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HomeMy WebLinkAboutExhibitDepartment of Community Development Housing Program Summary SINGLE FAMILY REPLACEMENT HOMES Current Policy Proposed Policy Project Description Designed to address substandard and dilapidated housing units that the cost of repairs cannot be addressed through the Single Family Rehabilitation Programs. Funding SHIP, CDBG No Change Repayment Requirements Interest from 0 3% based on household income. Repayment of principal and interest begins 6 months after completion of property. Deferred loan at Zero (0%) interest for a term of 30 years. i. In the case of sale or transfer of the unit, the full amount of the loan will be due and payable. Minimum/Maximum Subsidy Maximum of $120,000 Maximum of $150,000 Affordability Period Maximum of 30 years Maximum of 30 years Type of Assistance Construction and relocation expenses paid directly to copator. All construction and demolition costs and relocation expenses if any paid directly to contractor with homeowner signing off on all payment requests. Maximum Completed Value of Property Maximum Value: $236,000 Maximum Value: $236,000 Clientele Selection 120% and below of Area Median Income, priority given to elderly and disabled homeowners Request for applications advertised in local news papers and processed on a first -come first -served basis, however, priority will be given to unsafe structures referred from the building department and the rehabilitation program. ATTACHMENT "A" Department of Community Development Housing Program Summary SINGLE FAMILY REPLACEMENT HOMES Current Policy Proposed Policy Project Description Designed to address substandard and dilapidated housing units that the•cost of repairs cannot be addressed through the Single Family Rehabilitation Programs. Funding SHIP, CDBG No Change Repayment Requirements Interest from 0-3% based on household income. Repayment of principal and interest begl s 6 months after completion of f °:a property. Deferred forgivable loan at Interest of 0% to 3% based on Income for a term of 30 years according to the following schedule: 0% - Household Income at or below 50% 1% - Household Income between 50% and 60% 2% - Household income between 60% and 70% 3% - Household income between 70% and 80% For household Income between 80% and 120%, the loan will be fully amortizing at 3% with monthly payment of principal and Interest. In the case of sale or transfer of the unit, the City will share in the gain realized by the borrower. I. 0 to 3 years — 100% of the City's pro rata share of the gain generated. II. 3 — 30 years — On the and year, City receives 85% of the City's pro rata share of the gain generated and borrower receives 16%. Thereafter, the borrower receives additional 5% of the City's pro rata share per year reducing the City's share by the same `\percentage Minimum/Maximum Subsidy Maximum of $120,000 Maxlmuri of $150,000 Affordability Period Maximum of 30 years Maximum 4,30 years Type of Assistance Construction and relocation expenses - paid directly to contractor. All constructionand demolition costs and relocation expenses if any paid directly to contractor with homeowner signing off on all payment requests. �� ti Maximum Completed Value of Property Maximum Value: $236,000 Maximum Value: $236,000 Clientele Selection 120% and below of Area Median Income, priority given to elderly and disabled homeowners Request for applications advertised in local news papers and processed on a first -come first -served basis, however, priority will be given to unsafe structures referred from the