Report to Mayor and City Council
Tuesday, March 20, 2018
Consent
SUBJECT:
Title
CONSIDER RESOLUTION 18-037 AMENDING THE FISCAL YEAR 2017-18 BUDGET IN THE HOME INVESTMENT PARTNERSHIP FUND IN THE AMOUNT OF $500,000 RELATED TO HOME PROGRAM AND CONSIDER HOME PROGRAM GUIDELINES TO SET THE FUNDING CAP AMOUNT NOT TO EXCEED $50,000 PER SINGLE-FAMILY UNIT AND TO REDUCE THE SIMPLE INTEREST RATE TERM FROM A THREE PERCENT INTEREST RATE TO A ZERO PERCENT INTEREST RATE (CITY COUNCIL)
Body
I. SUMMARY
On July 13, 2017 the California Department of Housing and Community Development (HCD) awarded the City of Carson $500,000 pursuant to its 2016 application for HOME Investment Partnerships (HOME) funding for an Owner-Occupied Rehabilitation (OOR) program.
This program is different from the City's CDBG-funded Neighborhood Pride Program (NPP), which provides grants or loans to low-income homeowners throughout the City. HOME is targeted at low-income homeowners, but the additional requirement is that the home itself must also not exceed a maximum resale value, which limits it to certain neighborhoods in Carson, generally on the south end and east end of the city.
A standard agreement has been executed between the City and HCD for the program. Staff has prepared the documentation to obtain approval from HCD to proceed. In analyzing the effectiveness of prior HOME programs run by the City, and based on the experience of other communities with similar programs, there are several recommended changes from prior HOME programs, for the reasons described below.
II. RECOMMENDATION
Recommendation
1. APPROVE the following HOME program guidelines:
a. Set funding cap at a not to exceed amount of $50,000 per single-family unit; and
b. Establish the interest rate for the HOME loans at zero percent.
2. WAIVE FURTHER READING AND ADOPT RESOLUTION NO. 18-037, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2017-18 BUDGET IN THE HOME INVESTMENT PARTNERSHIP FUND IN TH...
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