Soledad council adopts homebuyer assistance, business loan guidelines to pursue state housing funds

The Soledad City Council voted on Oct. 2 to adopt revised guidelines for a Homebuyer Assistance Program and an Economic Development Business Assistance Loan Program and directed staff to pursue state funding to implement them.

City staff said the two programs will be managed locally and use a mix of funding streams from the California Department of Housing and Community Development, including CDBG and CalHome. "We are getting ready to secure financial support from the California Department of Housing and Community Development," Beatrice Trujillo said during the staff presentation. The guideline changes were described to address gaps identified during earlier workshops and outreach.

Under the business loan guidelines, eligible projects include locally licensed existing businesses, startups that obtain required licenses and permits, and owner‑occupied or leased tenant businesses. Loan terms will depend on the use: operating capital loans are described as short‑term (typically five years), equipment and supply loans may extend up to 10 years, and loans secured by real property can extend up to 20–30 years. Staff said interest rates will "start at 3%" and may be adjusted based on underwriting factors such as equity, cash flow and management experience.

The homebuyer assistance guidelines target households at or below 80% of area median income (AMI). Applicants must complete individual homebuyer counseling and document at least a 1% contribution toward the purchase price. Staff described many homebuyer loans as long‑term, deferred loans at 0% interest that permit voluntary early payments without penalty; interest may apply only under limited circumstances outlined by the program rules. The transcript included a garbled reference to a maximum purchase price that could not be verified; the guidelines staff presented tie any price limits to the applicable program rules (CalHome and CDBG market standards) rather than a single fixed number.

Council members pressed staff on outreach and accessibility. Several council members asked for bilingual workshops and different time slots to reach working residents and small business owners. Tinta Vargas, economic coordinator, said staff will adjust formats — including bilingual sessions and both English and Spanish workshops — and partner with organizations such as SBDC and local community development corporations to provide financial literacy and application assistance.

Council members also requested more visible marketing for the programs, including posters and direct outreach to downtown businesses. Staff said program brochures and one‑on‑one visits downtown are already part of the plan and that the guidelines include a marketing strategy section.

The resolution was moved and seconded and passed on a 4–1 vote; the transcript records one absence for the vote.

What happens next: staff told the council the city will take the application package for state funding to the Oct. 23 meeting for final local approval and submission, and will schedule workshops and partner sessions to help residents and business owners prepare applications.