HomeMy WebLinkAbout2001-066-05/01/2001-ADOPTING PROCEDURES FOR THE DISBURSEMENT OF FUNDS IN THE CITYS HOME BUYER ASSISTANCE PROGRAM RESOLUTION 2001-66
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING PROCEDURES FOR THE DISBURSEMENT OF FUNDS
IN THE CITY'S HOME BUYER ASSISTANCE PROGRAM
WHEREAS,on March 21, 1995,the Council of the City of Fort Collins adopted Resolution
95-40 establishing a procedure for the disbursement of funds in the City's Homebuyer Assistance
Program which procedure was amended in its entirety by the Council pursuant to Resolution 95-96;
and
WHEREAS, upon the recommendation of the Affordable Housing Board and Community
Development Block Grant Commission, the Council has determined that the procedures as
established in Resolution 95-96 should be amended in order to change the maximum amount
available to applicants for down payment and closing cost assistance from$5,000 per household to
a maximum of 4.5% of the local FHA limit per household for those households with incomes at or
below 80% of area median income ("AMI") and to a maximum of 9% of the local FHA limit per
household for those households which have incomes at or below 50% of AMI; and
WHEREAS,the purpose of this resolution is to amend the procedures previously established
by Resolution 95-96 accordingly.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Resolution 95-96 be, and hereby is repealed and that the following procedures be
adopted for the purpose of processing applications and making disbursements of funds pursuant to
the Homebuyer Assistance Program (the "Program"):
1. Applications for the disbursement of Program funds will be accepted by the City
which meet the following criteria:
a. The applicant and the subject property are verified by the City to be eligible
for Program funding.
b. The project conforms with the housing priorities contained in the City's
Consolidated Plan or the City's Comprehensive Housing Affordability Strategy (CHAS),
whichever is in effect.
C. The applicant demonstrates that it has the ability to abide by the conditions
of and perform the obligations of the Program contract.
d. The project is determined by the City to be feasible.
e. The City Council has set aside sufficient funds for operation of the program.
2. The process to award funding of projects will be as follows:
a. Applications for funding shall be submitted to the City's CDBG/HOME
Administrator.
b. City staff shall screen all applications for basic eligibility and program
priority conformance. City staff shall separately review applications for down payment and
closing costs assistance not exceeding the limits provided in subparagraph(1)or(2) below
and those applications will be certified for eligibility based upon the applicant's gross
household income. Eligible down payment and closing cost applicants shall receive from
the City staff a Letter of Conditional Commitment which will entitle such applicants to the
appropriate funding at the home closing. No further review shall be required of such down
payment and closing cost applications. Any assistance under this paragraph (b) shall be
subject to the following limits:
(1) A maximum of 4.5% of the local FHA limit per household for those
households which have incomes at or below 80% of AMI, or
(2) A maximum of 9%of the local FHA limit per household for those households
which have incomes at or below 50% of AMI.
Passed and adopted at a regular meeting of the Council of the City.of Fort Collins held this
1 st day of May, A.D. 2001.
A g 3
_ e /
Mayor
ATTEST:
City Clerk tea