Mayor’s Office to apply for $1.5M in CalHome funds as HUD cuts loom

The Mayor’s Office of Housing told the Budget and Finance Committee it will apply for up to $1.5 million in state CalHome funds to support mortgage-assistance and home-rehabilitation activities targeted to low- and moderate-income households.

Bridal Chu said the office plans to seek the maximum available award, splitting a potential $1.5 million roughly evenly between mortgage assistance and home rehabilitation — approximately $750,000 each. Chu told supervisors the proposal would aim to serve about 19 households with mortgage assistance (up to roughly $36,000 per household) and about 13 households with home-rehab awards (about $50,000 per household), subject to application and award rules.

Chu also flagged national-level funding uncertainty: staff have seen early indications that the HOME program could face a steep cut (she cited about 38%) and that the Community Development Block Grant program might see another cut on the order of 15% compared with recent allocations. She said Emergency Solutions Grant funding for homeless services appears likely to remain level. Staff said the local RFP will be released imminently and that the city plans a three-year funding-cycle approach to give community-based organizations more stability.

Supervisor questions focused on timing and transparency in the RFP and allocation process; staff said proposals would be returned to the committee with preliminary recommendations in March and that final allocations historically have arrived late in the federal process. If awarded, the Mayor’s Office will return to the committee in the spring for official acceptance of the funds.