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

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20 Applicant: EmPOWERment, Inc. Project Title: Community Revitalization Program Request for Bond Funds: $270,000 Total Project Costs: $1,012,680 Bond Fund Leverage: 27% bond funds; 73% other funding sources Project Description: EmPOWERment proposes to use $270,000 in Orange County Housing Bond funds to purchase and rehabilitate at least 12 single family houses in Orange County for resale to low - income families. Target Population/Projected Outcome: 12 first time homebuyers with incomes at or below 60% of median income Project Schedule Project Completion - June 2001 Long Term Affordability Vehicle Bond funds will be secured by a 40 year Deed of Trust. If a family sells their home within the 40 year period of affordability, they must repay both the entire principal balance of the second mortgage, plus 21% appreciation on their home. Bond Committee Recommendation The Bond Committee does not recommend this project for funding at this time for the following reason. This program is designed to operate in accordance with the existing Community Revitalization Loan Program currently operated by Orange County on behalf of the Orange County HOME Consortium. At this time, all program activities have been suspended in order to re- examine the guidelines for this program to assure compliance with all federal regulations, to ensure that the Program operates smoothly, and to incorporate "lessons learned ". Specifically, the following issues are under review: a) rehabilitation costs; b) property appraisals; c) property inspections; d) rehabilitation financing; and e) environmental requirements. This review should be completed by the end of the 1999 calendar year. Thus, the Bond Committee decided to postpone a funding recommendation until the review is completed so that the applicant is fully aware of the program guidelines prior to any potential bond award.