MEETING DATE:
JULY 28, 2026
SUBJECT:
Title
RESOLUTION NOS. 2026-9648 & 2026-9649 - AUTHORIZATION TO PROCEED WITH DEFAULT REMEDIES AND OPTION TO PURCHASE PROPERTY IN DEFAULT OR NON-CURABLE BREACH UNDER CALHOME AND/OR SAN MARCOS AFFORDABLE HOUSING PROGRAM AGREEMENTS
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Recommendation
Recommendation
1. ADOPT a resolution authorizing the City Manager or designee to initiate default proceedings, and all associated enforcement actions as provided in CalHOME and/or San Marcos Affordable Housing Program (SMAHP) regulatory agreements, including but not limited to acceleration of the loan, foreclosure, and the option for the City to purchase the property at or below the maximum sales price established in the applicable agreements.
2. ADOPT a resolution authorizing fund appropriation up to the maximum sales price, together with associated closing costs, as outlined in Affordable Housing Regulatory Agreements.
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Board or Commission Action
Resolution No. 2011-7582 authorized the submittal of an application for the CalHOME grant program and designated the City Manager as the authorized signatory on all grant materials.
Executive Summary
The City of San Marcos administers CalHOME and SMAHP homeownership programs designed to preserve long term affordability and maximize access to limited homeownership resources. These programs rely on strict compliance including but not limited to occupancy, resale, and affordability requirements to ensure funds are used as intended, protect State investment, and maintain the City's ability to operate its programs effectively.
When borrowers fail to comply with program requirements, such as failing to occupy the property as their primary residence, renting the home illegally, or violating affordability covenants, the City is obligated under State law and the regulatory agreements to initiate default actions. These steps are essential to preserve the program, safeguard limited resources, and ensure assistance continues ...
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