HomeMy WebLinkAbout2006-073-07/18/2006-ADOPTING A REAL ESTATE RESALE PROVISION FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMEN RESOLUTION 2006-073
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING A REAL ESTATE RESALE PROVISION FOR
COMMUNITY DEVELOPMENT BLOCK GRANT(CDBG),
HOME INVESTMENT PARTNERSHIP (HOME), AND
AFFORDABLE HOUSING FUND LOANS
WHEREAS, the City of Fort Collins receives financial assistance from the Department of
Housing and Urban Development(HUD)under the Community Development Block Grant(CDBG)
Program, and Home Investment Partnership (HOME) Program, for affordable housing and
community development activities; and
WHEREAS, the City Council allocates funds from the General Fund into the Affordable
Housing Fund for affordable housing projects/programs; 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 event of future adverse financial situations; and
WHEREAS, when the competitive process started in the spring of 2000, the City allocated
funding from the CDBG and HOME Federal Grant Programs, as well as funds from the City's
Affordable Housing Fund, as zero-interest,due on sale, deferred loans; and
WHEREAS,on November 18,2003,the City Council adopted Resolution 2003-130 adding
a five percent (5%) fee to the principal of City loans to be repaid at the time of repayment of the
loan; and
WHEREAS,the CDBG Commission is concerned about allocating funds to major real estate
transactions where the intended purpose of the recipient might change and the property is sold
whereby the recipient receives a "windfall profit" from real estate appreciation gained, in part, by
City assistance, an
d
WHEREAS, at the CDBG Commission meeting conducted on March 9, 2006 meeting,the
Commission voted unanimously to recommend to the City Council that the following condition be
attached to any contract for the acquisition of real property using funds from the City of Fort Collins:
If the recipient fails to complete the project for which it received financial assistance
pursuant to the agreement to purchase real property and sells the property, the City
will be entitled to receive either: (a)the amount of the City's financial assistance plus
five percent (5%); or(b) the percentage of the sale price of the property purchased
with financial assistance pursuant to the agreement which is equal to the percentage
of the City's financial assistance toward the initial purchase price, whichever is
greater.
NOW, THEREFORE,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that staff is hereby authorized to add the following condition(or similar language)to any
contract for the acquisition of real property using funds from the City of Fort Collins:
If the recipient fails to complete the project for which it received financial assistance
pursuant to the agreement to purchase real property and sells the property, the City
will be entitled to receive either: (a)the amount of the City's financial assistance plus
five percent (5%); or (b) the percentage of the sale price of the property purchased
with financial assistance pursuant to the agreement which is equal to the percentage
of the City's financial assistance toward the initial purchase price, whichever is
greater.
Passed and adopted at a regular meeting of the Coun ' the City of Fort Collins this 18th
day of July, A.D. 2006.
Mayor
ATTEST:
L" -
City Clerk