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HomeMy WebLinkAbout04-09-18 City Commission Packet Materials - C4. Grant Agreement with HRDC for Downpayment Assistance1 REPORT TO: Mayor and City Commission FROM: Matthew Madsen, Affordable Housing Program Manager Martin Matsen, Director of Community Development SUBJECT: Authorize the City Manager to Sign a Grant Agreement with the Human Resource Development Council (HRDC) for Down Payment Assistance for Qualified Buyers and Providing for Cash and Non-Cash Subsidy Recapture MEETING DATE: April 9th, 2018 AGENDA ITEM TYPE: Consent RECOMMENDATION: That the City Commission authorize the City Manager to sign a grant agreement between the City and HRDC to provide for down payment assistance for qualified buyers pursuant to the City’s Affordable Housing Ordinance and the recapture of cash and non-cash subsidies. BACKGROUND: Pursuant to the professional services agreement dated March 7, 2016 between the City and HRDC (recently extended by the Commission at the March 16th, 2018 commission meeting), HRDC serves as the City’s agent for the Affordable Housing Program. Under that agreement, HRDC provides homebuyer education and certification, pre-purchase counseling and screening for pre- approval, deed restriction and lien documentation, monitoring compliance with the Affordable Housing Ordinance, and subsidy recapture. This grant agreement provides the process the City and HRDC will follow for the dispersal of down-payment assistance funds and recapture of both cash and non-cash subsidies through the City’s Affordable Housing Program, as well as record-keeping and reporting requirements. UNRESOLVED ISSUES: None determined at this time. ALTERNATIVES: As determined by the Commission. FISCAL EFFECTS: The Commission has allocated $200,000 for down payment assistance in the 2017-2018 budget for the Affordable Housing Program. This grant agreement will allow the Community Development Director to approve the future disbursal of those funds to HRDC for certified eligible buyers of homes that meet the Affordable Housing Ordinance’s definition of Lower-Priced Affordable Homes. Attachments: Grant Agreement with HRDC - Affordable Housing Ordinance Commission Memorandum 63 64 65 66 67 68 69 70 71 72 73 74