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HomeMy WebLinkAboutSpecial Presentation HRDC 32 South Tracy-Bozeman,MT 59715 (406)587-4486-fax(406)585-3538 (800)332-2796 June 16, 2008 P.O.Box 1530- Livingston,MT 59047 (406)222-0896-fax(406)222-1232 Mayor Kaaren Jacobson (800)289-0896 Bozeman City Commissioners P.O. Box 1230 Bozeman, MT 59771-1230 Dear Mayor Jacobson: The HRDC and The Road to Home Homeownership Center would like to thank the Bozeman City Commission for their ongoing support of our homeownership initiative. The result of efforts of both this and past commissions, the City's commitment of Big Box and general funds remains unmatched by other municipalities in the state. The Road to Home would like to take this opportunity to report our successes over the previous year and request funding for the next fiscal year. City funds requested for July 1, 2008 thru June 30, 2009: $40,000 The Road to Home requests $40,000 for ongoing support to the Homeownership Center. The Homeownership Center provides HUD-certified homeownership education classes to approximately 200 households annually. The nine-hour class covers all aspects of the home buying process, from preparing a budget and reviewing the credit report, to understanding the mortgage process and preparing for the closing. The course creates a well-educated buyer who is better prepared for and better able to manage the responsibilities of being a homeowner. The homeownership education course is complemented by individual counseling for both pre- and post-purchase clients. Pre-purchase counseling helps families apply the basic concepts of the group education sessions to their own situation. Post-purchase counseling helps families maintain homeownership by providing foreclosure prevention assistance in addition to advice on refinancing and other homeowner concerns. In addition to education and counseling, the Road to Home also provides access to affordable financing options, including down-payment assistance and low-interest mortgages to help make homeownership more affordable. We work in partnership with lenders, realtors, employers, partner agencies, and other stakeholders to help them better serve the needs of first-time homebuyers. In previous years, the City has provided financial support to the Road to Home to support the homeownership center. We would ask that the City support the homeownership center in 2008 with $40,000. Thank you for your continued support of the Road to Home and its programs. We look forward to continuing our efforts with the City to provide increased homeownership opportunities to Bozeman's families. Sincerely, Tra Menuez Co munity_D oprrientAss iate HRDC provides essential services such as:-Affordable Housing -Case Management -Community Development -Emergency Services -Employment Assistance -Energy Assistance and Conservation -Gallatin Valley Food Bank-Head Start Home Health Care -LocaI Transportation -Community First Fund -Resource Property Management Retired and Senior Volunteer Program. Q Annual Report to the City of Bozeman The Road to Home June 23, 2008 City funds received from July 1,2007 thru June 30, 2008: $230,000 Allocation of funds: Down-payment assistance program $200,000 Homeownership Center 30,000 TOTAL $230,000 *Homeownership Center funds are used for-homeownership education,pre purchase counseling, special programs development,foreclosure prevention efforts, and development of new ficnding sources,for-RTH customers. Down payment assistance funds are loaned to qualifying households as deferred second mortgages through a revolving loan fund. City funds expended from July 1, 2007 thru June 30, 2008: Spending to date: Down-payment assistance administration $ 6,500 Down-payment assistance loans $109,000 Homeownership Center $ 30,000 TOTAL $145,500 Program achievements: From January 1, 2004 thru June 1, 2008, The Road to Home has: • Provided homeownership education to 792 families; • Provided 915 hours of pre-purchase counseling; • Provided foreclosure prevention counseling for 37 families. Of those families, 36 were able to avoid foreclosure through workout plans, forbearance, or pre-sale, 1 home was lost to foreclosure; • Provided 60 first-time homebuyers with down-payment assistance in the form of second mortgages totaling$1,216,306 (zero percent, loan is recovered when homeowner satisfies first mortgage). Twenty of those homebuyers purchased their homes in the City limits of Bozeman using "big box" funding ("Big Box" funds are only used in the City limits of Bozeman, and are available to households earning less than 100% of the Area Median Income).These Ioans contributed over$700,000 in income for local lenders, realtors, insurance companies and title companies and leveraged over$7 million in affordable first mortgages through local lenders. Recipients of down-payment assistance loans have purchased nearly$9 million in real estate, $3.2 million of which is located in the City; • Leveraged $300,000 for education and counseling programs through local lenders, Montana Board of Housing and NeighborWorks; • Been named as a HUD Approved Housing Counseling Agency and awarded a competitive HUD Housing Counseling Grant.