Explanation
BACKGROUND: This ordinance authorizes the appropriation and expenditure of up to $45,000.00 from two HOME Investment Partnerships Program (HOME) grants 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 Down payment Assistance (ADDI) program.
The City of Columbus provides down payment assistance with 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 $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.
Year to date, eight first time homebuyers received funding through this program. It is estimated that 11 more first time homebuyers may receive funding in the remainder of 2022.
This legislation represents a portion of the appropriation for the HOME portion of the 2020 and 2021 Action Plans, per Ordinances 2162-2019 and 2345-2020, respectively.
Emergency action is requested in order to prevent a disruption in the program.
Fiscal Impact: $25,000.00 is available in the 2020 HOME grant (G451903) and $20,000.00 is available in the 2021 HOME grant (G452000).
Title
To authorize the appropriation and expenditure of up to $45,000.00 from two HOME Investment Partnerships Program (HOME) grants; 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 Down payment Assistance (ADDI) program; and to declare an emergency. ($45,000.00)
Body
WHEREAS, the City of Columbus is a participating jurisdiction of the U.S. Department of Housing a...
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