Pacific Grove Council Approves $199,000 CalHome Loan Transfer for Home Rehab

The Pacific Grove City Council voted unanimously Wednesday to approve a budget amendment to move $199,000 from CalHome reserves to fund an approved homeowner rehabilitation loan while staff awaits potential CDBG funding.

Lede facts: Staff told the council a qualifying homeowner has been approved for a housing rehabilitation loan; the requested $199,000 transfer would allow the rehabilitation to proceed immediately while staff completes a competitive grant application. Staff said program income (loan repayments) and potential future grants would replenish the program.

Why it matters: The CalHome loan program provides forgivable or repayable rehabilitation assistance to qualifying homeowners. Councilmembers said the program stretches limited dollars, protects housing stock and is a cost-effective way to make homes livable.

What staff said: Staff described the protections for the city’s funds, saying the loan is secured by a deed or notice on the property and funds return to the city if title transfers or if the borrower defaults. Staff reported the CalHome reserve balance in the meeting record (transcript text unclear on the exact figure); they said prior years produced two loan payoffs annually and additional small projects are in the pipeline.

Council discussion and vote: Council members asked whether other applications were pending (staff said two prior projects and one additional application in process), whether $199,000 would fully satisfy the borrower’s needs (staff said yes) and how the program is protected (deed restriction/return of funds). After discussion a motion to introduce the ordinance and approve budget recommendations (as listed in the staff report) was made and seconded; roll-call vote recorded 7-0 in favor.

Next steps: Staff will proceed to execute the loan and return funds to the program as repayments are collected; council directed staff to continue pursuing grant funding to sustain future projects.