A new opportunity for first-time homebuyers is on the horizon in Soledad, as the City Council discussed applying for a $500,000 grant from the California Department of Housing and Community Development. This funding is part of a special Notice of Funding Availability (NOFA) aimed at smaller jurisdictions with populations under 50,000, and it could significantly impact low and moderate-income households in the area.

The proposed program will focus on assisting families earning up to 80% of the area median income, with the goal of helping 2 to 3 households secure their first homes. The funding can be used for various activities, including down payment assistance and owner-occupied rehabilitation. However, the council noted that the maximum assistance per family is capped at $309,000, which may still fall short given the local housing market, where the maximum purchase price for eligible properties is set at $618,000.

Council members expressed optimism about the program's potential to foster homeownership in the community. They emphasized the importance of establishing a successful foundation now, which could lead to increased funding opportunities in the future. The council plans to finalize the application by May 22, 2025, with hopes of receiving funding announcements by July 7, 2025.

The urgency of the program was highlighted, as the city must implement the funding within 36 months of receiving it. The council is also working on adopting guidelines that align with the funding requirements to maximize their scoring in the application process.

Overall, this initiative represents a significant step towards addressing housing affordability in Soledad, with the potential to empower families and strengthen the community.