HomeMy WebLinkAboutMINUTES - 11071995 - C82 �y Contra
TO: BOARD OF SUPERVISORS
Costa
•J
County
FROM: Harvey E . Bragdon
Director of Community Development
DATE: November 7, 1995
SUBJECT: HOME Investment Partnership Act Agreement and Loan Documents for
Pittsburg First-time Homebuyer Program
SPECIFIC REQUEST(S) OR RECOMMENDATIONS.(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
AUTHORIZE the Deputy Director, Redevelopment, or his designee to ( 1)
execute a HOME Investment Partnership Act (HOME) Agreement with
Pacific Community Services, Inc. to provide $160,000 in FY 1994 HOME
funds for a project to provide first-time homebuyer assistance to
lower income households in Pittsburg; and (2) execute required loan
documents for this purpose.
FISCAL IMPACT
No General Funds are involved. Funds for this project will come from
FY 1994 HOME funds provided through the U.S . Department of Housing and
Urban Development (HUD) .
BACKGROUND/REASONS FOR RECOMMENDATIONS
On September 13, 1994 , the Board of Supervisors approved the
allocation of Contra Costa FY 1994 HOME funds, including an allocation
of $160,000 to provide first-time homebuyer assistance to lower in ome
CONTINUED ON ATTACHMENT: X YES SIGNATURE: ai �J21
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATIAN OF BO D COMMIT E
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Kathleen Hamm
646-4208 ATTESTED_
cc: County Administrator PHIL BATCHELOR, C� LERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR
Community Development
PCSI via Comm. Developmt. BYq 14
�, DEPUTY
households acquiring existing homes in Pittsburg. The Project will
be implemented by Pittsburg Community Services, Inc. (PCSI) . HOME
funds will be used to implement a shared-equity deferred loan
program to assist an estimated nine lower income households in
acquiring homes in a portion of the City' s Redevelopment Area
(Harbor Street to Beacon, Eighth Street to Santa Fe Railroad
tracks) . City Redevelopment Agency (RDA) funds ($40,000) will
serve as the required HOME match and will be used to provide an
additional two to three loans . Participating households must be
very-low or low-income first-time homebuyers who agree to occupy
the homes as their principal place of residence. Participants must
obtain the maximum feasible first mortgage from a private lender
and provide a 5 percent downpayment. HOME and City RDA funds will
be used to fill the gap between the private lender mortgage, the
downpayment, and the acquisition price. Priority will be assigned
to renter households who wish to acquire their current residence
and households purchasing currently vacant units . A maximum of
$20, 000 in assistance will be provided to each qualified
participating households .
PCSI will be responsible for implementing the first-time homebuyer
program. Services to be provided include the following: program
marketing in a manner consistent with federal fair housing and
equal opportunity requirements; homebuyer education and counseling;
referrals and other assistance to very-low/low-income households in
obtaining first mortgages from private lenders; loan underwriting
and qualification of households for participation in the shared-
equity loan program; and loan processing and servicing. A maximum
of $12,000 in HOME funds will be available for implementation
costs; all remaining HOME ( $148,000) and City RDA funds ( $40, 000)
will be used to provide shared-equity loans .
In addition to this project, the City has committed substantial
resources to the target area for housing rehabilitation and
infrastructure improvements in an effort to improve affordable
housing opportunities and revitalize a declining neighborhood. The
first-time homebuyer project will directly assist lower income
households and further the revitalization objectives through
increased incidence of homeownership and neighborhood
stabilization.
kh/k12/BD94-06