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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/20/2002 - SECOND READING OF ORDINANCE NO. 099, 2002, APPROPR AGENDA ITEM SUMMARY ITEM NUMBER: 13 FORT COLLINS CITY COUNCIL DATE: August 20, 2002STAFF• Julie Smith SUBJECT: Second Reading of Ordinance No. 099, 2002, Appropriating Unanticipated Revenue in the Home Investment Partnership Fund for the Homebuyer Downpayment Assistance Program. RECOMMENDATION: Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY: Since January of this year, the City of Fort Collins has received program income from HOME- funded activities in the amount of$51,000 and has also received previously-funded CDBG dollars from a canceled project. These funds are available for reprogramming to eligible programs and projects. Since 1995, the City has used a portion of its CDBG and HOME funds to provide downpayment assistance to first time homebuyers. Due to low interest rates and a supply of affordable units available for entry-level homeownership, the City's downpayment assistance fund was fully committed by June 1. Ordinance No. 099, 2002, which was unanimously adopted on First Reading on July 16, 2002, extends the Downpayment Assistance Program to allow a minimum of 19 additional households to have access to the funds until regular CDBG and HOME funds become available in November of 2002. AGENDA ITEM SUMMARY ITEM NUMBER: 19 FORT COLLINS CITY COUNCIL DATE: July 16, 2002 STAFF: Julie Smith SUBJECT: Items Relating to the Homebuyer Downpayment Assistance Program. RECOMMENDATION: Staff recommends adoption o e Reso0ionthe Ordi ce on First Reading. The CDBG IL IF Commission voted, with one ab on d the u the funds for the Downpayment Assistance Program. FINANCIAL IMPACT: This action disburses funding for an affordable housing downpayment project through the HOME and CDBG Programs. A total otace ynuf rogram Income and $51,000 from CDBG ReprogrammedMarsI)i ity's Homebuyer Assistance Program and provide downp ent as additional income qualified families. EXECUTIVE SUMMARY: A. Resolution 2002-066 Allocatin Certain Home Pro ram Income Funds and Reprogrammed CDBG Funds to the C' s Ho Por pa e s stance Program. B. First Reading of Ordi ce 2 ppropri ng Unanticipated Revenue in the Home Investment Partners ip Fun omebuyer ownpayment Assistance Program. Since January of this year, the City of Fort Collins has received program income from HOME- funded activities in the amount of$51,000 and has also received previously-funded CDBG dollars from a canceled project. These funds are available for reprogramming to eligible programs and projects. Since 1995, the City has used a portion of its CDBG and HOME funds to provide downpayment assistance to first time homebuyers. Due to low interest rates and a supply of affordable units available for entry-level homeownership, the City's downpayment assistance fund was fully committed by June 1. The intent of this funding request is to extend the Downpayment Assistance Program to allow a minimum of 19 additional households to have access to the funds until regular CDBG and HOME funds become available in November of 2002. DATE: July 16, 2002 2 I ITEM NUMBER: 19 BACKGROUND: Since 1995,the City of Fort Collins Advance Planning Department has administered the Homebuyer Downpayment Assistance Program that provides downpayment and closing cost loans to income- eligible first-time homebuyers. The Program has used equal amounts of CDBG and HOME federal dollars to fund the Program. Since 1995, the City has helped over 550 families reach the dream of home ownership. Currently, the City provides eligible families with a due-on-sale, zero interest loan of up to $8,336 that can be used for a downpayment or to cover closing cost purposes thereby reducing the out-of- pocket dollars needed to close o e. o be affordable to the family by not exceeding more than 38% its g inco f h in ts. Federal funds of$400,000 were to and HI Programs in November of 2001 to assist 50 families purchase new homes over the next year. Due to a supply of affordable condominiums and lower interest rates, applications for program assistance surged during the first half of 2002 so that by June 1 all available funding had been committed. No additional funding from regular funding streams would be available until mid-November 2002. Since the program serves a vital need in assisting families whose incomes are below 80% of the Area Median Income (AMI) achieve the dream of home ownership, it was proposed that other available funds be directed tow t e p am to a 'lability of assistance. Funds returned to the HOME Progr s pro inco e m pa a of previous loans currently total about $51,000. In addition, ds in t amo t 5,0 ave been returned to the CDBG Program from the Fort Collins us' th y' igden F affordable housing project, that is not going forward at this time. These funds are available for immediate reprogramming. CDBG Commission Recommendation A proposal to allocate the$51,000 of the HOME Program Income and a matching amount of CDBG Reprogrammed funds to extend the Homebuyer Downpayment Assistance Program was discussed by the CDBG Commission at its regular meeting on June 13, 2002. The proposal received a recommendation for approval with one abstention. If funded, the Program will begin accepting applications on August 1, 2 o t u c si pp imately 19 families could be assisted with the extension of a progr l