Agenda - 04-11-2000-5c - Laserfiche WebLink

Browse Search

r o i B dP li Established: September 9998 Approved: December 75, 1998 This document outlines the policies governing the expenditure of ,1997 Affordable Housing Bond funds. Only non-profit entities will be eligible to apply for funding under the County's bond program. Non-profits may partner with ,for-profit entities to develop projects, however, in those cases, the non-profit must have the controlling majority in the project (more than 50% interest). A. Loan Program Types Developers and projects would be selected on a Request for Proposal basis subject to established evaluation criteria and targeting goals. The following programs would be implemented using funds from the voter-approved housing bonds and other available resources. Examples of other available resources include: the Community Development Block Grant (CDBG) Program, HOME Investment Partnerships Program, NC Housing Finance Agency Programs, as well as local general fund contributions. 1. Exis~ng_Housing Programs - Target Funding: 33% or $594,000 All Existing Housing Program activifies should be complefed wifhin three years of funding award. Bond fund recipienfs will be required fo submif a status report to the County each year during project imp/emenfation. Any requests for time extensions will be granted at the discretion of the Board of County Commissioners and must be submifted of least six monfhs prior to fhe deadline date.. a. Affordable Housing Loan Program The focus of this homeownership program would be direct assistance to eligible borrowers. An eligible homeowner is one that has not owned a home.in the past three (3) years. Income-eligible borrowers would be pre- qualified for first and second mortgages by a local housing non-profit agency with the cooperation of local lenders. All prospective homebuyers would have to complete acounty-approved homebuyer education program prior to receiving approval to participate in the program. The County would provide a "pre-commitment" letter to the .borrower, who could then purchase a standard home available on the market that they could afford and that sold for less than the FHA maximum sales price for this area. The eligible borrower must provide a minimum of $750 cash contribution to this transaction. - b. Rehabilitation of Substandard Housing -Second .Mortgage This program would provide direct assistance to eligible homeowners and 501(c)(3) non-profit organizations which own rental property for rehabilitation of units with code violations.