HomeMy WebLinkAbout~Master - Agreement for Financial Participation in connection with CDBG Homebuyer Assistance Program RESOLUTION NO. 12-255
RESOLUTION APPROVING LENDERS AGREEMENT FOR FINANCIAL PARTICIPATION IN
CONNECTION WITH CDBG HOMEBUYER ASSISTANCE HOUSING PROGRAM
FOR THE CITY OF AMES,IOWA
WHEREAS,as part of the amended 2011/12 CDBG Action Plan Program Activities effective January
2012, a Homebuyer Assistance Program is outlined for implementation, and the objective of the Homebuyer
Assistance Program is to provide down payment and closing cost assistance to low-and moderate-income,first-
time homebuyers; and,
WHEREAS,a second objective is to provide the assistance to first time buyers to purchase properties
that are part of the Acquisition/Reuse Program; and,
WHEREAS,since approval ofthe amendment,staffhas been working with two original partner lenders
to re-create underwriting and program guidelines based on the new loan origination requirements due to the
housing crisis market; and,
WHEREAS, in an effort to test the market for Ames, the following components are being
recommended: 1)down payment assistance;2)affordability assistance(to help reduce the monthly payment);
and, 3) closing cost assistance; and,
WHEREAS, the assistance for Items 1 and 2 will still be in the form of a 2% low interest rate loan
repaid over a 12-year period, and the closing cost assistance will be a grant; and,
WHEREAS,the program will continue to target first-time homebuyers at incomes at or below 80%
of the Story County median income limits; and,
WHEREAS,the partnerships with First National Bank and US Bank will provide mortgage funding;
and,
WHEREAS, a major highlight of the financial agreement is that the participating lenders will be
responsible for verifying income and other eligibility requirements of the program,which will greatly reduce
staff work load and allow more time to be devoted to marketing and conducting homebuyer education seminars.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the
agreements for financial participation with the First National Bank and US Bank in connection with the CDBG
Homebuyer Assistance Program is hereby approved.
ADOPTED THIS 22nd day of May, 2012.
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Diane R. Voss, City Clerk Ann H. Campbell,Mayor
Introduced by: Orazem
Seconded by: Davis
Voting aye: Davis, Goodman,Larson, Orazem, Szopinski,Wacha
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 22nd day of May,2012.