REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHILIP SKEI, Assistant Director
Planning and Development Department
BY: JENNIFER DAVIS, Senior Management Analyst
Housing Finance Division
SUBJECT
Title
***RESOLUTION - Authorizing the submission of a grant application and acceptance of funds from the California Department of Housing and Community Development’s 2024 Homeownership Super NOFA for funding under the CalHome Program for Homebuyer Mortgage Assistance, and authorizing the City Manager or designee to sign all necessary implementing documents (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends approval of a Resolution authorizing the submission of a grant application to and acceptance of grant funds from the California Department of Housing and Community Development’s 2024 Homeownership Super NOFA for funding under the CalHome Program for use as Homebuyer Mortgage Assistance and authorizing the City Manager or designee to sign all necessary implementing documents.
EXECUTIVE SUMMARY
On December 12, 2024, the California Department of Housing and Community Development (HCD) issued a 2024 Homeownership Super NOFA, offering approximately $176.8 million in total grant funds, with $143.1 million specifically allocated for the CalHome Program. As an eligible Local Public Entity, the City of Fresno may apply for up to $5 million in CalHome Program funds to support homeownership programs for lower and very low-income households. If awarded, the City will use the funds to provide mortgage assistance loans of up to $100,000 per household for eligible first-time homebuyers whose income does not exceed 80% of the area median income for Fresno County.
BACKGROUND
The California Department of Housing and Community Development (HCD), under California Assembly Bill 434 (AB 434) (Chapter 192, Statutes of 2020), issued the 2024 Homeownership Super Notice of Funding Availability (HOSN), on December 12, 2024. The HOSN provides approximately $176.8 million in total funding, with $143.1 million designated for the CalHome Program. HCD offers funding to a Local Public Entity, Local Public Agency, Tribal Entity, and Nonprofit Corporation, under the CalHome Program Final Guidelines, as established by Chapter 6 (commencing with Section 50650) of Part 2 of Division 31 of the Health and Safety Code. The CalHome Program supports homeownership programs aimed at lower and very low-income households through grants to local public agencies and nonprofit organizations for direct first-time homeowner assistance.
The City of Fresno (City) as an eligible Local Public Entity, intends to apply for $5 million in CalHome Program funds to support homeownership programs for lower and very low-income households. If awarded, the City will provide up to $100,000 in mortgage assistance loans to approximately 50 eligible first-time homebuyers whose income does not exceed 80% of the area median income for Fresno County. The CalHome loan will be provided as a second mortgage loan at zero percent interest, secured with a Deed of Trust recorded on the property, and subordinated to the primary mortgage. All homebuyers will attend a City-approved counseling program covering finance, maintenance, and consumer awareness to ensure a successful and sustainable homeownership experience.
Authorizing the submission of the grant application and acceptance of up to $5 million in CalHome Program funds will enable the City to assist approximately 50 eligible households with homebuyer assistance, moving the City closer to achieving the housing goals outlined in the City’s Housing Element and the Mayor’s “One Fresno Housing Strategy.” These efforts will address critical housing needs, promote economic development, and enhance equity and sustainable homeownership in underserved communities.
If awarded, the CalHome Program funds will help the City’s objectives to increase homeownership, encourage neighborhood revitalization, maximize the use of existing homes, foster community stability, and promote equity in homeownership.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378(b)(4)-(5) this item does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act requirements. The proposed action to apply for, accept, and administer grants are the “creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment” as well as “organizational or administrative activities of government which will not result in direct or indirect physical changes to the environment.”
LOCAL PREFERENCE
Local preference is not applicable as this resolution and associated acceptance of funds do not involve a bid or award of a construction or services contract.
FISCAL IMPACT
There is no impact on the City’s General Fund as a result of this action. If awarded, all funds will be included in the Planning and Development FY2026 budget. No local match is required for this award.
Attachment:
Resolution to Apply 2024 CalHome Award