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Home My WebLink About1995 Resolution No. 025• • RESOLUTION NO~ SERIES OF 199S A RESOLUTION SUPPORTING THE AAAPAHOE COUNTY HOUSING AlITHORITY'S FIRST-TIME HOMEBlNER PROGRAM. WHEREAS , d·1 l\rarMoc County Housing Authorit y nnct 11".r. Community Dcvclopri :cnt Serv ices Division have de\el~ ~ progrnm in an effort to prov ide :ffordab ie h1...,.IS:ng t.o stable low and mod.:rate income residents in th\! 'C'ity of Englewood, Col0r'3c1"'\_ an d WHEREAS , th e Fu>t-Time Homcbuyer Program ut il1i.,, HO ME Pnnncrship Funds from th e United States Department of Housis ~ and Urban De velopment; and WHEREAS , the !"'~1-Time Home.buyer Pro£>•:-::.; JJministtred through the Ampahoe County Housing Authority; ana \VH[::Ji AS, the progr.,m must meet all fedcr,J requirements of the HOME Partnership Funds; and \I .. .:RhAS, the Cit y Co11ncil of the City of Engle11,ood realizes that HOME Funds will be used as gap financ-u~ for homcownCt! ,.rwi ... 1,,ying other mortgage products as th.::ir primary source of funding : NOW, THEREFORE. BE IT RESOL YEO BY THE CITY COU 'CU. OF THE CITY OF ENGLEWOOD, COLORADO, THAT: SwiM..l. The Ci1y Council of the City of Eng lewood, Colorado suppons the Ampahoc Cou nt) Housing Authority's First-Time Homcbuycr Program os an cffon 10 provide affordable hou si ng to stable low and moderate incom e residents in the City of Eng lewood. Colorado . ADOPTED AND APPROVED th is 27th da y of February , 1995. -~tfttt.- Loucrishia A. Ellis, Cit y Clerk I, Lo ucruhia A. Ellis, City~CJerk fo r the City of Engle wood, Colorado, he reby certify the above is a ~, ·~," ""''"~" "•-"' "'"" '"'· ~ ct~ Loucrishin A. Ellis • • DATE Fr.bruary 27, 1995 COUNCIL COMMUNICATION AGENDA ITK'1 1 0 a -iii SUBJECT Resolutir,n Supporting Arapahoe Caunty Hou sin& Auth1Jrity 's Home- Buyer Progr-.un INITIATED BY: STAFF SOURCE: Community Development Dei;arnnent Lee Merkel, Director COUNCIL GOAL AND PREVIOUS COUNCIL ACUON: Regional Cooperation and Housing . No previous Council action . I &;COMMENDED ACUQN:. Approve a Resolution supporting the Arapahoe County Housing Authority's First-time Home Buyer Program . BACKGROUND. ANALYSIS. AND ALTERNATIVES IDENTIFIED: Ar a,~al:oe County Housing Authority (ACHA) has developed a first-time home buy er program for !cw and moderatc income midents of the county (excluding Aurora). The City of Englewood and its re sidents are included in this program. ACHA has secured first mortgage moneys from Colo• rado Housing and Finance Authority. The ACHA will provide a deferred second mortgage, in an amount up to $14 ,999 that will be due ifthe,property is sold, transferred, or no longer used as the primary residence . Purchase price limits are $100 ,000 for existing units, and Sill ,600 for new construction . Toe Program is anticipated to serve 20 • 25 home buyers during 1995 . The esti- mated staning date is May, 1995 . See the attached Program Summary for additi,onal information . FINANCIAL IMPACT: None LIST OF ATTACHMENTS: Resolution Program Summary FEB-9-95 nru e:47 AAAP CTY cctl_ SVCS FAX lfJ, 3037944~71 _P.04 • • • ~ABO!: COON'1'Y llOOSDlG ADTBORI'l'Y FnS'l'-'f:1:ME BOHl:Btm!:lt ~ .PW'JGRAJf .stJJdMARr r ,,,~m•~'T ,,,~Mil: Arapahoe C~=ty BCHE First-Time Homebuyer Program ~l:!'. .. !: .. ,:.,.ING AGrNc;Y ,o Arapahoe County Hous i ng Authority Pl7RPOS.:i The purpose ~I this program is to increase the oppor·~\lll1 tias for low-an.:i 1110derate-in come persons to ach.leve home ownership in .Al:-apahoe co_unty. Pll()J&;T I:ESCII.IPXICIIT: The Arapahoe County Bou:,ing Au tho r ity is currently working with Colorado National Mortgage to implement the First-Time Homebuyer Program. The Program will operate throu7hout Arapahoe county (excluding Aurora) , This program will increase the supply of affor..!al:>le housing in Arapahoe County through sound and flexible underwri ting criteri a. The participating lender will originate the first mortgage in a fully amortized 30 yea:: fixed-rate loan. Araoahoe County has secured a $1,389,000 sei:-aside from the Colorado Housing and Fi.."1ance Authority (CHFA) fNIII its 1995 Recycled Funds Program. The CEFA funds will be used ac, first mortgages in the Fi rst-Tillle Homebuyer Program. The Ara~ahoe County Housing Authori t y will provide a deferred second mortgage in an amount up to $14 ,999 fr om i ts 1994 and 1995 HOME allocations from the u.s. Department of Housing and Urban Development. This second mortgage will be due if the property is sold, transferred, or no longer used as the primary residence. The Arapahoe County Houa i ng Authority will dedicate approximately ~400,000 of HOME funda toward the program. Colorado National and the Arapahoe County Housing Allthority will work to develop a program which increases home ownership opportunities in the most efficient way. The CHFA funds will allow for rehabilitation of a housing unit under the Federal Housing Administration (FHA) 203 (kl program guidelines . The FHA 203 (k) program allows a homebuyer to purchase a home and escrow money at the loan closing to fund repairs on the structure . The homebuyer then makes one payment each month which i n cludes the mortgage and the repairs. For those homebuyers no t requiring rehabilitation, alternative fin ancing is being developed . The Arapahoe County Housing Authority : ,, int.:i rested in working with the selected lendar to develop a "gram where the homebuyer is required to provide no more than 31 the purchase pri ce toward s down payment and clos i ng costs, This • may include accessing existing program8 such as n!A 203(bl, FNMA communit-y Home Buyer's Program, rHLMC Affordable Gold or the part.ici.,.,.~ing lender's porttolio product. Qualified homebuyers will be residents of Arapahoe County (excludin1 Aurora) , Persons who are employed i n Arapahoe County may a.lso bee igible for the program, subject t o County ComrJ.ssioner approval. Participants will have incomes at or below 801 of the Den·ver area median income as defined by the U.S. Departinent of Hor,sing and Urban Develn:;;ment, All potential applicants will complete a first-time homebuyer counseling workshop which ,iill provide them with the skills and knowledge necessarr to bec0111e reeponsibl e and informed bomebuyers and owners. Counse ing will be pro·vided by Colorado National and/or an outside agency depending on the homebuyer's need. Purchase price limits are $100,000 for existing unit s and $111,600 for newly constructed uni t s. The program will be limited to single- family homes, condominiums and townhome units. It i:3 antici pated that 20-25 homebuyers wUl be served by the program in 1995. The estimated start date fol' the program is late April or early May 1995. In the event that dema,:-:1 for thi s progr!llll exceeds avai l able funds, a lottery system wi11 b e set up to aid in the selection of participant s. PRIVATE lll:lRl'CiAG!: INSURAllCX COVERAGE: All loans whos e l o an-to-val ue ratio e xceeds 801, and are not illA loans, will be insured by one of CHFA • s approved private mo..:tgage insurance companies with the requ ired coverage. FAIR BOUSIRG: The Arapahoe County HousinlJ Authority i s colll!!l..itted to provldlng affordable housing choices to all persons regardless of race, color, religion, sex, marital status, familiar statu&, national ori gin, age, or handicap of the applicant . Arapahoe County will abide by all equal opportunity requirements outlined in 24 Code ot Federal Regulations (CFR) Part 92, The Arapahoe Co unty Housing Authority will also market housing programs to t hos e persons who are least likely to apply. Persons least likely t o apply are those not of the same race and/or ethnicity of the majority of the residents in the area in which the program operates. To accomplish this goal, the First-Ti.Jlle Homebuyer Program. will be marketed in areas o f Arapahoe County which contain d i verse racial and ethni c populations. 2 -----·· -· ---···· -· ----·