For City Council Meeting August 12, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Christina Taylor, Interim Director of Community Development
Title
Request the City Council to: (1) Approve the Guidelines, Application, and Program Documents, for Blueprint for Better Living: Mobile Home Repair Loan Program; (2) Approve Resolution 8389, Accepting CalHome Funding and Amending the Fiscal Year 2025-2026 Budget; and, (3) Authorize the City Manager or their designee to execute all necessary documents related to the Program.
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RECOMMENDATION
Staff recommends that the City Council
1) Approve the Guidelines, Application, and Program Documents, for Blueprint for Better Living: Mobile Home Repair Loan Program;
2) Approve a Resolution to accept the funding and amend the FY25-26 budget; and,
3) Authorize the City Manager or their designee to execute all necessary documents related to the Program.
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 low- and very low-income households to increase homeownership, encourage neighborhood revitalization and sustainable development, and maximize use of existing homes.
On February 14, 2023, the City Council adopted Resolution No. 8048 to authorize the City’s NOFA application submission and execution of a Standard Agreement if awarded funds.
On February 28, 2023, the City of Rialto (City) submitted a NOFA application. The City’s application requested $4,200,000 of CalHome funds for owner-occupied rehabilitation assistance of up to $100,000 loans for 25 single-family homeowners and up to $20,000 loans for 50 mobile homeowners.
On November 2, 2023, HCD informed the City of its conditional CalHome Program award in the amount of $1,200,000 for Owner-Occupied Rehabilitation of 50 mobile-homes (manufactured homes) for loans of up to $20,000 and $200,000 for Activity Delivery Fees.
On February 13, 2024, the City Council adopted Resolution No. 8186, authorizing the City Manager to enter into, execute, and deliver the Standard Agreement.
On July 25, 2024, the Interim City Manager executed the CalHome Standard Agreement on behalf of the City.
ANALYSIS/DISCUSSION
Financial assistance consists of loans up to twenty thousand dollars ($20,000), which will be structured as deferred payment loans or secured forgivable loans, depending on the type of manufactured housing and eligibility criteria. No more than 10% of the available funds in a given fiscal year shall be allocated for financial assistance through secured forgivable loans. The loans will fund necessary repairs, including addressing health and safety hazards, correcting code violations, and updating homes to comply with current building codes. Covered repairs may include structural, electrical, plumbing, and roofing work, as well as other critical systems essential for long-term habitability, even if they are not immediate health or safety concerns. It is anticipated that the Program will assist approximately fifty (50) households. The Program will be administered on a first-come, first-served basis. The following table is the qualifying household income limits as determined by the U.S. Department of Housing and Urban Development (HUD).
City Staff will launch the Program beginning in August 2025, and it will be administered until the funds have been expended. City Staff will market the Program via the City’s webpage and send Program information directly to mobile home parks located in the City.
ENVIRONMENTAL IMPACT
The request does not constitute a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA) and will not have a significant impact to the environment.
GENERAL PLAN CONSISTENCY
The City’s General Plan includes goals and objectives aimed at preserving residential neighborhoods. The Program aligns with the following goal and policy:
Goal 2-8: Preserve and improve established residential neighborhoods in Rialto.
Policy 2-8.2: Improve neighborhood housing maintenance and home improvements through code enforcement and financial assistance for home rehabilitation.
LEGAL REVIEW
The City Attorney's Office has reviewed the resolution and approved it as to form.
FINANCIAL IMPACT
There is no financial impact on the General Fund. All costs associated with the Program will be covered by the CalHome grant funds. Grant funds have been budgeted for FY2025-2026 in the following accounts:
|
Account Number |
Description |
Amount |
|
22381840-47833 |
Program Income |
($1,000,000) |
|
22381840-52011 |
Program Expense |
$1,000,000 |
|
22381850-52011 |
Administrative Expense |
$200,000 |
ATTACHMENTS
A. Program Guidelines
B. OOR Deed of Trust
C. OOR Promissory Note
D. OOR Promissory Note and Security Agreement
E. Program Application
F. Program Loan Acceptance and Contractor Agreement
G. Resolution