Explanation
BACKGROUND: This ordinance authorizes the appropriation and expenditure of up to $75,000.00 of the 2020 HOME Investment Partnerships Program (HOME) entitlement grant from the U.S. Department of Housing and Urban Development and to enter into a commitment letter, loan agreement, promissory note, and mortgage with Habitat for Humanity MidOhio for the construction of a single family home.
Habitat for Humanity MidOhio (HFHMO) proposes to build one new single-family home in the City of Columbus at 1344 E 15th Avenue. The home will be built to AWARE standards and is designed to blend in with the surrounding neighborhood. It will be a single story home with a front porch and no garage and built on vacant property purchased from COCIC.
The first-time homebuyer identified for this home is a single mother with two children. She earns below 80% of the Area Median Income.
HFHMO has a 34 year history of creating safe, decent, affordable homeownership opportunities for low-and very-low-income families. An affiliate of Habitat for Humanity International, HFHMO has built, repaired, or rehabilitated more than 600 homes throughout their service area of Franklin, Madison, and Licking Counties. Their homes are typically sold to first-time homebuyers earning 30%-60% of the Area Median Income who are willing to partner with them by completing a homeownership education course and up to 200 hours of sweat equity work on their own home, as well as other Habitat homes.
A unique aspect of the Habitat model is that they offer no-interest, no-profit mortgages to their buyers, making the homes affordable to families who would not qualify for traditional mortgages.
This legislation represents appropriation for a part of the HOME portion of the 2021 Action Plan, per Ordinance 2345-2020.
Emergency action is requested to allow for the developer to maintain the project schedule.
Contract Compliance: the vendor number is 004859 and expires 4/13/2023.
Fiscal Impact: $75,000.0...
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