For City Council Meeting December 10, 2024
TO: Honorable Mayor and City Council
APPROVAL: G. Michael Milhiser, Interim City Manager
FROM: Colby Cataldi, Director of Community Development
Title
Request the City Council to approve the Rialto Revive: HOME Rehabilitation Grant Program guidelines and application for the Federal HOME Investment Partnership Program (HOME).
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RECOMMENDATION
Approve the Rialto Revive: HOME Rehabilitation Grant Program guidelines and application.
BACKGROUND
On August 13, 2024, City Council approved Resolution 8281, approving substantial amendment No. 1 to the 2020-2025 Consolidated Plan and changes to the 2024-2025 Annual Action Plan to include HOME allocation funding, $374,469.26. City Council also approved Resolution 8282, accepting HOME funding from the U.S. Department of Housing and Urban Development (HUD) and amending the 2024-2025 fiscal year budget.
On May 18, 2024, the City was notified by HUD of their allocation of HOME funds. The City opted into the Federal HOME Investment Partnership Program as a HOME Participating Jurisdiction (PJ). As a HOME PJ entitlement community, the City received HOME fund allocations from HUD for the first time in FY 2024-2025 (July 1, 2024 - June 30, 2025).
Discussion
In response to the increasing demand from City homeowners in need of essential home repairs, City staff proposed the allocation of HOME funds to establish the Residential Rehabilitation Grant Program (Program). This initiative is designed to assist low-income homeowners who lack the financial means to undertake necessary repairs. The Program will provide funding for essential home improvements, including structural, electrical, and plumbing upgrades, ensuring that homes remain safe, habitable, and compliant with current building codes.
Of the total approved allocation of $374,469.26, the Rialto Revive: HOME Rehabilitation Grant Program will receive $280,851.94. HUD mandates that 15% be reserved for Community Housing Development Organization (CHDO) to support community-based organizations that assist in affordable housing development, that amount equals $56,170.39. And a 10% allocation is reserved for HOME administration that covers costs associated with overseeing and managing the Program, equaling $37,446.93.
Additionally, the City is required to contribute a one-time match of $125,530.74 to meet the initial participation threshold of $500,000. This City contribution ensures the program’s eligibility for full funding. The Program is expected to assist 13 households with essential repairs, providing a grant amount up to $30,000 per household for structural, electrical, and plumbing improvements. This allocation aims to address critical issues that ensure the homes meet safety standards and remain affordable.
HOME - Eligible Costs and Uses for Residential Rehabilitation for Homeownership Housing
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Hard Costs • Construction costs required to meet the rehabilitation standards and/or applicable codes, standards, and ordinances, • Essential improvements, • Energy-related improvements, • Lead-based paint hazard reduction, • Accessibility modifications for disabled persons, • Repair or replacement of major housing systems, • Repairs and general property improvements of a non-luxury nature, and • Site improvements and utility connections. |
Soft Costs • Appraisals, • Pest inspections, • Work write-ups, • Initial and job progress inspections, • Project costs incurred by the PJ that are directly related to a specific project. |
HOME - Ineligible uses or repair programs as standalone programs, such as:
• Weatherization programs,
• Emergency repair programs,
• Handicapped accessibility programs.
HOME funds can be used to pay for any of these costs, but only when they are undertaken in conjunction with the overall rehabilitation of the unit.
SUMMARY OF REQUIREMENTS
• Applicant must live in the City of Rialto and have resided in their home a minimum of one year and must not exceed income levels of 80% of area median income.
• Traditional single-family housing, condominium unit (interior only), or townhome (interior only)
• The property must serve as the applicant’s principal residence
• Existing property taxes, utility bills and homeowner’s Insurance must be current
• One application per household
• Applicants must fall within the established income guidelines
ELIGIBLE REPAIRS
Eligible repairs include health and safety issues as defined in Section 17920.3 of the California Health & Safety Code and the City of Rialto Municipal Code section 18.72. City staff will first evaluate the requested repairs to determine if they meet the criteria of code violations or deficiencies before approving the application. Some of the items eligible for the Rialto Revive: HOME Rehabilitation Grant Program are:
• Accessibility issues;
• Unsanitary plumbing conditions;
• Hazardous electrical systems;
• Roof replacements, or
• Inoperative heating, ventilation, and air conditioning (HVAC) systems.
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA).
LEGAL REVIEW
The staff report has been reviewed and approved by the City Attorney.
Attachments
1. Rialto Revive: HOME Rehabilitation Grant Program Guidelines
2. Rialto Revive: HOME Rehabilitation Grant Program Application