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Adopt a Resolution for the 2024 Homeownership CalHome Program Award <br />December 2, 2025 <br />Page 2 <br />5 <br />4 <br />4 <br />2 <br />Over the last five years, the City has provided over $5.2 million in down payment <br />assistance loans to 49 families to purchase a home in the City. This includes $2.9 <br />million in local Inclusionary Housing funds, $1.6 million in federal Community <br />Development Block Grant funds, and $720,000 in state CalHome Program funds. The <br />City offers more down payment assistance per household than any other city in Orange <br />County. <br />In December 2024, HCD issued a Homeownership Super Notice of Funding Availability <br />(NOFA) of $143.1 million for the 2024 Homeownership CalHome Program. The 2024 <br />Homeownership CalHome Program supports homeownership programs serving low <br />income households. CalHome funds are granted to private non-profit organizations and <br />local government agencies to promote affordable homeownership. Local public entities <br />were eligible to apply for CalHome funds to operate programs within their jurisdictional <br />boundaries. <br />The City applied for this funding in March of 2025, and on October 27, 2025, notification <br />was received that the City was awarded $4,893,250 in 2024 Homeownership Super <br />NOFA, CalHome, Round 2 funding (Exhibit 1). The award notice is a Conditional Award <br />Commitment subject to the City’s approval of a resolution (Exhibit 2) and Standard <br />Agreement. <br />To accept this award, the City must submit a resolution to HCD within sixty (60) <br />calendar days of October 27, 2025. The resolution must constitute, to HCD’s <br />reasonable satisfaction, an unconditional, duly adopted, and legally binding <br />authorization of the City to accept the total amount of the Conditional Award funds, to <br />fully participate in the relevant Department program, and to be legally bound by the <br />requirements of the Department program. The resolution is required to execute a <br />Standard Agreement with HCD and the State of California. <br />The City has previously received CalHome Program funds for down payment <br />assistance. Repaid loans are appropriated into the CalHome Reuse account and are <br />utilized for HCD authorized activities. In Fiscal Year 2023-24, $360,000 in CalHome <br />Reuse funds were used to fund loans for three (3) low-income families. In Fiscal Year <br />2024-25, $360,000 in CalHome Reuse funds were used to fund loans for three (3) low- <br />income families and all reuse funds were exhausted. <br />HCD program eligibility requirements include: 1) selected homebuyers earn 80% or <br />below the Area Median Income, 2) selected homebuyers occupy the home as their <br />principal place of residence, and 3) each selected homebuyer must complete a <br />homebuyer education course. <br />With approval of the resolution (Exhibit 2) and subsequent execution of an HCD <br />standard agreement, CalHome funds will be used to provide gap financing loans of no <br />more than $120,000 per unit. Staff estimates that these new funds will assist a total of <br />37 new homeowners in the City. This is the largest grant for affordable homeownership <br />opportunities that the City has received in the last decade and will create wealth-