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Home My WebLink About~Master - Revision to Program Guidelines re: Affordable Housing Program RESOLUTION NO. 01-098 RESOLUTION APPROVING REVISION TO THE DOWN-PAYMENT AND CLOSING-COST ASSISTANCE PROGRAM GUIDELINES IN CONNECTION WITH THE AMES/STORY COUNTY PARTNERSHIP AFFORDABLE HOUSING PROGRAM FOR THE CITY OF AMES, IOWA WHEREAS,City staff,participating cities,and lenders are recommending that an additional revision be made to the Recapture Provision under the Down-Payment and Closing-Cost Program Guidelines in connection with the Ames/Story County Partnership Affordable Housing Program; and, WHEREAS, the revised Recapture Provision would state: • If property is sold in years 1-3, recapture payment of 8%of sales price • If property is sold in years 4-6, recapture payment of 4% of sales price • If property is sold in years 7-10,recapture payment of 2% of sales price At any time if the property is sold to a first-time homebuyer whose total household income does not exceed 110%of the Story County median income limits,the recapture payment would be reduced by 50%. The Operating Agency, on a case-by-case basis, may consider either reducing or forgiving the recapture payment for the subordinate mortgage when there is no likelihood that a sufficient amount of money will be available to repay the Ames/Story County Partnership. WHEREAS,staff feels that this change is beneficial because the recapture is heavier in the early years and gives a greater incentive to remain in the home longer, the recapture amount decreases the longer the borrower remains in the home, there is an incentive to sell to another first-time buyer, and the time frame is increased from seven to ten years. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the aforementioned revision to the Down-Payment and Closing-Cost Assistance Program Guidelines in connection with the Ames/Story County Partnership Affordable Housing Program is hereby approved. ADOPTED THIS 27th day of March, 2001. Diane R. Voss, City Clerk Ted Tedesco, Mayor Introduced by: Quirmbach Seconded by: Wirth Voting aye: Campbell, Cross, Goodhue, Hoffman, Quirmbach, Wirth Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 27th day of March, 2001.