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Home My WebLink AboutCALIFORNIA, STATE OF (DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT) I'ICUPANCE KT RE0.1)IfirD Return FULLY EXECUTED 4UCRIK l`0AY PFGC'HB Copy to City Clerk, M-30 A-2025-216-01 CI I Y CLERK G�.T�: JUL i F02fi CALHOME PROGRAM REUSE ACCOUNT and LOAN SERVICING MONITORING AGREEMENT G o p Y 0•.CDR (1) Standard Agreement#25-CalHome- 18740 A.Sa%LAo'n(D-4) THIS CALHOME PROGRAM REUSE ACCOUNT(hereinafter the "Agreement"), May 28, 2026 for reference purposes only, is made and entered into by and between the Department of Housing and Community Development, a public agency of the State of California(the "Department"), and the City of Santa Ana ("Recipient"). RECITALS A. The Department and Recipient have entered into Standard Agreement 25-CalHome- 18740 dated,April 21,2026 (the "Standard Agreement"),whereby the Department has made a conditional commitment of$4,893,250.00(the"Commitment")from the Department's CalHome Program (the"Program")to assist Recipient in the operation of First Time Homebuyer Program. The Programs are established by Chapter 6 (commencing with Section 50650 Part 2 of Division 31 of the Health and Safety Code,the"CalHome Statutes") and further governed by Guidelines issued by the Department as further described in the Standard Agreement(the "Guidelines"). B. In executing the Standard Agreement,Recipient has agreed to abide by the provisions of the CalHome Statutes and the Guidelines. The Guidelines provide that all revenue generated from use of CalHome funds, including loan repayments if any,are to be deposited into a local reuse account and used as provided for in the Guidelines and as described in a local reuse account plan approved by the Department. The Standard Agreement contains additional requirements pertaining to the reuse account and plan,and specifically requires Recipient to enter into this Agreement. The Department has reviewed and approved Recipient's reuse account plan and loan servicing plan submitted to the Department, which are incorporated herein by reference. Any changes to either of these plans must be submitted to the Department for review and approval prior to implementation. C. In executing the Standard Agreement,Recipient also has agreed to service loans made with Program funds in accordance with a loan-servicing plan approved by the Department. D. The purpose of this Agreement is to set forth Recipient's obligations with respect to long- term loan servicing and the administration of the local reuse account. A separate agreement is necessary because Recipient's obligations for loan servicing and administration of its local reuse account extend beyond the term of the Standard Agreement. NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Recipient's execution of this Agreement is given in further consideration for receipt of the Commitment. 2. The term of this Agreement shall commence on the Date of the Standard Agreement April 21, 2026 and remain in full force and effect for a period of twenty (20) years unless terminated earlier by the Department. CalHome Monitoring Agreement Revised: 5/26 3. Recipient shall administer its local reuse account in conformance with the reuse account plan approved by the Department. The reuse account plan approved by the Department shall not be modified or amended except by the express written consent of the Recipient and Department. 4. Recipient shall monitor and service loans made with Program funds or funds from the local reuse account(hereinafter collectively referred to as "CalHome loans") in conformance with the loan servicing plan approved by the Department. The loan servicing plan approved by the Department shall not be modified or amended except by the express written consent of the Recipient and Department. 5. Recipient shall permit the Department, its employees, agents, or designees, upon reasonable written notice and at reasonable times,to enter Recipient's preusremises and inspect all records pertaining to the local reuse account and Recipient's servicing of CalHome loans. The Department may request any other information that it deems necessary to monitor compliance with requirements set forth in this Agreement. Recipient shall promptly provide such information following the Department's written request. 6. Recipient shall file an annual report with the Department for the period July 1 through June 30. This report shall be submitted no later than July 31 of each year. The report shall provide information on the dollar amount of deposits to and withdrawals from the local reuse account, and a description of the uses of funds withdrawn, including but not limited to number and dollar amounts of loans made, expenses of providing homebuyer education, and dollar amount of fees for loan servicing, loan processing or loan activity. The annual report shall also provide information on Recipient's loan servicing activities during the year including, but not limited to costs of loan servicing, loans in default, remedial actions undertaken, foreclosures, and bankruptcies. 7. In the event of a breach or violation of the provisions of this Agreement by Recipient, the Department shall give written notice to the Recipient thereof by certified mail or any express delivery service with a delivery receipt addressed to the Recipient at the address stated in this Agreement. If the breach or violation is not cured to the satisfaction of the Department within the time period specified in the notice,which shall not be fewer than thirty(30) days, the Department may declare a default and may seek legal remedies including specific performance of this Agreement, declaratory, and/or injunctive relief, or other remedies as may be available at law or equity. 8. Recipient agrees and acknowledges that failure to cure a violation to the satisfaction of the Department within the time allotted shall constitute grounds for denial of eligibility for future CalHome funding. Lack of organizational capacity shall constitute grounds under any other program administered by the Department for making a determination that the Recipient lacks the capacity to administer the program funds being applied for. 9. In the event that the breach or violation involves charges to individual homebuyers in excess of those permitted under the Standard Agreement or Guidelines, the Department may demand, and seek as an additional remedy,the return of such excess charges to the affected households. CalHome Monitoring Agreement Revised: 5/26 10. The remedies of the Department hereunder are cumulative, and the exercise of one or more of such remedies shall not be deemed an election of remedies and shall not preclude the exercise by the Department of any one or more of its other remedies. In witness heretofore,the parties hereby execute and enter into this CalHome Program Reuse Account and Loan Servicing Monitoring Agreement as of the date set forth above and agree to be bound hereby: THE DEPARTMENT RECIPIENT Department of Housing and City of Santa Ana Community Development, a public agency of the State of California By: By: Daniel Robertson fllvaro Nunez Grant Management Representative City Manager Department of Housing and RECOMMENDED FOR APPROVAL: Community Development Division of Financial Assistance 651 Bannon Street Sacramento, CA 95811 By: Michael Garcia Executive Director Community Development Agency APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: ATTEST: Andrea N. Garcia Sr. Assistant City Attorney + ` lennfler C:i",,CI �.. CalHome Monitoring Agreement Revised: 5/26