
WHEREAS, the City of Turlock Housing Division administers a First-Time Homebuyer Program and a Rehabilitation Program for low- and moderate-income individuals and families; and
WHEREAS, all program loans are presented to the Loan Committee for review and approval; and
WHEREAS, following the approval by the Loan Committee, the City Manager is authorized to execute all necessary documents to finalize the loan up to $100,000; and WHEREAS, the City of Turlock currently has an Interim City Manager who was appointed on April 8, 2025; and
WHEREAS, per Municipal Code 2-7-08(f), the Interim City Manager is authorized to enter into contracts up to $25,000; and
WHEREAS, the Interim City Manager’s current authorization limit of $25,000 presents a challenge for the approval of first-time homebuyer loans and housing rehabilitation loans due to the turn-around time needed for first-time homebuyer loans and the timeline for contract bids for rehabilitation loans; and WHERAS, in addition, both first-time homebuyer loans and housing rehabilitation loans are subject to the protection of Personally Identifiable Information (PII), which refers to any information that can be used to identify, contact, or locate an individual, or to identify an individual in context and that information cannot be shared in a public forum and therefore, the necessary details cannot be presented to Council; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Turlock does hereby adopt a resolution authorizing the Interim City Manager to sign up to $100,000 for first-time homebuyer loans and housing rehabilitation loans.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this 8th day of July, 2025, by the following vote:
AYES:
NOES:
NOT PARTICIPATING:
ABSENT:
Resolution No. 2025-
ATTEST:
__________________________
Nichole Fiez, City Clerk,
City of Turlock, County of Stanislaus,
State of California
City Council Staff Update
July 8th, 2025
From: Nick Showalter, IT Director
Prepared by: Nick Showalter, IT Director
Agendized by: Susan E. Borrego, Interim City Manager
Subject: Website, A/V, Recruitment, Email, M365
For June 2025, the Information Technology (IT) Department has the following to report:
Website
Revize is developing a mock-up design of the new website’s homepage and subpages for review. A meeting has been scheduled with Revize in July to review the design and go over upcoming project deliverables. IT Staff are also consulting with a copywriter to get a proposal for services to update written content and navigation.
Audio/Video – City Council Chambers and Emergency Operations Center IT Staff are reviewing vendor proposals specializing in Emergency Operations Center (EOC) and City Council Chamber systems.
Recruitment
The IT Department had a newly hired IT Technician start with the department on June 23rd. An IT Analyst I candidate is currently being processed with Human Relations.
Email Security Service Renewal
IT Staff continued to work with the City’s current email security vendor to review their latest product offerings and submitted a renewal agreement for City Council approval at the June 24th, 2025 City Council Meeting.
Microsoft 365 Implementation
IT Staff received updated proposals for migrating email mailboxes to Microsoft 365 with support from a professional services provider. IT Staff have reviewed the proposal agreements and are working with legal on answering questions and receiving approval.
Fiscal Year Closing
IT Staff worked on all pending items related to purchasing to close out the fiscal year.
Completed IT Requests*
IT staff completed 121 requests for service during June 2025. *Resolved requests shown are estimated and do not include ad hoc phone and verbal requests or certain long-term projects.
Leadergov Training and Topic of the Month: Personality Assessment Through the City of Turlock’s partnership with Leadergov for professional learning and development, the IT Department scheduled two meetings through June to discuss current projects and internal support strategies to carry out the projects. IT Leadership/Management also met to discuss the department’s overall vision and are working to develop a strategic plan. In addition, IT Staff were also assigned a DISC assessment this month to complete to enhance team effectiveness.
Admin
8 Development Services
12 Finance
11 Fire
4 HR
24 IT
2 Municipal Services
33 Police
27 Completed Requests By Department June 2025
Human Relations
Department
Career Opportunities
*As of 06/27/2025
Human Relations
Department
New Hires
Account Clerk I
Promotions
Staffing Data
Full-Time Employees Part-Time Employees
397 290
687
Total
Employees
*As of 06/27/2025
Information Technology
Technician
Utilities Maintenance
Worker I
Emergency Services
Dispatcher Trainee
Utilities Maintenance
Worker I
Emergency Services
Dispatcher, Lead
Emergency Services
Dispatcher, Lead
Human Relations
Department
LeaderGov Program Update
Our Human Relations Department recently participated in our fifth session of our ongoing LeaderGov Teamwork Summit workshop series. This latest workshop,titled Personal and Professional Growth,focused on helping our team strengthen essential skills, build trust, and continue growing both as individuals and as a department.
By investing in our staff’s development, we’re better equipped to support our employees and provide the highestlevel of service to our community.
Human Relations
Department
Past Events New Events
UC Merced Career Fair
Thursday, September 25, 2025
3rd Annual Ice Cream Social in
Honor of Public Service Week
Tuesday, June 17, 2025
Turlock Unified School District
College/Career Night
Monday, August 25, 2025
DEVELOPMENT SERVICES DEPARTMENT
JUNE 2025 - Monthly Report
BUILDING
HOUSING
PLANNING
The Development
Services Department
continues to strive to
provide excellent
customer service while
ensuring the health,
safety, enhancement,
and prosperity of our
community.
2 BUILDING DIVISION
3 HOUSING DIVISION UPDATE
_____________________________________
Staff sent out over 550 letters to potential contractors inviting them to be added to Housing’s Eligible Contractors List.
Property Management and Tenant Selection policies and procedures was approved by Council on June 10, 2025.
Personally Identifiable Information (PII) policy and procedure was approved by Council on June 10, 2025.
Public Service Grants were awarded for the FY 2025-2026.
Bid process was initiated for rehabilitation on 3 City-owned properties.
HOUSING DIVISION FINANCIAL REPORT
Planning Projects
_____________________________________
An application (MAA 2025-03) was submitted for a design review of proposed improvements of the existing parking lot for Walmart located at 2111 Fulkerth Road.
The applicant for a project (MDP 2025-11) located at 201 N. Walnut Road is proposing the construction of a new 2,598-square-foot bulk feed storage building.
The project will include a fully enclosed structure for bulk feed storage, along with a one-way drive-through lane to facilitate customer pick-up. The Planning Division coordinated and hosted 2 Predevelopment meetings in June.
BUSINESS ADDRESS BUSINESS TYPE BUSINESS NAME
HOME OCCUPATION PERMIT TRUSTLINK LANGUAGE SERVICES
141 N CENTER ST ZONING CERTIFICATE/OCCUPANCY INSPECTION THE PINK DUCK
HOME OCCUPATION PERMIT VALLEY AUTOMOTIVE
HOME OCCUPATION PERMIT KM TRAILER AND TRUCK REPAIR
1862 COUNTRYSIDE DR ZONING CERTIFICATE/OCCUPANCY INSPECTION GNC 227 E MAIN ST ZONING CERTIFICATE/OCCUPANCY INSPECTION MODERN LIVING
HOME OCCUPATION PERMIT G & R APPERAL
HOME OCCUPATION PERMIT 4T Ag Pro
HOME OCCUPATION PERMIT NINOOS AUTO GLASS
HOME OCCUPATION PERMIT Holly Grace Currie, LCSW
HOME OCCUPATION PERMIT GAVIN HARRIS
HOME OCCUPATION PERMIT Spot On Spray
415 E OLIVE AVE 2 ZONING CERTIFICATE/OCCUPANCY INSPECTION EVOLVE SALON
HOME OCCUPATION PERMIT DECADES
881 N GOLDEN STATE BLVD ZONING CERTIFICATE/OCCUPANCY INSPECTION 962 W GLENWOOD AVE ZONING CERTIFICATE/OCCUPANCY INSPECTION ROLLING TIRE DEALS 986 W GLENWOOD AVE A ZONING CERTIFICATE/OCCUPANCY INSPECTION EL MIKES JR AUTO REPAIR Staff has actively been particpating in the
Leadership Academy sessions and applying
the skills and ideas into our day-to-day
work.
DEVELOPMENT
SERVICES DEPARTMENT
Development Services – Building, Housing, Planning
Current Project List – July 3, 2025
Name of Project Assigned To Project Start
Date
Anticipated
Completion Date
Current Status of Project
REAP 2.0 Grant Planning July 2025 December 2026 Additional round of funding. Application due 8/15/2025. Reviewing regulations to
identify qualifying projects.
TGM Planning January 2025 Currently with City Attorney.
Housing Element update Planning May 2021 September 2025 Planning staff and consultant currently working on letter in response to HCD’s
4/30/25 comment letter being prepared to
respond to HCD by June 3.
Zoning Ordinance Amendment – legal
nonconforming uses
Planning & City
Attorney
August 2024 December 2025 Need to finalize and coordinate with City Attorney
Zoning Ordinance Amendment –
definitions & CUPs
Planning & City
Attorney
September
2024
December 2025 Need to finalize coordinate and finalize
with City Attorney
Zoning Ordinance Amendment – digital
signs
Planning & City
Attorney
January 2025 December 2025 Researching digital signs in other jurisdictions, current case law and drafting
amendments.
Cannabis DA & Ordinance Amendments Planning & City
Attorney
September
2024
June 2026 First meeting with operators held 2/19 to
get feedback on what is working and not
working.
Promoting ADUs and permitting process Planning/Building October 2024 December 2025 Need to create brochures, video & other communications to better inform citizens
about ADUs, and promote the preapproved plans.
Omnibus - Zoning Ordinance Amendment
& Clean-up
Planning January 2025 December 2025 Reviewing and drafting the ordinance changes/clean-up that needs to be
updated.
Update Predevelopment Meeting handout Planning December 2024 August 2025 Update information and post on website and advertise on social media
Tenant Improvement Tuesdays (Rapid
Review)
Building May 2023 September 2025 Working with local architects to refine the process & criteria. Getting handout/flyer
ready. Need Communications to help get
the word out
Development Services Project List
Name of Project Assigned To Project Start
Date
Anticipated
Completion Date
Current Status of Project
Occupancy Inspection Building/Planning/Fire February 2025 December 2025 Reviewing the occupancy process to clean-up redundancy with other
departments and potentially streamline the
process for new businesses
Hire Chief Building Official Building Second interview scheduled with candidate for 7/3/25
Hire Senior Building Inspector Building October 2024 September 2025 Updating job descriptions before going back out for recruitment
Hire Senior Plans Examiner Building November 2024 September 2025 Updating job descriptions before going back out for recruitment
AB 2234 Post-entitlement information
posted to website
Building September
2024
August 2025 Working to identify information required to be on website to comply with State law
Website – department/division specific Building March 2023 All divisions/departments working with I.T. and software applications
Permitting software Building August 2023 September 2025 Scheduled for 7/8/25 Council agenda Reviewing and updating of Building
Division handouts, brochures, policies,
checklists and processes
Building August 2024 October 2025 Staff is currently reviewing and updating Re-classify staff analyst position Development
Services
July 2025 December 2025
Finalizing the transfers of High Street,
Vermont Avenue to USF
Housing February 2024 June 2025 Finalizing signatures
Substantial amendment for CDBG
$400,000 from TGM
Housing October 2024 Direction needed from CM and City
Attorney
Review and update FTHB eligibility
requirements
Housing November 2024 August 2025 On July 8th Council agenda HOME-ARP NOFA Housing January 2024 September 2026 Consultant working to draft consortium wide RFP/call for projects. Need policies
and procedures in place before.
HOME-ARP Policies & Procedures Housing October 2024 December 2025 Currently working on updating policies and procedures with consultant - Cloudburst
HOME Rehab Policies & Procedures Housing December 2025 Currently working on updating policies and procedures with consultant - Cloudburst
Transfer/sell remaining properties Housing November 2024 December 2026 Future Council agenda item.
Development Services Project List
Name of Project Assigned To Project Start
Date
Anticipated
Completion Date
Current Status of Project
RFP to non-profits or FTHB for two
Birchwood properties
Housing August 2025 1
st Quarter 2026 Future Council agenda item
FTHB (lottery) for Shadow Park, Cody,
Jason property
Housing August 2025 1
st Quarter 2026 Future Council agenda item
Finance Department Monthly Report
July 8, 2025
From: Isaac Moreno, Finance Director
Prepared by: Isaac Moreno, Finance Director
Agendized by: Susan E. Borrego, Interim City Manager
Staffing – The Finance Department is currently in the process of filling the following positions:
Utiltity Billing: 1 - Account Clerk I
Accounting: 1 – Accountant II
Procurement Policy – Currently under final review with Finance staff and consultant.
Measure A Committee – Next Measure A meeting is on July 16, 2025.
Contracts Executed by City Manager – Please see table below for the executed contracts within the month of June 2025.
Utility Billing Division Report – Please see attached memorandum.
LEADERGOV Activities:
All staff are working on developing goals and establishing benchmarks to complete task.
Department Monthly Report
July 8, 2025
Projects:
User Fee Study – Kick off meeting with Clear Source was on June 26th.
Impact Fee Study – Pending completion of infrastructure master plan updates.
Enterprise and Internal Service Funds Reserve Policies – Reviewing draft and expect to adopt in the coming months.
Community Facilities District – Formation of this new CFD is expected to be completed brought to City Council in July 2025.
Angelica Gonsalves FINANCE DEPARTMENT
FINANCIAL CUSTOMER SERVICE SUPERVISOR UTILITY BILLING
[email protected]
156 S. BROADWAY, SUITE 114 | TURLOCK, CALIFORNIA 95380 | PHONE 209-668-5570 | FAX 209-668-5565 DATE: July 1, 2025
TO: Isaac Moreno
FROM: Angelica Gonsalves
SUBJECT: June 2025 Department updates
For the month of June 2025:
Finance processed a total of 1,887 receipt payments in the office by walk in customers, 567 by mailed/drop box, and took 565 phone payments. The department answered 1,879 call during the month of June. Processed 187 utility move-in’s, and 151 move-out and exception bills. Payment agreements: 119 current and 37 past due payment agreements.
Utility billing processed and mailed 20,240 utility bills and issued 2,173 penalties.
Delinquent notices were mailed to 546 customers. 276 account were terminated on June 24, 2025 and 119 remained off at the end of the day.
Business license processed 63 new applications and closed 10 business licenses. 0 delinquent notices were mailed out to lapsed business licenses. The City of Turlock currently has 6,873 active licenses.
CITY MANAGER’S MONTHLY UPDATE
TURLOCK FIRE DEPARTMENT
June 2025
CHIEF’S
MESSAGE
T h i s m o n t h , t h e T u r l o c k F i r e D e p a r t m e n t c o n t i n u e d m a k i n g s i g n i f i c a n t p r o g r e s s o n m u l t i p l e i n i t i a t i v e s f o c u s e d o n e n h a n c i n g s e r v i c e d e l i v e r y , o p e r a t i o n a l r e a d i n e s s , a n d c o m m u n i t y e n g a g e m e n t .
F i r s t D u e R e c o r d s M a n a g e m e n t S y s t e m I m p l e m e n t a t i o n O u r t e a m h a s b e e n a c t i v e l y w o r k i n g t o i m p l e m e n t t h e n e w F i r s t D u e R e c o r d s M a n a g e m e n t S y s t e m , a m o d e r n p l a t f o r m t h a t w i l l s i g n i f i c a n t l y i m p r o v e o u r d a t a c o l l e c t i o n , r e p o r t i n g c a p a b i l i t i e s , a n d d a y - t o - d a y o p e r a t i o n a l e f f i c i e n c y .
T h i s e f f o r t h a s i n v o l v e d c l o s e c o l l a b o r a t i o n b e t w e e n T u r l o c k F i r e p e r s o n n e l a n d o u r p a r t n e r s i n I T , a d m i n i s t r a t i v e s t a f f , f i r e p r e v e n t i o n , a n d M S T P a r t n e r s . A s p a r t o f t h e i m p l e m e n t a t i o n p r o c e s s , w e ’ v e p a r t i c i p a t e d i n a o n b o a r d i n g a n d t r a i n i n g r e l a t e d t o k e y s y s t e m f e a t u r e s , i n c l u d i n g :
• C a l l r e p o r t d o c u m e n t a t i o n
• P e r s o n n e l t r a c k i n g a n d s c h e d u l i n g • A p p a r a t u s , a s s e t s , a n d i n v e n t o r y m a n a g e m e n t • P r e - f i r e p l a n n i n g a n d o c c u p a n c y d a t a c o l l e c t i o n • A n d o t h e r c o r e o p e r a t i o n a l m o d u l e s O n c e f u l l y o p e r a t i o n a l , F i r s t D u e w i l l g r e a t l y e n h a n c e o u r a b i l i t y t o c o l l e c t , o r g a n i z e , a n d a n a l y z e d a t a a c r o s s a l l a r e a s o f t h e d e p a r t m e n t , s u p p o r t i n g m o r e i n f o r m e d d e c i s i o n - m a k i n g a n d i m p r o v e d s e r v i c e d e l i v e r y .
M S T S t r a t e g i c P l a n D e v e l o p m e n t
W o r k c o n t i n u e s o n t h e M S T ( M o d e s t o - S t a n i s l a u s - T u r l o c k ) S t r a t e g i c P l a n , w i t h o n g o i n g e f f o r t s t o s t r e n g t h e n r e g i o n a l c o l l a b o r a t i o n . T h i s m o n t h , l a b o r , m a n a g e m e n t a n d a d m i n i s t r a t i v e p e r s o n n e l f r o m p a r t i c i p a t i n g a g e n c i e s c a m e t o g e t h e r t o r e v i e w a n d d i s c u s s t h e r e s u l t s o f r e c e n t s u r v e y s . T h e f e e d b a c k g a t h e r e d w i l l h e l p s h a p e t h e p l a n ' s p r i o r i t i e s a n d a c t i o n s t e p s m o v i n g f o r w a r d , e n s u r i n g a l i g n m e n t w i t h t h e n e e d s o f o u r w o r k f o r c e a n d t h e c o m m u n i t i e s w e s e r v e .
I n d e p e n d e n c e D a y P a r a d e
T u r l o c k F i r e p r o u d l y p a r t i c i p a t e d i n t h e C i t y ’ s a n n u a l I n d e p e n d e n c e D a y P a r a d e . O u r t e a m f l e w t h e A m e r i c a n f l a g f r o m T r u c k 3 1 o v e r M a i n S t r e e t — a n i n s p i r i n g t r a d i t i o n t h a t d r a w s s t r o n g c o m m u n i t y s u p p o r t . W e a l s o s h o w c a s e d E n g i n e 3 1 , o n e o f o u r t w o n e w f i r e e n g i n e s p u r c h a s e d w i t h f u n d i n g f r o m t h e v o t e r - a p p r o v e d M e a s u r e A . W e w a n t t o t h a n k C a p t a i n N a s c i m e n t o a n d h i s f a m i l y f o r a s s i s t i n g w i t h t h a t .
T h i s w a s a g r e a t o p p o r t u n i t y t o d e m o n s t r a t e t h e t a n g i b l e b e n e f i t s o f M e a s u r e A a n d t o t h a n k t h e p u b l i c f o r t h e i r o n g o i n g s u p p o r t o f p u b l i c s a f e t y i n T u r l o c k .
O P E R A T I O N S
D I V I S I O N
C A L L S B Y
D I S T R I C T
Total MVA:
27 Total EMS:
450
Total Fire (NFIRS
Series 100):
30 TOTAL CALL
VOULME:
633
Type of Inspection Total
Occupancy 5
Re-inspections 8
Solar 1
Final Fire Alarm/Final Sprinkler 3
Building Finals 4
Hydro/Visual 2
School Inspections and
STD850 3
All other Inspections 10
Green Sheet Plan Reviews 24
F I R E
P R E V E N T I O N
D I V I S I O N
F I R E W O R K S
B O O T H
I N S P E C T I O N S
2 6
F I R E W O R K S
S T O R A G E
I N S P E C T I O N S
8
City Manager's Monthly Report - July 8, 2025
CITY MANAGER'S MONTHLY REPORT
July 8, 2025
ENGINEERING◦FLEET◦MAINTENANCE◦RECREATION
REGULATORY AFFAIRS ◦ ROADS PROGRAM ◦ SRWA
TRANSIT◦UTILITIES◦WATER QUALITY CONTROL
LEADERGOV
The Municipal Services Department has begun implementing LeaderGov content with staff, incorporating its principles into our leadership development efforts by discussing the content at regular staff meetings.
This month’s topic was “Multi-Generational Success.” Staff discussed how different generations bring unique strengths and challenges to the workplace, and explored ways to foster collaboration, bridge communication gaps, and better leverage generational diversity on our teams.
MULTI-GENERATIONAL WORKPLACE SUCCESS
Fle
etServicescontinuedsupporting
Cityoperations inJunethrough
equipmentdeployment, system improvements, and seasonal readiness. A new thermoplastic line striper was received to enhance pavement marking capabilities, and the Police Department’s new armored vehicle was placed into service. Staff also began outfitting additional PD units, a labor-intensive process involving full interior disassembly to install law enforcement systems. Many surplus assets were prepared for Public Surplus listings, and Bus fleet maintenance remained a focus as extended transit hours ramp up for the Stanislaus County Fair. This month, staff held a safety meeting focused on heat illness prevention, emphasizing hydration, pacing, and early symptom recognition in high-temperature work environments. We also held hazardous materials handling training. Special thanks go to Danny Alvarez and Misty Rojas for completing detailed inventory work in their assigned areas! FLEETCity Manager's Monthly Report - July8,2025
Page2of7
In June, the Engineering Division advanced a range of capital improvement projects through design, review, and closeout stages while continuing interdepartmental coordination and consultant engagement. Final preparations were made for key state and federal submissions, including Exhibit 9D and the Request for Authorization (RFA) for Construction on CP 23-035 – Signal Coordination on Christoffersen Parkway. That package was submitted to Caltrans ahead of the June 30 deadline.
Design also progressed on CP 24-022 – Water Line Replacement on S. Center and Crane, with 60% plans reviewed and the 90% submittal expected in early July. Meanwhile, CP 24-010 – Fire Station 31 SCBA Compressor Room moved closer to construction, with bid award anticipated at the July 8 City Council meeting.
Coordination efforts included support for Transit’s facility needs and civil plan feedback to consultants. The division remains focused on meeting critical deadlines, maintaining infrastructure delivery, and aligning project activity with funding requirements.
ENGINEERING
City Manager's Monthly Report - July 8, 2025
UTILITIES
In June, the Utilities Division continued to provide essential water and sewer services through coordinated fieldwork, infrastructure repair, and interdepartmental collaboration. Crews completed emergency point repairs, responded to water quality concerns, and addressed sewer backups caused by debris and asphalt intrusion. Water leaks were repaired across multiple locations, and new meters were installed to support development activity.
Staff also assisted with sinkhole and main leak repairs tied to roadwork, performed backflow testing, reviewed plan submissions, and maintained USA marking responses. Coordination advanced with Confluence on water quality monitoring, and policy discussions continued with West Yost regarding cross-connection control. The team participated in budget presentations and vendor meetings while final tie-ins for water main and hydrant projects progressed. Staff certification milestones further supported operational strength and compliance.
In June, the Maintenance Division focused on citywide repairs, irrigation issues, and preparation for summer events and programs. Streets crews completed patching and curb work, installed new crosswalk striping on Main Street, and improved signage visibility through vegetation trimming and sign replacements. Parks and storm basin teams repaired broken irrigation components, cleared debris, and performed tree maintenance across multiple public spaces. Mowing and landscape upkeep supported seasonal needs and event readiness, while staff responded to drainage issues and storm damage at various locations.
Assessment crews continued pruning, gopher control, and irrigation work throughout key areas, including “Paseo paths”, bike trails, and city-maintained walls. Facilities staff completed cleaning, repairs, and landscape work at Central Park, the Public Safety Facility, and Animal Control, while also supporting downtown and pool maintenance. Sports complexes received attention for field preparation, irrigation, and weed control. Staff remained engaged through safety meetings and coordination efforts, with teams preparing for continued summer operations and the upcoming Stanislaus County Fair.
0 50 100 150 200 250
6/1 - 6/7
6/8 - 6/14
6/15 - 6/21
6/22 - 6/28
214
153
147
162
MAINTENANCE
POTHOLES FILLED IN JUNE
City Manager's Monthly Report - July 8, 2025 Page 4 of 7
SCAN HERE FOR
MORE INFORMATION
TURLOCK PITMAN
Self Defense Tiny Tots
Adult Summer Softball
TBall Water Aerobics
COLUMBIA TURLOCK
PITMAN
Child Adult
1,635
2,647
SUMMER BREAK CAMP
PARTICIPANTS
42 70
OTHER RECREATION PROGRAM
PARTICIPANTS
27 20
70 89
10 SWIM LESSON
PARTICIPANTS
708
566
67 RECREATION
In June, the Recreation Division rolled
out its full slate of summer programs,
including camps, aquatics, and
seasonal classes. Staff completed preseason training and launched weekday and weekend swim schedules at
multiple sites. Registration continued
for swim lessons, water aerobics, youth
sports, and school-year enrichment
programs. Staff also worked with the
registration system to improve deposit
reporting by location and began
preparations for fall programming.
Community involvement remained a
priority, with Recreation staff
supporting public events like the 3rd
Annual Hotdogs and Hotrods event,
hosted by the Turlock Senior Citizens
Group, and meeting with local partners
to strengthen programming.
Coordination with TUSD continued,
with planning underway to align
upcoming school-year services. Staff
also moved forward on agreements to
introduce new activities in yoga, boxing,
and golf. Outreach and promotion
efforts remained active throughout the
month to support participation and
access.
City Manager's Monthly Report - July 8, 2025 Page 5 of 7
SUMMER BREAK CAMP
WATER AEROBICS (JULY)
SWIM LESSONS
DISC GOLF
ASES 2025/2026
OPEN REGISTRATION
REC SWIM
PARTICIPANTS
ROADS PROGRAM
June was another active month for the Roads Program, with major construction milestones achieved on Andre Lane, Niagara Street, and Regis Street.
Full Depth Reclamation with Cement (FDR-C) was completed on Andre Lane, followed by grading, compaction, and placement of the bottom mat of hot mix asphalt. Crews also began and completed full-depth reclamation and paving on Niagra Street, including work on the intersection at Regis Street.
City Manager's Monthly Report - July 8, 2025
June was a forward-focused month for the Transit Division, with preparations underway for farefree summer events, major grant pursuits, and enhanced community outreach. Staff developed promotional content for Dump the Pump Day and began finalizing materials for July’s Free Ride Month, including Transit’s presence at the Stanislaus County Fair. A nearly $1 million federal grant application was drafted to fund on-board technology upgrades, aimed at improving service efficiency and real-time communication.
TRANSIT
STANISLAUS REGIONAL WATER
AUTHORITY (SRWA)
In June, SRWA completed preventative maintenance and system improvements to support peak operations, including cleaning sedimentation basins, adjusting filter valves, upgrading lime system components, and repairing HVAC and chlorine feed systems. Staff advanced CMMS and WIMS data tracking, prepared chemical contracts for Council review, and continued warranty reviews and license restorations. Coordination with the State Water Board and internal departments also continued, while one Senior Operator position remains open.
City Manager's Monthly Report - July 8, 2025
In June, the Water Quality Control Facility continued the recoating of Secondary Clarifier No. 4, a key capital improvement aimed at extending the lifespan and performance of critical infrastructure.
During the clarifier’s shutdown, staff conducted in-house maintenance to maximize the downtime, including valve replacements, skimmer and scraper upgrades, and additional internal repairs. These efforts support long-term reliability once the clarifier returns to service.
Looking ahead, staff spent substantial time on the annual budget, ensuring operational priorities align with future capital needs. The division is also engaged in regulatory response efforts related to a State Noncompliance enforcement action, with documentation and internal review currently in progress.
WATER QUALITY CONTROL (WQC)
ECONOMIC
DEVELOPMENT
& COMMUNICATIONS
MonthlyReport- June2025
The City of Turlock celebrated the annual
4 of July Independence Day Parade on June 27
in Downtown Turlock.
th th
1 Business Retention and Expansion (BRE)
Business Retention and Expansion (BRE) plays a vital role in economic development by prioritizing the needs of existing businesses within the City. These businesses serve as the backbone of the local economy, driving job creation and economic resilience.
Through proactive engagement and support, BRE initiatives help businesses address challenges, capitalize on growth opportunities, and remain competitive, ultimately reinforcing the City’s economic stability and reducing the likelihood of business closures.
During the months of June 2025 , City of Turlock Economic Development staff met with 14 local businesses.
*2024-2025AnnualBusinessRetention andExpansion (BRE) Visits: 190 meetings (reporting period is 7/1/2024 - June 30/2025)
MonthlyReport-June2025
Pictured Below: New Town Cafe (located at 811 W. Hawkeye Avenue, Turlock, CA 95382) Vitality Bowls (located at 2585 Geer Road, Turlock, CA 95382) Impact Prints (located at 1140 N. Front Street, Turlock, CA 95380) Quarterly Turlock Hotelier Meeting
Ribbon Cuttings and New Additions to Turlock:
Bella Forte Boutique (Ribbon Cutting at 200 W. Main Street, Turlock, CA) Sutter Health (Ribbon Cutting Inside Tower Health and Wellness Center, 1801 Colorado Ave., Turlock, CA) Curl Fitness is set to open the week of 6/30/2025 - 2710 Geer Road,, Turlock, CA 95382 2 Business Retention and Expansion (BRE)
During June 2025, City of Turlock staff and elected officials had the honor of attending and celebrating several ribbon-cutting events across the community.
MonthlyReport-June2025
Workforce development within economic development
refers to a set of strategies and activities designed to enhance the skills, knowledge, and capabilities of the local labor force to meet current and future economic and industry needs.
It is an important element of economic development
because a well-trained and adaptable workforce is vital for attracting and retaining businesses, fostering innovation, and driving economic growth.
Youth Career Services is a division of Stanislaus Workforce Development that provides assistance in:
interview preparation, paid work experience, job seeking mentoring, and more. Youth Career Services can provide assistance in various career pathways such as: technology, health care, hospitality, warehouse/logistics, manufacturing, education, culinary arts, and more! For more information visit:
https://www.stanworkforce.com/youth/
3 Workforce Development -
Talent Development
Youth Career Services - Stanislaus Workforce Development 222 S. Thor Street #8, Turlock, CA
209.556.1558 Ext. 1266
MonthlyReport-June 2025
Workforce Development Highlight:
Attraction strategies within economic development are designed to draw new businesses, industries, and investments to a region. These strategies typically involve a combination of marketing, incentives, infrastructure development, and partnership-building to create a compelling case for businesses to relocate or expand.
The WISP (Westside Industrial Specific Plan) is a key asset to our Turlock community, fostering a thriving industrial ecosystem that supports local businesses, creates jobs, and strengthens Turlock’s economy.
Through smart planning and strategic growth, this area continues to drive innovation, sustainability, and opportunity—all while reinforcing a circular economy that benefits our entire city.
We’re proud to showcase the vision behind this development and excited for what’s ahead! Turlock is also home to power retail shopping center, Monte Vista Crossings, which ranks #4 in California, and #8 nationally.
4 Attraction MonthlyReport-June 2025
Below:Retail Opportunity at 3015 N. TegnerRd. Turlock, CA For more information visit https://www.loopnet.com/Listing/N-Tegner-Rd-Turlock-CA/34890501/ Below: New 30Acre Shopping Center Development, “Turlock Marketplace” For more information visit: https://www.loopnet.com/Listing/Countryside-Dr-Turlock-CA/32628785/
5 Business Workshops
Supporting start-ups and entrepreneurs is a strategic
investment within economic development. Innovation
can drive new ideas, technologies, and create the
“Spark” of a new business to open up, resulting in job
creation, and adding more value to the local economy.
One of the ways the City of Turlock supports startups
and entrepreneurs is by offering no-cost business
workshops and implementing targeted business
development programs. Workshops are held monthly
within the City and feature a variety of topics and
strategies presented by guest speakers with expertise
in different areas of business.
Upcoming business workshops:
7/29/2025: How to Obtain Government Contracts
Register here: bit.ly/4jNhsEb
8/7/2025: Business Plan & Model Bootcamp
Register here: bit.ly/BusinessPlanBootcampTurlock
MonthlyReport-June 2025
6 The City of Turlock launched a Small Business
Development and Assistance Program which provides
strategic consulting and business development
strategies to elevate Turlock small businesses. The
businesses eligible to participate must be Turlock
businesses that have a business license with the City of Turlock, operate out of a commercial location in
Turlock, have no more than 50 employees, and not be
part of a franchise or corporate chain.
The business development program is limited to 100
businesses and will provide up to $3,500 (while funds
last) for online business ads through Google Search
Ads and Meta (Facebook/Instagram) Ads.
The $3,500 grant is disbursed in two installments of
$1,750. Participating businesses must first utilize the initial $1,750 and submit proof of expenditure. Upon
verification, the remaining $1,750 will be released to
the business.
There is currently 64 businesses in the program.
Turlock City Council allocated $325,000 in American
Rescue Plan Act (ARPA) funds for this business
development program.
City of Turlock Small Business Development & Assistance Program Business Grants
MonthlyReport-June2025
Program Update:
64 Business participating in the program
54 Businesses have received the first payment of $1,750. 15 Businesses have completed the grant program (has received total grant amount of $3,500) For more information on City of Turlock business workshops & business development programs please reach out to:
Anthony Sims - Economic Development Director - Communications Officer 209.668.6031
[email protected]
7 Business Grants
Turlock Partnership Incentive Program
The goal of this program is for new businesses to open
in vacant store fronts and create additional jobs in our community.
The program provides a one-time payment of $1,000 to
help new businesses.
For more information visit:
https://www.cityofturlock.org/_pdf/files/CityofTurlockP artnershipIncentiveProgramEligibilityRequirements.pdf
$1,000 Business Grant Available
MonthlyReport-June 2025
For more information on City of Turlock business workshops & business development programs please reach out to:
Anthony Sims - Economic Development Director - Communications Officer 209.668.6031
[email protected]
Turlock Security Enhancement Pilot Program
The Turlock Security Enhancement Pilot Program will provide an opportunity for Turlock businesses to add security
enhancements by way of Fusus’ video surveillance and realtime crime software. Fusus will enhance situational awareness for Dispatch and responding officers, giving them a real-time look at live camera feeds from participating businesses when a crime or suspicious activity occurs in the downtown district.
The City of Turlock Turlock Security Enhancement Pilot
Program will fund the first-year costs for up to 59 businesses within the city of Turlock. Businesses interested in participating in the pilot program will be assisted by Turlock Police Department to facilitate the onboarding process with Fusus.
Second year cost is $150 (participating business responsible for on-going costs after 1 year).
st
*Participating business is responsible for taxes
City of Turlock’s annual independence Day Parade
took place on Friday, June 27, 2025, in Downtown
Turlock.
From colorful floats to smiling faces lining Main Street, it was wonderful to see our community come together
to celebrate the freedoms we enjoy as a city and a
nation.
Thank you to everyone who came out, participated,
and helped bring this event to life, including our Grand Marshal, Abe Rojas. And a special thanks to the Turlock Downtown Property Owners’ Association for hosting
and organizing such a memorable evening.
8 Community News
MonthlyReport-June2025
9 Community News
In honor of Public Services Week, the City’s
Human Relations Department and the team of
Department Directors were proud to organize
and host the 3 Annual ice Cream Social.
rd
City staff came together to enjoy ice cream
sundaes and root beer floats in celebration of
Public Services Week together.
MonthlyReport-June2025
10 MonthlyReport-June 2025
Leadergov Training for Department
Through the City of Turlock’s partnership with Leadergov for professional learning and development, the Economic Development and Communications Department participates in monthly leadership sessions focused on enhancing individual and team performance. These sessions provide structured opportunities for staff to engage in strategic activities that foster professional growth, strengthen communication and collaboration, and align departmental efforts with the City’s broader organizational goals. The program also supports the development of leadership competencies, promotes a culture of continuous improvement, and reinforces the City’s commitment to high-quality public service.
Initial department activities included:
DISC Assessments
Department Goal Setting Session
Department SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) My Personal inventory Activity (describing individual work style, personality, etc.) Department Professional Development
11 Download the
City of Turlock
Mobile App
MonthlyReport-June 2025
12 MonthlyReport-June 2025
Economic Development Department - Communications Department Current Project List
Updated: 7/2/2025
1 | P a g e
Name of Project Assigned To Project Start
Date
Anticipated
Completion Date
Current Status of Project
PBID Downtown Contract –
COT and TDPOA
Economic
Development
11/2022 10/2023 Completed end of 2023
Sports Complex Economic
Development
2022 Project Paused Project temporarily paused due to economic climate.
Economic Development
Strategic Plan Update
Economic
Development
12/2023 August 2025 Kosmont Companies awarded RFP in August 2024.
SWOT Analysis provided to City Council in January
2025. Project on-going
Business Visitation Program
(Goal of 100+ Business
meetings annually)
Economic
Development
7/1/2024 6/30/2025 190 Meetings completed from 7/1/2024 – 6/30/2025 New annual reporting period starts on 7/1/2025.
Business Workshops (Goal of
12 – 15 workshops annually)
Economic
Development
7/1/2024 6/30/2025 16 completed from 7/1/2024 – 6/30/2025 New annual reporting period starts on 7/1/2025
*2 Business workshops scheduled for 2025-2026 thus
far.
2024-2025 Business Workshops Data:
Simple Accounting for Businesses (10/9/2024)
How to Get Your Business on the News 2 (10/29/2024)
2025 Small Business Funding Expo (1/29/2025)
Stan Hacks III Hackathon (4/25/2025)
Loan Preparedness Workshop (5/7/2025)
Unlocking AI’s Power for Your Business (5/8/2025)
Boost Business Efficiency with AI (5/9/2025)
9 Business Workshops hosted by Pressert Marketing
for Business Development and Assistance Program
City of Turlock Small Business
Development and Assistance
Program
Economic
Development
7/1/2024 On-going until
funds are
depleted.
Program launched in August 2024.
9 business workshops provided
Businesses eligible to receive $3,500 in grants towards social media ads (2 checks, $1,750 each).
64 Grant Applications submitted
54 businesses have been sent first check.
15 businesses have been sent the second check.
Economic Development and Comms. Dept. Project List –
7/2/25
Annual City of Turlock Job Fair Economic
Development
Annual
Event
November 13,
2024
Completed.
Event Planning Team meeting on 7/17/2025 to plan the
November 2025 City of Turlock Job Fair.
Economic Development
Attraction Efforts
Economic
Development
July 2022 On-going On-going.
High Profile Sites:
Turlock Marketplace Shopping Center (new 30-acre
development on Countryside Drive)
WISP (Westside Industrial Specific Plan)
Fresno State – Parent University
(Workforce Development –
Talent Development Initiative)
Economic
Development
10/8/2024 7/1/2025 2024-2025 Reporting Period Stats
403 Turlock residents registered for courses
153 of the registered participants achieved certificates.
Most Popular Courses:
Small Business Development: 85 registrations
Digital Literacy: 43 registrations
Financial Literacy: 56 registrations
Annual Turlock Business
Conference
Economic
Development
Feb. 2025 Mid-March 2026 On-going; Staff is planning the 2026 event.
Turlock Marketplace - Chick Fil
A Project
Economic
Development
Development
Services
Department
2023 December 2025 –
Spring of 2026
Project on-going. Staff is working with developer to
recruit additional tenants. Ground breaking event for
Chick-Fil-A and Turlock Marketplace Shopping Center
date to be determined.
COMMUNICATIONS DEPT:
City of Turlock Mobile App Econ Dev. and
Comms. Dept.
January
2024
Completed May
2024
Completed as of May 2024
“MyTurlock” is free to download in the app store.
City of Turlock Website Communications
Department and
I.T. Department
2024 2024/2025 I.T. Dept. is leading project, Communications team will assist in design and layout phase of website.
Social Media Liaisons Monthly
Meetings
Econ Dev. and
Comms. Dept.
November
2023
On-going On-going
Communications Plan Econ Dev. and
Comms. Dept.
March 2024 September 2025 On-going
Social Media – Platforms and
Goals
Econ Dev. and
Comms. Dept.
July 2022 On-going On-going
Economic Development and Comms. Dept. Project List –
7/2/25
Social Media - Instagram Econ Dev. and
Comms. Dept.
July 2022 On-going On-going
Social Media - Facebook Econ Dev. and
Comms. Dept.
July 2022 On-going On-going
Social Media - LinkedIn Econ Dev. and
Comms. Dept.
July 2022 On-going On-going
Other Communications
Initiatives:
-Community Surveys
-Attend Farmers Market
-Speaking at CVAR, Rotary,
Chamber, etc.
Econ Dev. and
Comms. Dept.
Q1 2024 On-going On-going
City of Turlock Econ Dev.
Youtube Channel
Econ Dev. and
Comms Dept.
1/15/2025 8/1/2025 On-going
Community Citizen Survey Econ Dev. and
Comms. Dept.
2/3/2025 8/15/2025 On-going: Staff is coordinating an annual citizen survey to be released, and made available to public. Targeting mid-August for survey to be launched.
Annual Business Survey Econ Dev. and
Comms. Dept.
2/3/2025 11/1/2025 Status: Ongoing project
Staff intends to gather feedback from the business
community through a survey designed to assess
current performance and identify opportunities to
improve communication, processes, and business
support programs. The goal is to launch the survey
annually and keep it open for a three-month period.
This initiative aims to strengthen engagement with
the business community and implement
improvements based on their input.
Department Communications
Projects to encourage
community engagement.
Econ Dev. and
Comms. Dept.
6/15/2025 On-going Communications staff is working with other departments to gather and create content to
advertise department programs to Turlock
community and encourage/increase community
engagement.
F I E L D &
S U P P O R T O P E R A T I O N S
On June 3 , Officer Ivan Ruiz successfully passed
his field training program and is a solo beat
officer. Congrats, Ivan!
rd
On June 13 , Officer Paul Heppner retired after
22 years of dedicated services. We wish him the
best of luck in this next, well-deserved chapter!
th
From June 23 - 25 , officers, along with
members of Turlock PAL, participated in a 3-day
sports camp held at the Turlock Sports Park. It
was a great time with even greater kids!
rd th
On June 26 , staff visited Salvation Army’s
Summer Camp and gave informative
presentations on public safety as well as answer
questions asked by children and staff.
th
Upcoming: National Night Out (NNO) on 8/5!
june 2025
M O N T H L Y C I T Y M A N A G E R ' S R E P O R T
4,767
2,249
REPORTS
TAKEN
ARRESTS TRAFFIC
STOPS
CITATIONS
ISSUED
ANIMALS ADOPTED/RETURNED TO
OWNER/TRANSPORTED TO RESCUE
587
196 228
NON-EMERGENCY
CALLS
Patrol &
Communications
Animal Services
911 CALLS
805
DOGS SEIZED
40 CATS SEIZED
27 14
BACKGROUND
LOCAL CHECKS
professional standards
Social Media Insights
182
120
CLETS
ENTRIES
WARRANTS
311
118
REPORTS
PROCESSED
REPORTS
RELEASED
S P E C I A L O P E R A T I O N S
855
Records
24 15 48
NEW CASES CLOSED CASES SUPPLEMENTAL
REPORTS
TOTAL
ACTIVE CASES
11 66
DIGITAL FORENSIC
EXAM REPORT
STREET CRIMES UNIT Detectives
67 24 35 14 1 1
TRAFFIC
STOPS
PEDESTRIAN
STOPS
SEARCHES ARRESTS
GANG FIELD
INTERVIEW
CELL PHONE WARRANTS
20 7
3 1
MISC
PERMITS
PROCESSED
ADMIN.
INVESTIGATIONS
RIDE-ALONG
APPLICATIONS
PROCESSED
SCHOOLS
PROCESSED
IG: 211,490 FB: 312,466
ACCOUNTS REACHED NEW FOLLOWS PROFILE VISITS
M O N T H L Y C I T Y M A N A G E R ' S R E P O R T : J U N E
NARCOTICS
SEIZED: 5.67g of meth
IG: 784 FB: 465 IG: 12,374 FB: 17,461
1 FIREARMS
RECOVERED Page 313 of 314
STREET CRIMES UNIT
SCU HELPED MPD & STAN SIU WITH SEARCH WARRANTS:
MODESTO PD SEARCH WARRANT:
APPROXIMATELY 10.7LBS OF SUSPECTED M30 FENTANYL PILLS, APPROXIMATELY 11.405LBS OF SUSPECTED BINDING AGENT MIXED WITH FENTANYL AND $3,611 WERE SEIZED AS ASSET FORFEITURE.
THE STAN SIU SEARCH WARRANT:
40LBS OF METHAMPHETAMINE, APPROXIMATELY 20,000 M30 PILLS, 4 KILOS OF FENTANYL, 2LBS OF HEROIN, AND 2LBS OF COCAINE ALONG WITH 6 FIREARMS AND THE SEIZURE OF $55,000 IN CASH. THE METHAMPHETAMINE ALONG WITH THE FIREARMS AND A FEW THOUSAND PILLS WERE FOUND AT THE TURLOCK LOCATIONS.
* CONTINUED *
M O N T H L Y C I T Y M A N A G E R ' S R E P O R T : J U N E