DATE: 02/18/2026
TO: Honorable Mayor and City Councilmembers
FROM: Housing and Neighborhood Services Department
TITLE: CALHOME/HOME FIRST-TIME HOMEBUYER PROGRAM
RECOMMENDATION
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Staff recommends that City Council: Appropriate $500,000 in available CalHome funding to be used with the existing $500,000 in HOME Investment Partnership funds currently held by the City for continued use in the City of Oceanside's First-Time Homebuyer Program (FTHB Program) as part of the Fiscal Year 2025-26 Operating Budget.
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BACKGROUND AND ANALYSIS
Since 2001, the City of Oceanside's CalHome Program has assisted lower-income families in achieving homeownership by providing down payment assistance (DPA) for the purchase of single-family homes for owner occupancy. The program utilizes two distinct funding sources: 1) CalHome, state funding from the California Department of Housing and Community Development; and 2) HOME Investment Partnership Program, federal funding from the U.S. Department of Housing and Urban Development (HUD).
The CalHome/Home FTHB Program was paused in 2021 due to the COVID-19 pandemic and the increasingly unstable housing market conditions limiting the financial ability of lower- and moderate-income families to purchase a home. Current market conditions support the reinitiation of the FTBH Program. The Federal Reserve implemented three consecutive interest rate cuts in late September, October, and December. These rate reductions, combined with moderating Oceanside home values, have meaningfully improved affordability metrics for lower- and moderate-income households. Given these favorable trends, it is anticipated that market conditions will align for an effective first-time homebuyer program in Oceanside.
The Housing & Neighborhood Services Department seeks to ensure readiness with this program, as market conditions align favorably for lower-income families seeking to achieve homeownership in Oceanside. On January 6, 2025, HUD updated the pro...
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