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HomeMy WebLinkAbout04-09-18 City Commission Packet Materials - A6. Disbursement of funds to HRDC for Down Payment Assistance for Homebuyers1 REPORT TO: Mayor and City Commission FROM: Matthew Madsen, Affordable Housing Program Manager Martin Matsen, Director of Community Development SUBJECT: Authorize the Community Development Director to disburse $80,000 from the current Affordable Housing Program budget for down payment assistance of $10,000 each to eight qualified home-buyers through the Human Resource Development Council (HRDC). MEETING DATE: April 9th, 2018 AGENDA ITEM TYPE: Action RECOMMENDATION: That the City Commission authorize the Community Development Director to disburse $80,000 of Affordable Housing Program Down Payment Assistance Funds to the Human Resource Development Council (HRDC) to assist eight qualified home buyers with the purchase of Affordable Homes through the Affordable Housing Program. PROPOSED MOTION: I move to approve the disbursement of $80,000 to the Human Resource Development Council to provide down payment assistance in the amount of $10,000 each to eight qualified homebuyers for the purchase of Affordable Homes. BACKGROUND: As part of the City’s Affordable Housing Ordinance (Ordinance No. 1922), City funds may be used to incentivize the building, sale and purchase of homes that meet the Ordinance’s definition of Lower-Priced Affordable Homes. For the 2017-2018 fiscal year budget, the City Commission approved a budget line item of $200,000 to be used towards down-payment assistance for qualified home-buyers through the city’s Affordable Housing Program. Pursuant to a professional services agreement, HRDC works as the City’s agent for Affordable Housing Services and will certify the buyers are eligible for down-payment assistance meeting the requirements of 80% AMI or below. The first request for down payment assistance is for eight homes in the previously amended Phase 3 Planned Unit Development (PUD) for Lakes at Valley West and will be sold as Lower-Priced Homes. The addresses for the eight homes are: 5583 Arnhem Way, 5575 Arnhem Way, 5567 Arnhem Way and 5557 Arnhem Way 5519 Arnhem Way, 5533 Arnhem Way, 5603 Arnhem Way and 5609 Arnhem Way Commission Memorandum 446 2 This request is being brought to the Commission for authorization as this is the first time that home buyers have requested down payment assistance through the City’s Affordable Housing Program. Authorization of the HRDC grant agreement earlier in this meeting will allow the Community Development Director to disburse funds that have been previously approved by the Commission in the current year’s budget for the Affordable Housing Program. UNRESOLVED ISSUES: None determined at this time. ALTERNATIVES: As determined by the Commission. FISCAL EFFECTS: The current Affordable Housing Program budget has $200,000 set aside for down payment assistance. The $80,000 being requested is within the amount funded in the 2017-2018 fiscal year budget and will reduce the available amount to $120,000. Attachments: Maps of Lakes at Valley West Phase 3 Affordable Homes 447 Maps of Affordable Homes for Lakes at Valley West Phase 3 and All Phases 448 Maps of Affordable Homes for Lakes at Valley West Phase 3 and All Phases Preliminary Plat Map showing affordable home lots in relation to all lots of Phases 1 through 6 in Lakes at Valley West. 449