HomeMy WebLinkAbout2003-130-11/18/2003-APPROVING A POLICY CHANGE IN THE MANNER LOANS ARE MADE WITH CDBG, HOME, AND AFFORDABLE HOUSING FUNDS RESOLUTION 2003-130
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING A POLICY CHANGE IN THE MANNER LOANS ARE
MADE WITH CDBG, HOME, AND AFFORDABLE HOUSING FUNDS BY
ADDING A 5% FEE TO THE PRINCIPAL REPAYMENT AMOUNT
WHEREAS,presently,the City allocates funding from the CDBG and HOME Federal Grant
Programs, as well as funds from the City's Affordable Housing Fund, for non-public service
programs as zero-interest, due on sale, deferred loans; and
WHEREAS, unknown budget constraints could adversely affect the availability of funds
from the three sources in the future and the early generation of program income could help ensure
that these programs continue in the event of future adverse financial situations; and
WHEREAS,families helped by these loans should be required to participate in helping future
families achieve their housing goals; and
WHEREAS, at the CDBG Commission meeting conducted on October 2, 2003, the
Commission voted to recommend to the City Council a policy change in the manner in which the
City allocates funding from the CDBG/HOME Programs and the City's Affordable Housing Fund
by adding a fee in the amount of five percent(5%) of principal to the City's loans, which fee shall
be repaid at the time of repayment of the loan.
NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that City staff is hereby authorized to add a fee in the amount of five percent (5%) of
principal,which fee shall be paid at the time of repayment of the loan,for all loans made with CDBG
and HOME Federal Grant Program funds, as well as loans funded from the City's Affordable
Housing Fund.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this
18th day of November A.D. 2003.
Mayor
ATTEST:
Z-/X mil( /ems
City Clerk 1(Afel a