For City Council Meeting [February 13, 2024]
TO: Honorable Mayor and City Council
FROM: David Carmany, City Manager
AUTHOR: Colby Cataldi, Director of Community Development
Title
Request City Council to: (1) Adopt Resolution No. 8186 to revise and replace Resolution No. 8048 authorizing an application for CalHome Program Funds; authorizing the City Manager to enter into, execute, and deliver all other documents required or deemed necessary or appropriate to evidence and secure the CalHome grant funds; and authorizing Avant-Garde, Inc. to act as the City’s Administrative Subcontractor.
Body
BACKGROUND
On January 6, 2023, the California Department of Housing and Community Development (HCD) announced the release of approximately $135 million in funding for the CalHome Program through the 2023 Homeownership Super Notice of Funding Availability (NOFA). This Homeownership Super NOFA was issued to distribute funds for the CalHome Program which supports homeownership programs aimed at lower and very low-income households to increase homeownership, encourage neighborhood revitalization and sustainable development, and maximize use of existing homes.
On February 28, 2023, the City submitted an application in response to the 2023 Homeownership Super NOFA. The application requested $4,200,000 of CalHome funds to provide loans for Owner-Occupied Rehabilitation Assistance including loans of up to $100,000 to approximately 25 homeowners and loans of up to $20,000 to approximately 50 mobile-homeowners for rehabilitation of currently occupied residences.
As part of the application requirements, a resolution needed to be approved by the local jurisdiction’s governing body authorizing submission of the application and execution of a Standard Agreement if awarded funds; and a contract needed to be executed with the proposed Administrative Subcontractor.
To satisfy these requirements, on February 14, 2023 the City Council adopted Resolution No. 8048.
On November 2, 2023, HCD informed the City of its conditional CalHome Program award in the amount of $1,200,000 to be used for Owner-Occupied Rehabilitation (OOR) of 50 mobile-homes.
The OOR program for mobile-homeowners qualified to apply within the “Manufactured Homes” funding target set-aside of the Homeownership Super NOFA. This set-aside of $30 million had separate thresholds to be met which resulted in a smaller pool of applicants, thus increasing the chance for a successful award. Twenty-four projects applied within the “Manufactured Homes” funding target set-aside and the City of Rialto was among the 21 successful applicants awarded funds.
The OOR program for homeowners did not qualify for any of the designated funding target set-asides and was therefore included in the general “Southern Region” application pool. The “Southern Region” had more applicants competing for a limited amount of funds available, approximately $31 million. After ranking applications based on score, only 13 of 43 were successfully awarded before the available funds were depleted. The City of Rialto was not selected for funding under this category.
On January 18, 2024, HCD informed City staff that HCD’s attorney identified portions of Resolution No. 8048 that required revision prior to HCD finalizing and executing a Standard Agreement with the City.
ANALYSIS/DISCUSSION
The conditional award may only be accepted by satisfying HCD’s Terms and Conditions of Conditional Award which includes timely delivery of Authorization and Organization Documents including a duly adopted authorizing resolution.
To satisfy HCD’s Terms and Conditions of Conditional Award, City staff is recommending the City of Rialto adopt Resolution No. 8186 to revise and replace Resolution No. 8048. The requested revisions include: updating the reference to the CalHome Program guidelines to specifically say “CalHome Program Final Guidelines (2022)”; adding a recital which details the specific statutes related to the CalHome Program; and updating a reference to the State of California to instead reference the California Department of Housing and Community Development. These revisions have no significant impact on the content and purpose of Resolution No. 8048. Adopting Resolution No. 8186 will satisfy HCD’s Terms and Conditions of Conditional Award, allowing for the execution of a Standard Agreement and subsequently the commencement of the City’s owner-occupied rehabilitation assistance to mobile-homeowners.
ENVIRONMENTAL IMPACT
The proposed action does not constitute a “project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(b) of the State CEQA Guidelines, a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
Complies with the following Rialto General Plan Guiding Principle:
Our Government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney has reviewed and recommends approval of this staff report and resolution.
FINANCIAL IMPACT
There is no financial impact associated with this action at this time. With the adopted and updated resolution, city staff can move forward with the full contract and agreement to receive the funds and modify the city’s general fund budget.
RECOMMENDATION
Staff recommends that the City Council:
(1) Adopt a Resolution to revise and replace Resolution No. 8048 to submit an application for CalHome funding; authorize the City Manager to enter into, execute, and deliver all other documents required or deemed necessary or appropriate to evidence and secure the CalHome grant funds; and authorize Avant-Garde, Inc. to act as the City’s Administrative Subcontractor.