TITLE
Recommendation to adopt resolution authorizing the submission of an application to the California State Department of Housing and Community Development CalHome Program for $750,000; and authorize City Manager to execute all necessary documents upon funding approval. (Redevelopment Project Areas)
DISCUSSION
The Community Development Department requests authorization to submit an
application for $750,000 under the State Department of Housing and Community Development's CalHome Program. The CalHome Program is a valuable funding source sponsored by the State and designed to provide mortgage assistance to qualified low- income, first-time homebuyers. Funds for the CalHome Program were allocated in the Housing and Emergency Shelter Trust Fund Act of 2002 (Proposition 46). The CalHome Program provides 30-year, silent second mortgages to be used for home purchases in redevelopment project areas. When funds are repaid to the City from a
sale or an early payoff, the funds must be re-distributed as second mortgages for future homeownership developments. The City of Long Beach has previously received CalHome allocations totaling $2,500,000 from the State. These funds have been successfully used by qualified first- time homebuyers and participants of the City's Section 8 Homeownership Program. This letter was reviewed by Deputy City Attorney Everett L. Glenn on September 8, 2005, and Budget Management Officer David Wodynski on September 9,2005.
TIMING CONSIDERATIONS
City Council action is requested on September 20, 2005, as the application for CalHome Program funds is due on October 12, 2005. A resolution authorizing the submittal of this application is required in the application package.
FISCAL IMPACT
The application will be submitted in the amount of $750,000, the maximum amount allowed under the CalHome Program funding announcement. A budget adjustment will be requested as part of the Department of Financial Management's quarterly budget adjustment request if and when the funds are received.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZINGTHE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) FOR FUNDING UNDER THE CALHOME PROGRAM; THE EXECUTION OF A STANDARD
AGREEMENT AND ANY AMENDMENTS THERETO IF SELECTED FOR SUCH FUNDING; AND THE EXECUTION OF ANY ADDITIONAL DOCUMENTS NECESSARY TO PARTICIPATE IN THE CALHOME PROGRAM
Respectfully Submitted,
[Respectfully Submitted,]