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HomeMy WebLinkAbout~Master - Lender Agreement for financial participation with regard to CDBG Homebuyer Assistance Housing Program RESOLUTION NO. 13-464 RESOLUTION APPROVING LENDER AGREEMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) HOMEBUYER ASSISTANCE HOUSING PROGRAM FOR THE CITY OF AMES,IOWA WHEREAS, as part of the 2013-14 CDBG Action Plan Program Activities, a Homebuyer Assistance Program is outlined for implementation, and the primary objective of this program is to provide down payment and closing cost assistance to low- and moderate-income, first-time homebuyers; and, WHEREAS,a secondary objective is to sell properties that have been purchased and repaired by the City under the CDBG Acquisition/Reuse Program; and, WHEREAS,the down payment assistance is in the form of a 2%low interest rate loan repaid over a 12-year period in an amount not to exceed$10,000, and the closing cost assistance is in the form of a$2,500 grant; and, WHEREAS,the program targets first-time homebuyers with incomes at or below 80%of the Story County median income limits; and, WHEREAS, staff has been searching for an additional partnership with a local lender that is familiar with the Iowa Finance Authority's Homebuyer Assistance Fund mortgage product(IFA- HAF); and, WHEREAS, this product provides less stringent underwriting guidelines for low and moderate-income households and works collaboratively with our CDBG Homebuyer Assistance Program guidelines; and, WHEREAS, creating a partnership with VisionBank will assist us in accomplishing our program goals to assist low-and moderate-income,first-time homebuyers in purchasing a home;and, WHEREAS,a maj or highlight of the financial agreement is that the participating lender will be responsible for verifying income and other eligibility requirements of the IFA product, and this will greatly reduce staff workload 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 agreement for financial participation with VisionBank in connection with the City's CDBG Homebuyer Assistance Program is hereby approved. ADOPTED THIS 8'day of October, 2013. A. Diane­IkNoss, City Clerk Ann H. Campbell, Mayor Introduced by: Davis Seconded by: Szopinski Voting aye: Davis, Goodman, Orazem, Szopinski, Wacha Voting nay: None Absent: Larson Resolution declared adopted and signed by the Mayor this 8`h day of October, 2013.