Agenda - 12-07-1999 - 9c - Laserfiche WebLink

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Current Cou Programs 4 There is not a current established methodology for evaluating past affordable housing projects in .the County in terms of how long-term affordability has been.achieved. In reviewing the current programs. below, past activities have been reviewed to determine what has occurred with the initial homebuyers and the units that they originally purchased with the assistance of public subsidy. It should be noted. that the County. began a second mortgage program for first-time homebuyers in 1992, thus, the review covers a seven year period. It is recommended that in the future, a formal methodology should be established that provides detailed tracking of program beneficiaries to determine the continued impacf of these projects on the county's goal of preserving affordable housing in the community. This system should also require private, for-profit and/or non-profit agencies to provide long-term monitoring of affordable housing projects that receive public subsidy and report their findings to the County on a periodic basis. HOME Investment Partnership Program Since 1992, the County has utilized HOME Investment Partnership Program funds from HUD to assist families become first-time homebuyers. This funding has primarily been in the form of a homebuyer subsidy made directly to or on behalf of .the homebuyer. The subsidy includes all or a portion of the downpayment, closing costs, or the financing for the balance of the .property purchase price and rehabilitation where applicable. The subsidy averages $15,000 per family that allows potential buyers to purchase property in the County by obtaining a lower cost or smaller first mortgage. Approximately 47 families have been assisted to date. The HOME subsidy has been provided in the form of an interest free, deferred loan for a period of 20 years which is considered the period of affordability. The loan is not repaid during the 20 year period unless the property is sold. If the property is not sold, the loan is forgiven at the end of the 20 year term. If the property is sold during the 20-year period the loan becomes due and the full amount of the HOME subsidy must be repaid from the proceeds of the sale. However, if the property is sold to a subsequent qualifying first-time homebuyer, the subsidy is transferable to the new buyer. If the property is not sold to a first-time homebuyer, the HOME subsidy repayment is returned to the County and must be used to assist another low-income buyer. "The seller is able to retain any proceeds from. the sale above and beyond the repayment of the first and second mortgage repayments. Since 1992., of the 47 families assisted with home purchases, approximately. four (4) families have sold their homes to non-qualifying families and been required to repay the subsidy. Community Development Block Grant (CDBG) Program Since 1996, the County has utilized Small Cities Community Development Block Grant Program funds to assist families become first-time homebuyers. This funding has primarily been in the form of a development subsidy that is an .investment of funds in the acquisition, construction, and/or rehabilitation of the project prior to the initial sale to the first-time homebuyer.. The subsidy has then been converted to a homebuyer subsidy to the. subsequent homebuyer. The subsidy averages $13,000 per family. Approximately 17 families have been assisted to date. The subsidy has been provided in the form of an interest free, deferred loan for a period of 20 years which is considered the period of affordability. The loan. is not repaid during the 20 year