Agenda Item # 3
Columbus Consolidated Government
Council Meeting

September 27, 2016

Agenda Report # 45


TO: Mayor and Councilors

SUBJECT: Allocation of HOME funds for an Affordable Homeownership Program

INITIATED BY: Community Reinvestment Department


Recommendation: Approval is requested to enter into a HOME Written Agreement, between the Columbus Consolidated Government and Neighborworks Columbus, Inc., to award Home Investment Partnership Program (HOME) funds in the amount of $300,000 to administer an Affordable Homeownership Program. The Affordable Homeownership Program will provide first mortgage assistance, gap subsidies, and down payment assistance to assist a minimum of three (3) individuals or families in Columbus who meet the qualifications of the program.

Background: The City of Columbus and Neighborworks Columbus, Inc. has formed this strategic partnership to provide decent, safe, and sanitary housing to low-income individuals and families who are within Columbus, Georgia. Homeownership is a stabilizing factor for communities and families. This program will provide those desiring to become homeowners with the tools and financing needed to achieve their goal. This program will provide a first mortgage, gap subsidy, and/or down-payment assistance to the qualified buyer.

Analysis: The Affordable Homeownership Program will provide income-eligible applicants with first mortgage assistance, gap subsidy and/or down-payment assistance which will enable them to become homeowners. All applicants must meet the minimum qualifications and receive homebuyer counseling through a HUD approved housing counseling agency. Neighborworks will be responsible for qualifying the applicants, reviewing loan packages, and loan servicing. Neighborworks is a local Community Development Finance Institution (CDFI) and is qualified to conduct these activities.

Financial Considerations: The City will provide $300,000 in HOME funds to carry out the program. Any repayments made on these loans will be split between Neighborworks Columbus and the City (70/30), which will allow this funding to be recycled for additional programs. The HOME funding is from prior year grant allocations that were not utilized and will expire if not committed to a project by September 30, 2016.

Legal Considerations: The City Attorney will review and approve the proposed HOME Written Agreement prior to obtaining signatures.

Recommendations: Approve a resolution authorizing the City Manager to enter into a HOME Written Agreement, between the Columbus Consolidated Government and Neighborworks Columbus, Inc., to award Home Investment Partnership Program (HOME) funds in the amount of $300,000 to administer an Affordable Homeownership Program.




A RESOLUTION
NO. ________

A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A HOME WRITTEN AGREEMENT WITH NEIGHBORWORKS COLUMBUS, INC. TO ADMINISTER AN AFFORDABLE HOMEOWNERSHIP PROGRAM AND TO AWARD HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) FUNDS IN THE AMOUNT OF $300,000.

WHEREAS, Neighborworks Columbus, Inc. is a Community Development Financial Institution (CDFI) whose mission is to promote and provide access to fit and affordable housing and build assets for financial independence for all citizens of low to moderate income; and,

WHEREAS, the City of Columbus finds it necessary fund a program to assist low-income individuals and families in finding decent, safe and sanitary housing by becoming homeowners; and,

WHEREAS, Neighborworks Columbus, Inc. has agreed to administer an Affordable Homeownership Program by providing first mortgage assistance, gap subsidies, and down-payment assistance to qualified applicants; and,

WHEREAS, the City of Columbus will provide $300,000 in Home Investment Partnership Program (HOME) funds for the Affordable Homeownership Program; and,

WHEREAS, Neighborworks Columbus, Inc. has agreed to assist a minimum of three (3) individuals or families to become homeowners.

NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:

That the City Manager is hereby authorized to enter into a written agreement with Neighborworks Columbus, Inc., to award Home Investment Partnership Program (HOME) funds in the amount of $300,000 to administer an Affordable Homeownership Program to assist a minimum of three (3) low-income individuals or families in becoming homeowners.
___________________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the _________ day of _____________, 2016 and adopted at said meeting by the affirmative vote of ____________ members of said Council.


Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.



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Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor