Explanation
BACKGROUND: This ordinance authorizes the Director of the Department of Development to execute two Master Mortgages for single family homes financially supported through the Department of Development’s American Dream Down Payment Initiative (ADDI) program.
The Department of Development provides down payment assistance using federal HOME funds or non-federal funds to first time homebuyers whose household income is at or below 80% or 120% AMI, respectively, for the purchase of a home in the City of Columbus. The amount of assistance provided is the lesser of 6% of the purchase price or $7,500.00 and is provided as a forgivable loan. The household must remain in the home for a period of five years for the loan to be forgiven.
Participants in the program execute a mortgage with the City (the lender) in the amount of the financial support provided. Each mortgage document includes all the necessary requirements of the ADDI program and the necessary requirements based upon the funding source. The purpose of the Master Mortgages is to establish one document for each funding source that includes standard mortgage requirements that apply to all borrowers who purchase a home. The Master Mortgages will reduce the number of pages of the mortgage document signed by participants of the ADDI program thereby saving them money in recording fees. The Master Mortgage document is incorporated by reference in the mortgage document.
The Master Mortgage documents will be filed with the Franklin County Recorder’s Office (and other counties as necessary that include the City of Columbus).
The Master Mortgages executed under the authority of this ordinance shall be effective starting the date this ordinance is effective.
Emergency action is requested in order for Master Mortgages to be recorded as soon as possible in order to save first time homebuyers recording costs when buying their first home.
Fiscal Impact: no funding is needed for this ordinance.
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