Explanation
BACKGROUND: This ordinance authorizes the appropriation and expenditure of up to $35,000.00 of the 2020 HOME Investment Partnerships Program (HOME) program income and authorizes the Director of the Department of Development to enter into a HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with individual homebuyers who access the American Dream Downpayment Assistance (ADDI) program.
The City of Columbus provides down payment assistance of HOME funds to first time homebuyers whose household income is at or below 80% AMI for purchase of a home in the City of Columbus or Columbus City School District. The amount of assistance provided is the lesser of 6% of the purchase price or $5,000.00 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. It is estimated that seven to eight new homebuyers will be assisted with these funds. Additional funds may be encumbered at a later date in 2021 for this program.
This legislation represents appropriation for the HOME portion of the 2021 Action Plan, per Ordinance 2345-2020.
Emergency action is requested to be in compliance with U.S. Department of Housing and Urban Development (HUD) HOME rules on the obligation of HOME program income and to allow those seeking down payment assistance to obtain it in a timely manner.
Fiscal Impact: $35,000.00 of 2020 HOME program income is available in grant G451903 for these agreements.
Title
To authorize the appropriation and expenditure of up to $35,000.00 of the 2020 HOME Investment Partnerships Program (HOME) program income and to authorize the Director of the Department of Development to enter into a HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with individual homebuyers who access the American Dream Downpayment Assistance (ADDI) program; and to declare an emergency. ($35,000.00)
Body
WHEREAS, the Cit...
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