CalHFA board approves two multifamily loan commitments and $112M allocation from national-mortgage-settlement funds for disaster relief

The California Housing Finance Agency Board on Feb. 20 approved three formal actions: final permanent loan commitments for Mason's Village (Palmdale) and North City (San Marcos) and a resolution to direct remaining National Mortgage Settlement funds to expand housing counseling and provide short-term mortgage assistance for homeowners affected by recent presidentially declared disasters.

Votes at a glance

- Resolution 25-03: Final loan commitment for Mason's Village (Palmdale) — Approved (roll-call). - Permanent loan: $30,000,000 (per staff presentation). - MIP subsidy: $1,600,000 (staff report). - Motion: Director Henning (mover). Second: (recorded as second; committee minutes record an affirmative second prior to roll call). - Vote: Unanimous roll-call approval. Recorded "yes" votes: Chair Cervantes; Miss Kurgan; Director Henning; Director Prince; Director Russell; Director Fiegels; Director Sotelo; Director Olmstead; Dr. White; Mr. Williams.

- Resolution 25-04: Final loan commitment for North City (San Marcos) — Approved (roll-call). - Permanent loan: $39,150,000 (per staff presentation). - MIP subsidy: $4,000,000 (staff report). - Motion: Director Henning (mover). Second: Director Sotelo. - Vote: Unanimous roll-call approval. Recorded "yes" votes: Chair Cervantes; Miss Kurgan; Director Henning; Director Prince; Director Russell; Director Fegels; Director Sotelo; Director Olmstead; Dr. White; Mr. Williams.

- Resolution 25-05: Allocation of remaining National Mortgage Settlement (NMS) funds for housing counseling and mortgage assistance to disaster-affected homeowners — Approved as amended (roll-call). - Board action: Authorized CalHFA executive director to design, implement and execute a mortgage-assistance program and expand HUD-certified housing counseling using remaining NMS funds. - High-level allocation described in discussion: approximately $25,000,000 to expand housing counseling and about $100000 pproximately $112,000,000 intended for mortgage-assistance payments (staff and administration discussions referenced figures in that range during the meeting). The board amended the resolution language to extend eligibility to homeowners affected by presidentially declared disasters since Jan. 1, 2023, and to set the mortgage-assistance design as 3 months with an ability to expand up to 6 months depending on funding and program design. - Motion: Director John Prince (mover). Second: Director Henning. - Vote: Unanimous roll-call approval as amended. Recorded "yes" votes: Chair Cervantes; Miss Kurgan; Director Henning; Director Prince; Director Russell; Director Fiegels; Director Sotelo; Director Olmstead; Dr. White; Mr. Williams.

What the board approved and next steps

Mason's Village: staff described the 191-unit Palmdale family project as Phase 2 of a larger development; total development cost per unit was noted as relatively low in staff presentation, and the loan was approved with one underwriting exception (density-bonus agreement). Staff described the MIP subsidy of $1.6 million and CalHFA's permanent loan of $30 million; the board asked questions about whether the product represented urban-fringe development and noted environmental and planning trade-offs.

North City (San Marcos): staff presented the 224-unit family project (four-story, elevator) with a $39.15 million permanent loan and $4 million in MIP subsidy. Board members asked about the capital stack, timing of construction loans vs. permanent financing, and the presence of local linkage or in-kind contributions from the master developer. Staff confirmed the project did not carry project-based vouchers but is expected to accept tenant-held Section 8 vouchers.

NMS fund use (disaster counseling and mortgage assistance): the board adopted a resolution authorizing the executive director to design and implement a mortgage-assistance program that would provide short-term mortgage payments (staff proposed three months, up to six months if funds allow) for homeowners whose primary residence was damaged or destroyed in presidentially declared disasters since Jan. 1, 2023. The board also approved expanding HUD-certified housing counseling statewide and agreed to receive a March update on program design and implementation. Staff said they expect a rapid procurement and program-launch timetable to begin assistance by late spring/early summer.

Voting details and records

All three resolutions passed on recorded roll-call votes. The board used its standard roll-call procedure; roll-call responses were recorded in the meeting minutes as noted above.

Why it matters: The loan approvals move two large multifamily projects closer to construction and permanent financing; the NMS allocation directs previously unspent settlement funds to counseling and mortgage payments for disaster survivors across multiple disasters and counties, and the board set policy guardrails before deployment.

Documents introduced or amended at vote: staff reports and resolution texts for 25-03, 25-04 and 25-05 (the board accepted a narrow amendment to extend NMS eligibility to presidentially declared disasters since Jan. 1, 2023, and to set the mortgage-assistance design at 3 months with a possible expansion to 6 months depending on program resources).