Title
Resolution to Allocate $245,000.00 in NSP Funds to Habitat for Humanity of Huron Valley for the Acquisition, Rehabilitation and Resale of Affordable Housing for Low-Income Homebuyers, to Approve the Housing Affordability Agreement, and to Approve the Transfer of Home Loans to Homebuyers Purchasing Homes Through Habitat for Humanity of Huron Valley ($245,000.00 NSP Funds)
Memorandum
Attached for your review and approval is a resolution to allocate $245,000 in Neighborhood Stabilization Program (NSP) funds to Habitat for Humanity of Huron Valley for the acquisition, rehabilitation and resale of affordable housing for low-Income homebuyers and to approve the Housing Affordability Agreement. Habitat will receive up to $60,000 for each house and will leverage about $60,000 in donations, grants and volunteer labor for each house.
Habitat will acquire houses in NSP eligible census tracts, rehabilitate them and resell them to a low-income homebuyer who must provide 300 hours of sweat equity toward the program. Habitat will provide a 0% interest mortgage to the homebuyer that is repaid over 15 - 30 years, depending on the financial situation of the homebuyer. The City will place a mortgage on the house in the amount of the City's funding at the time Habitat purchases the home, which will continue with the homebuyer in second lien position behind Habitat's mortgage. The City's acquisition and resale loan to Habitat shall be a 0% interest, two year, deferred payment loan, with repayment upon sale or transfer of the property before the two year term ends, or transfer of the loan to a homebuyer consistent with the terms of the resolution, contingent upon environmental review and confirmation of NSP program eligibility of each house by the Office of Community Development. The per house allocation of $60,000 may include up to $15,000 in down payment and closing cost assistance for the homebuyer, depending on the total development costs and the homebuyer's fin...
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