Title
Resolution to Launch Housing Connect GSO and Amend Down Payment and Closing Cost Assistance Program Terms
Body
Department: Neighborhood Development
Council District: All
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Stan Wilson, 336-373-2509
Contact 2 and Phone: Cynthia Blue, 336-433-7376
PURPOSE:
City Council consideration is requested to launch a branding of the City’s homeownership initiatives as Housing Connect GSO and to approve updates to the City’s homebuyer down payment and closing cost assistance program to include moderate or workforce housing income limits (as defined for the housing bonds), improved terms of assistance, and additional funds for home purchases in redevelopment areas.
BACKGROUND:
Housing Connect GSO will join homebuyers, homeowners, and City partners through expanded counseling, education, financial assistance, and collaborations to ensure successful homeownership in the Greensboro area. Through these comprehensive homeownership services, the City of Greensboro’s Neighborhood Development Department will empower potential homebuyers to make informed choices from selecting to inhabiting the home.
The new Down Payment and Closing Cost Assistance program will be under the Housing Connect GSO homeownership initiative and will offer the following improved program terms for qualified buyers:
• Address moderate or workforce housing income limits by assisting households of 2 or fewer people with incomes up to 120% of area median income and households of 3 or more people with incomes up to 140% of area median income;
• Increase assistance up to $10,000 per qualified household;
• Provide the assistance as a five-year, forgivable loan at zero percent interest. If the homebuyer remains in the home for five years, the loan will not need to be re-paid. The loan is forgiven at 20 percent for each full year the homebuyer lives in the home;
• Remove the requirement for first-time homebuyer status in redevelopment areas; and
• Offer a $5,000 bonus to homebuyers purchasing in the City’s redevelopment areas.
The proposed changes will be coupled with homeownership counseling requirements, expanded educational opportunities, and coordination with City housing services partners to increase homeownership opportunities throughout the City, with an added emphasis on homebuyer purchase in the redevelopment areas.
Funding of $47,233 is available from the federal HOME Program for eligible purchasers under 80% of area median income and $452,767 from the 2016 Housing Bonds - Workforce Housing for low and moderate income purchasers up to the program income limit as well as the redevelopment area bonus funds.
BUDGET IMPACT:
Funds are currently budgeted and available for Fiscal Year 2018-19.
$ 47,233 Currently available in prior year Federal HOME Program funds 213-9016-03
$ 452,767 Currently available in 2016 Housing Bond - Workforce Housing 483-2201-06
RECOMMENDATION / ACTION REQUESTED:
City Council is requested to approve branding of the City’s homeownership activities as Housing Connect GSO and approve updates to the City’s Down Payment and Closing Cost Assistance program to include moderate or workforce housing income limits, improved terms of assistance, and additional funds for homebuyers purchasing in redevelopment areas.