Item 10 - Fiscal Year 2023-24 Homeownership Initiatives

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Fiscal Year 2023-24 Homeownership Initiatives October 17, 2023 Page 5 1. Social media posts highlighting the updated program guidelines to the City's social media pages and promoting the monthly workshops; 2. Mass mailings to Santa Ana residents; and 3. Global e-mails to City employees, Santa Ana Unified School District employees, and County of Orange employees. Additional Funds for Down Payment Assistance On May 2, 2023, City Council approved $300,000 in CDBG Program funds for the Down Payment Assistance Program for FY 2023-24. In addition, the City has $410,000 remaining in Inclusionary Housing Funds that were allocated by City Council on November 2, 2021. Staff is now seeking approval to allocate an additional $2,290,000 by recognizing and appropriating $762,979.40 in CalHome Program Re -use Funds and $1,527,020.60 in Inclusionary Housing Funds. This will provide a total of $3 million in funds for the Down Payment Assistance Program. Regarding the CalHome Program Re -use Funds, in the past the City received funding from the State of California Department of Housing and Community Development (HCD) CalHome Program to fund a CalHome Rehabilitation and Manufactured Home Replacement Program. Under the CalHome Rehabilitation and Manufactured Home Replacement Program, the funds were used to offer deferred payment, thirty-year (30- year) rehabilitation loans with zero percent (0%) interest rates to low-income owner occupants of manufactured homes and single-family homes. Over the years, CalHome loan payoffs totaling $762,979.40 have been received and deposited into the CalHome Re -use account including interest. The State of California HCD recently approved the City to begin using these remaining funds for the Down Payment Assistance Program. In order to maximize the City's investment in the Down Payment Assistance Program, staff is recommending to allocate these CalHome Program Re -Use Funds together with $1,527,020.60 in Inclusionary Housing funds. In total, the $7.7 million RFP for Affordable Homeownership Opportunities and additional $2.3 million for the Down Payment Assistance Program will make available over $10 million for homeownership, which is the largest one-time investment in affordable homeownership opportunities in the City of Santa Ana. FISCAL IMPACT Approval of the appropriation adjustments will recognize $762,979.40 in the CalHome Program Re -use funds Prior Year Carry -Forward (account no. 14318002-50001) and $1,527,020.60 in the Inclusionary Housing funds Prior Year Carry Forward (account no. 41718002-50001). Any unspent funds at the end of the current fiscal year will be included in future -year carry -forward for City Council consideration. The expenditure plan is as follows: