HomeMy WebLinkAbout _ 4.2(b)--Authorization to Apply for CalHome Program Funding � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: February 18, 2025 FROM: Steve Bade, Assistant City
ITElVI NO. 4.2(b) Manager
***APPROVED BY***
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sbade@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.2(b)--Authorization to Apply for CalHome Program Funding
Recommendation
Authorize and approve the following actions:
(1) Authorize the City Manager, or designee, to submit a grant application for the State of
California's Department of Housing and Community Development CalHome Program
for an amount not to exceed$5,000,000; and
(2) Find that applying for grant funding is not considered a project under the California
Environmental Quality Act.
Fiscal Impact
The City of Redding (City) cauld receive up to a maximum of$5 million in grant funds from the
CalHome Prograln. There is no match requirement for Cal�Iome funds. Any grant funds received
from the State will increase funding available to assist income-qualifying, first-time homebuyers
in the City. A portion of these funds would be allocated to the City to pay for staff time and
homebuyer education course costs. There is no impact to the General Fund.
Alte�native Action
The City Council may choose not to authorize submission of the grant app]ication and provide
alternate direction to staff. Not authorizing staff to submit the application may inhibit income-
quali�ed households from participating in the City's Homebuyer Program.
Background/Analysis
The California Department of Ilousing and Community Development (HCD) recently released a
Notice of Funding Availability for the CalHome Program. The intent of this program is to make
funds available to local public agencies to support the following activities: first-time homebuyer
mortgage assistance; owner-occupied rehabilitation assistance; construction, repair, or rehab of
accessory and junior accessory dwelling units; technical assistance for Shared �Iousing
Report to Redding City Council February 10,2025
Re: 4.2(b)--Authorization to Apply for CalHome Program Funding Page 2
Programs; and/or homeownership project development financing. The Housing Division would
like to focus these funds on homeownership oppartunities utilizing first-time homebuyer
mortgage assistance.
Should HCD approve the City's grant application for $5 million, the maximum amount for
mortgage assistance is up to $200,000 per household, at a minimum, 24 first-time homebuyer
loans could be completed. The CalHome application must be submitted to HCD by March 13,
2025.
Envi�^onmental Review
Applying for grant funding is not considered a project under the California Environmental
Quality Act. Any funds committed to a home purchase will be exempt under the common-sense
exemption of 15061(b)(3).
Council Priority/City Manager Goals
• Government of the 21St Century - "Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
• Economic Development- "Facilitate and become a catalyst for economic development in
Redding to create jobs, retain current businesses and attract new ones, and encourage
investinent in the community."