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Parlier OKs Self Help Enterprises to administer $3 million CalHome award, includes administrative fee
Summary
Council approved a contract with Self Help Enterprises to administer the city’s 2023 CalHome loan/grant award (total $3,000,000). Staff said the agreement carries a $60,000 startup fee and a portfolio servicing fee of $12–$15 per loan per month.
The Parlier City Council voted to allow the city to enter into an agreement with Self Help Enterprises to administer and manage a 2023 CalHome award totaling $3,000,000, the city’s staff reported Thursday.
City staff and the recommended partner told the council Self Help Enterprises has experience administering similar programs for other jurisdictions and is able to provide loan processing, compliance and reporting required by the state. Staff said the city lacks the internal staffing expertise and that the CalHome award requires specialized administration to ensure compliance with federal and state reporting and loan-portfolio maintenance.
The agreement includes a stated $60,000 implementation fee and a separate portfolio-servicing fee of roughly $12 to $15 per loan per month; staff estimated the total number of loans the program can support at the grant ceiling ($75,000 per loan) would be about 25 loans. "There is a fee associated with it ... the cost is a $60,000 fee to roll out and administer the award," staff said. They further noted that administrative cost percentages common to other grants were not available for this particular award, so the startup fee and per-loan portfolio fee will cover services.
Staff described the award allocation as roughly $2,000,000 targeted to first-time homebuyer assistance and $1,000,000 for ADU and junior ADU programs. Staff and council members said the partnership would enable the city to move forward after delays and provide down-payment and ADU-related assistance locally. Staff also committed to outreach and buyer education once Self Help Enterprises begins operations in the city.
Council approved the recommendation (vote recorded as 5-0). Council discussion noted the city had used Self Help Enterprises before and emphasized the importance of program education to applicants and clear documentation of loan terms. Staff said the city will receive reports and that portfolio fees will be assessed only on actual loans produced under the program.
