Title
Resolution to Allocate $152,000.00 in HOME Funds to Habitat for Humanity of Huron Valley for the Land Acquisition and Construction of 1718, 1720 and 1724 Enclave Lane and to Approve the Affordable Housing Covenant ($152,000.00 HOME Funds)
Memorandum
Attached for your review and approval is a resolution to allocate $152,000.00 in HOME Funds to Habitat for Humanity of Huron Valley to acquire three vacant lots and construct three units of housing for low-income homebuyers. The allocation will be divided evenly among the three lots. Habitat has joined the Washtenaw Homebuyer Education Partnership and will provide financial literacy and home maintenance classes to the homebuyers. Habitat has agreed to place a resale restriction on the property to preserve the property as permanently affordable and thereby, also reducing the annual property tax burden on the homebuyers.
The total budget is $552,974.00. The request for City funds constitutes 27% of the total project costs. Habitat has secured a $30,000.00 SHOP grant, $9,000.00 Michigan Energy Grant, and the remaining funds will be donated by sponsors. Consistent with all Habitat projects, the homebuyers and volunteers will provide the labor and many donated materials will come from local businesses.
The project is consistent with the City’s Consolidated Strategy and Plan. The targeted owners are 30% - 60% AMI. The City Attorney’s office will review the legal and contractual documents to ensure that Habitat will comply with the requirements in the HOME regulations. It will be the responsibility of the Office of Community Development to monitor agency compliance with these regulations.
The Office of Community Development recommends City Council approve the $152,000.00 HOME loan as a 0%, five-year loan to be converted to a grant upon sale to an income-qualified homebuyer. Effective April 1, 2008, the HOME budget reflects $416,044.00 in uncommitted and available funds. Consistent with HOME Program requir...
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