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Turlock council reallocates HOME funds, approves sale of city homes and adopts updated rehab policies
Summary
The council unanimously approved a substantial HOME amendment shifting $600,000 from housing rehabilitation to first‑time homebuyer assistance, authorized sale of three city‑owned homes to income‑eligible buyers through a lottery, and adopted updated housing rehabilitation policies including higher forgivable sums and mobile‑home grants.
City housing staff presented a package of coordinated housing actions at the Turlock City Council meeting and the council approved all items unanimously.
Staff recommended a substantial amendment to the FY 2024–25 HOME annual action plan that would move $600,000 from the housing rehabilitation category into the first‑time homebuyer assistance category. According to staff, the change would raise first‑time homebuyer assistance from $300,000 to $900,000 and reduce rehabilitation funding to approximately $797,000. Staff said roughly $600,000 in HOME funds will need to be expended by September 2026, and that moving funds to first‑time homebuyer assistance was intended to increase the ability to use allocated funds before applicable deadlines.
Council then authorized the sale of three city‑owned residential properties to income‑eligible first‑time buyers through a lottery process. Staff said the city currently owns five properties acquired in 2023 with CDBG and HOME funds; three are being rehabilitated or are vacant and have been determined exempt surplus land. Two addresses were named in the presentation (1827 Shadow Park Drive and 2065 Cody Court) and staff said the city will use recent appraisals as the basis for pricing and that an application/lottery will ensure eligibility.
Finally, the council adopted updated housing rehabilitation policies and procedures. Key changes presented by staff included increasing forgivable loan coverage from $20,000 to cover the first $40,000 of rehabilitation costs for eligible homeowners; removing amortized loans for owner‑occupied rehabs (retaining amortized options for investor‑owned rehab projects); allowing contractor billing monthly for completed work with standard retention; adding removal from the contractor list after repeated verified complaints; authorizing mobile‑home rehabilitation grants up to $30,000 (with appraisal and value‑to‑cost safeguards); and increasing maximum loan amounts to $80,000 per unit except for mobile homes. Staff said the housing attorney reviewed the policy updates.
Council members praised staff for responsiveness and for moving funds and program changes that officials said will increase the city’s ability to get money into the community. Multiple council votes on the package items passed 5–0.
Votes at a glance
• HOME program amendment (first substantial amendment, FY 24/25): approved 5–0; staff recommended reallocating $600,000 from housing rehabilitation to first‑time homebuyer assistance to improve spenddown by program deadlines.
• Authorization to sell three city‑owned properties to income‑eligible first‑time buyers (lottery): approved 5–0; properties were acquired with CDBG/HOME funds; staff to use appraisals to set sale prices.
• Adoption of updated housing rehabilitation policies and procedures: approved 5–0; notable changes include increasing forgivable loan coverage to the first $40,000, mobile‑home grants up to $30,000, and maximum loans up to $80,000 per unit.
Staff said implementation steps and application processes will be posted and that housing staff will provide further guidance to interested residents.
