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<br />CalHOme Rehabilitation and <br />Replacement Program <br />April 4, 2005 <br />Page 2 <br /> <br />By a vote of 6: 0 (Turner absent) at its Regular Meeting of March 15, <br />2005. <br /> <br />DISCUSSION <br /> <br />On September 7, 2004, the City Council approved the submission of an <br />application for funding from the California Department of Housing and <br />Community Development CalHome Program. The City has been notified that <br />an award of $500,000 has been allocated for this program. Under the <br />CalHome Rehabilitation and Replacement Program (Exhibit 1), these funds <br />will be used to offer deferred payment, thirty-year rehabilitation loans <br />with zero percent interest rates to low income owner occupants of <br />manufactured homes and single family homes. All homes must be located <br />in CDBG eligible census tracts (Exhibit 2). Maximum CalHome <br />rehabilitation loan amounts will be $10,000 for manufactured homes and <br />$50,000 for single- family homes. Owners may also be eligible for <br />addi tional rehabilitation assistance through existing programs offered <br />by the City and the Agency. <br /> <br />In cases where it is financially infeasible to rehabilitate the home, <br />manufactured home owners may be eligible for CalHome replacement loans <br />totaling no more than $50,000. CalHome replacement loan funds will be <br />offered in the form of deferred thirty-year loans with zero percent <br />interest rates. Up to $20,000 in Tax Increment Housing Set-Aside funds <br />may also be combined with the CalHome funds. The Agency replacement <br />loans will be amortized over thirty years. Consistent with our existing <br />programs, the interest rates will be based on household income and will <br />be 250 or 300 basis points below the 11th District Cost of Funds Index <br />published by the Federal Home Loan Bank, with a minimum interest rate of <br />one percent for very low-income households and one-and-one half percent <br />for low-income households. As an example, based on the index as of <br />March 1, 2005, the minimum interest rate would apply. <br /> <br />ENVIRONMENTAL IMPACT <br /> <br />In accordance with the California Environmental Quality Act, the <br />proposed proj ect is exempt from further review. Categorical Exemption <br />ER No. 2005-26 will be filed for this project. <br /> <br />JT208-2 <br />