Explanation
BACKGROUND: The purpose of this ordinance is to appropriate and expend HOME Match funds returned to the City as a result of a mortgage payoff.
A project that was developed using HUD’s Housing Development Action Grant (HODAG), has been sold. As a result of the payoff of the City’s mortgage, the City received $664,727.19 from the original developer of HODAG miscellaneous income, which has been put into the HOME match account for program use.
The regulatory use of these repaid funds is that they are designated as “miscellaneous revenue” (as opposed to program income), and, as per the regulations “shall be used by the Grantee (City) to support the construction, rehabilitation or operation of real property to be used primarily for low and moderate income residential rental purposes.”
This legislation is submitted as an emergency so these funds can be immediately reallocated for vital program services.
FISCAL IMPACT: The City received repayment of $664,727.19 of HOME Match funds. This ordinance contains an appropriation within the HOME Match Fund and authorizes expenditure for this purpose.
Title
To authorize the appropriation and expenditure of $664,727.19 of HOME Funds as match dollars for HOME Investment Partnerships for eligible housing projects; and to declare an emergency. ($664,727.19)
Body
WHEREAS, the purpose of this ordinance is to appropriate and expend HOME Match funds returned to the City as a result of a mortgage payoff; and
WHEREAS, A project developed using HUD’s Housing Development Action Grant (HODAG), has been sold and as a result of the payoff of the City’s mortgage, the City received $664,727.19 of HODAG miscellaneous income, which has been put into the HOME match account for program use; and
WHEREAS, the regulatory use of these repaid funds is that they are designated as “miscellaneous revenue” (as opposed to program income), and, as per the regulations “shall be used by the Grantee (City) to support the constructio...
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