Title
Resolution to Approve Contracts with the Housing Bureau for Seniors and the Washtenaw County Treasurer for a Mortgage and Tax Foreclosure Revolving Loan Fund ($80,000.00 General Fund Reserves, $10,000.00 AAHTF) (8 Votes Required)
Memorandum
The Office of Community Development (OCD) is requesting that City Council approve $15,000 in FY 09 General Fund Reserves and $10,000 in FY 09 Ann Arbor Housing Trust Funds to the Housing Bureau for Seniors for a Mortgage and Tax Foreclosure Revolving Loan Fund and $65,000 in FY 09 General Fund Reserves for a Mortgage Counselor. The OCD is collaborating with the Tax and Mortgage Foreclosure Taskforce which includes the Washtenaw County Treasurer’s Office, Legal Services of South Central Michigan, MSU Extension, the Housing Bureau for Seniors and numerous other local non-profits, private lenders and realtors to address the current mortgage foreclosure crisis.
On February 19, 2008 City Council approved a resolution (R-08-0092) to allocate funds to Legal Services of South Central Michigan and the Washtenaw County Treasurer as described below. MSU Extension will continue to house the Mortgage Counselor, however, the Washtenaw County Treasurer’s office will be the employer to minimize the administrative burden on MSU Extension.
Washtenaw County had 1,433 mortgage foreclosure first insertions in the legal news and 703 sheriff’s sales in 2006, and 2,194 first insertions and 1,151 sheriff’s sales in 2007. Michigan has one of the highest foreclosure rates in the nation. Fannie Mae has written off a greater volume of loans in Michigan than any other state. As homes are vacated and people move out of state, the housing values drop. The tax impact on local municipalities is dramatic. Since 1996, Washtenaw County’s annual taxable value growth has been 5% to over 8%. The 2008 taxable value growth is expected to be 0% or negative. The City’s 2008 taxable value is also expected to stagnate at 0%. In 2007, 40% of the mortgage...
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