Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into a not-for-profit service contract with the Tony R. Wells Foundation in an amount up to $1,000,000.00 to act as fiscal manager of the American Dream Downpayment Initiative (ADDI) program for one year with an option to extend an additional year.
The Housing Division uses non-federal funds for the purpose of down payment assistance for homebuyers not in the Homeownership Development program. This funding will increase accessibility of the program to applicants up to 120% AMI and is projected to reduce the time to compile and review a file as specific HUD related required documents will not be required for this source of funds.
The Tony R. Wells Foundation, a non-profit corporation, will act as a fiscal manager for the program. The agreement will allocate $930,000.00 for downpayment assistance for low, moderate and middle income homebuyers and $70,000.00 (at 7% of the funds distributed) for administrative costs for the Wells Foundation. The contract is awarded in accordance with the relevant provisions of City Code Chapter 329 relating to not-for-profit service contracts. The funds will all be provided to the Wells Foundation up front with ongoing reporting on disbursements.
The services included in this not-for-profit service contract cannot be provided by existing city employees because these services are beyond the City’s current staffing capacity to provide.
Emergency action is requested to prevent disruption of the ADDI program that provides down payment assistance for homebuyers.
FISCAL IMPACT: Funding is available in the Housing Business Tax Incentive fund.
CONTRACT COMPLIANCE: the vendor number is 038668 and expires 05/22/2027.
Title
To authorize the Director of the Department of Development to enter into a not-for-profit service contract with the Tony R. Wells Foundation in an amount up to $1,000,000.00 to act as fiscal ma...
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