Report to Mayor and City Council
Tuesday, February 16, 2021
Consent
SUBJECT:
Title
CONSIDER RE-ALLOCATION OF FUNDING FOR THE HOME GRANT 16-11382 TO FUND OWNER-OCCUPIED REHABILITATION PROJECTS (CITY COUNCIL)
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I. SUMMARY
Pursuant to its December 2016 Notice of Funding Availability, the California Department of Housing and Community Development (HCD) awarded the City a HOME Investment Partnership Program (HOME) grant of $500,000 to fund an Owner-Occupied Rehabilitation Program. Approximately $200,000 of this grant remains uncommitted. Shortly after the Pandemic started, HCD added Tenant-Based Rental Assistance as an authorized expenditure of the HOME funds. On July 7, 2020, the City Council adopted Resolution No. 20-108 authorizing the reallocation of the remaining $200,000 to Tenant-Based Rental Assistance. Subsequently, the City Council dedicated $435,932 of CDBG and CDBG-CV funds to the Tenant-Based Rental Assistance Program, $339,714 of which is still available. Staff is requesting the City Council consider re-allocating $200,000 from the Tenant-Based Rental Assistance back to the Owner-Occupied Rehabilitation Program. These funds are required to be expended by July 31, 2021.
II. RECOMMENDATION
Recommendation
1. APPROVE re-allocation of HOME Funding in the amount of $200,000.
2. AUTHORIZE the City Manager to provide the correspondence to HCD requesting re-allocation of HOME funds to the Owner-Occupied Rehabilitation Program projects.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The HOME program is a Federal housing assistance program provided by the U.S. Department of Housing and Urban Development (HUD) and administered on the state level by HCD. Currently the HOME program provides a deferred loan with a maximum loan amount up to $50,000 for owner-occupied home improvement repairs. The homeowner must meet the current HUD income guidelines published April 30th, 2020. The post-rehabi...
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