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TO: BOARD OF SUPERVISORS
FROM: Anthony A. Dehaesus �"^'-Contra
Director of Planning ('Costa
DATE: May 14, 1984 County
Authorizing Submittal of an Application for the California Homeownership
SUBJECT: Assistance Program, and the Execution of a Standard Agreement and Documents
Related Thereto
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) $ BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
WHEREAS, the County of Contra Costa hereinafter referred to as "County" is
authorized to apply to the Department of Housing and Community Development for
funding under the California Homeownership Assistance Program; and
WHEREAS, pursuant to Section 50775, et seq, of the California Health and
Safety Code, the California Department of Housing and Community Development
(hereinafter referred to as "State") is authorized to provide funds for the California
Homeownership Assistance Program; and
WHEREAS, the County of Contra Costa, a local public agency organized under
the statutes of the State of California, is eligible to receive said funds; and
WHEREAS, the Department of Housing and Community Development may
award the County of Contra Costa a conditional funding commitment under the California
Homeownership Assistance Program.
NOW, THEREFORE, BE IT ORDERED that the submittal of an application for
the California Homeownership Assistance Program is authorized, and that the County of
Contra Costa is hereby authorized to enter into an agreement with the State to accept a
financial commitment in an amount not to exceed g$200,000 for purposes of providing
homeownership assistance loans for new housing; and
BE IT FURTHER ORDERED that the Chairman, County Administrator, or
Director of Planning is hereby authorized to execute the Standard Agreement and any
related documents on behalf of the County of Contra Costa.
BACKGROUND
The California Homeownership Assistance Program (CHAP) provides equity sharing second
mortgage loans to assist lower income households in purchasing homes. The CHAP
program currently has available $1.6 million in loan commitments available for projects.
A Request for Proposal recently issued by the State Department of Housing and
Community Development invites applications from local government to assist in projects
where households would be purchasing manufactured housing. Nova Housing Systems, Inc.,
a Richmond based developer, desires to participate in the program for manufactured
homes they would be located on scattered sites within the unincorporated North Richmond
community. The attached application requests a loan commitm t of $200,000 for the
North Richmond sites.
CONTINUED ON ATTACHMENT:YES SIGNATU
i
RECOMMENDATION OF COUNTY ADMINISTRATOR RE MM DATI F BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
. t.
VOTE OF SUPERVISORS
UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVIS S ON THE DATE SHOWN.
County Administrator l�
CC: Planning Department ATTESTED
Auditor-Controller J . OLSs4N, COUN Y CLERK
Housing & Community Development AND EX OFFICIO CLERK OF THE BOARD
00 1
M382/7-83 ZG BY ��� DEPUTY
j
Board of Supervisors
Page Two
May 14, 1984
Under the CHAP program, the State becomes a partner with a homebuyer who cannot
otherwise afford to buy a home. For example, a lower income household can afford a
$50,000 house with a $3,000 downpayment and a $47,000 mortgage, but the homes in the
community sell for $60,000. In order to get the price to the buyer down to the level they
can afford, i.e., $50,000, the State would effectively purchase a $10,000 share in that
home. The State would have a one-sixth share in the home. Upon sale of the home the
State would share in the proceeds of the sale in porportion .to their interest in the
property.
.Administrative responsibilities of the County under the CHAP program are practically
non-existent. The County would agree to make provision for homeownership counseling to
the buyers. The County already has fair housing agencies under contract to provide such
counseling. In addition, Nova Housing Systems desires to be actively involved in •the
provisions of the counseling. The County would not be involved in the preparation or
approval of loans and loan documents. Required servicing of the loans would be a function
of the lender.
The submittal of a successful application for the CHAP program will allow the County to
further address its housing needs and Housing Element goals. Further, the assistance for
homeownership would provide a valuable stablizing influence to the North Richmond
community, and complement other activities designed to improve the quality of life in the
community.
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