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Tulare council approves treating HOME program income as recurring grant application; staff recommends prioritizing first-time homebuyer loans

Tulare City Council · January 21, 2026
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Summary

Council approved a staff recommendation to treat recurring HOME program income as part of a regular application/plan to HCD and to commit program income primarily to first-time homebuyer and owner-occupied rehab loans; staff estimated average annual program income around $200,000.

The council approved item 7.10 after a staff presentation by Alexis Castales, the city’s service housing grants manager, who explained that the state requires jurisdictions with recurring HOME program income to document planned uses and report on the funds. Castales said the city’s portfolio includes more than 200 borrower records and that, historically, program income has averaged a little over $200,000 annually; staff recommended dedicating program income primarily to first-time homebuyer loans and owner-occupied rehab and not broadly to tenant-based rental assistance.

Councilmembers asked about repayment terms, forgiveness options for target professions (police, firefighters, nurses) and whether HOME funds could pay operating costs for emergency shelter projects. Castales and other staff said HOME is typically limited to housing activities (homebuyer assistance, rehab, development of rental units) and generally may not be used for ongoing shelter operating contracts or general operating costs; staff offered to return with additional clarification on eligible activities and program structuring.