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HomeMy WebLinkAboutMINUTES - 06111985 - 1.39 TO: BOARD OF SUPERVISORS ORS Contra FROM: Anthony A. Dehaesus Costa Director of Community Development DATE: May 20, 1985 County SUBJECT: Authorizing Submittal of an Application for the California Homeownership Assistance Program, and the Execution of a Standard Agreement and Documents Related-Thereto SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS WHEREAS, the County of Contra Costa hereinafter referred to as "County" is authorized to apply -to the Department of Housing and Community Development for funding under the California Homeownership Assistance Program; and WHEREAS, pursuant to Section 50775, et. seq., of the California Health and Safety Code, the California Department of Housing and Community Development (hereinafter referred to as "State") is authorized to provide funds for the California Homeownership Assistance Program; and WHEREAS,*the, County of.-Contra Costa, a local public agency organized under the statutes of the State of California, is eligible to receive said funds; and 'WHEREAS, the Department.of Housing and Community- Development may award the County of Contra Costa a.. conditional funding commitment under the California Homeownership Assistance Program. NOW, THEREFORE,.BE IT ORDERED that the submittal of an application for the *California Homeownership Assistance Program is authorized, and that the County of Contra Costa is hereby authorized to enter into an agreement with the State to'accept a financial commitment in an amount not to exceed. $400;000 for the.purpose of providing homeownership assistance loans for new housing; and BE IT FURTHER -ORDERED that the Chairwoman., or Director of Community Development is hereby authorized to execute the Standard Agreement and any related documents on behalf of the County.of Contra Costa. BACKGROUND .The California Homeownership -Assistance Program .(CHAP) provides equity sharing second mortgage loans to assist lower income households in purchasing homes. . The CHAP program currently has funds available. A Request for Proposal recently issued by the State Department -of Housing and Community Development invites applications from local government to assist in projects where households would be purchasing- manufactured housing. Nova Housing Systems, Inc. a Richmond based developer, desires to participate in the program for manufactured homes that would be located on scattered,sites within the unincorporated North Richmond community. The attached application requests a loan commitment of $400,000 for the North Richmond sites. This request would.supplement a previous co Imitment of $135,900 in CHAP funds for North Richmond. , ru CONTINUED ON ATTACHMENT: YES SIGNATU, Z� RECOMMENDATION OF COUNTY ADMINISTRATOR R MENDAT/N OF 130ARb COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS A_ UNANIMOUS (ASSENT I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ASSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Orig: Community DevelODment ATTESTED 0 County Administrator PH! BATCHELOR, 'CLERK OF THE BOARD OF State HCD via Community Development Nova Housing via Community Development SUPERVISORS AND COUNTY ADMINISTRATOR M38217-83 By DEPUTY Board of Supervisors page two May 20, 1985 Under the CHAP program, the State becomes a partner with a homebuyer who cannot otherwise afford to buy a home. For example, a lower income household can afford a $50,000 home with a $3,000 downpayment and a $47,000 mortgage, but homes in the community sell for $60,000. In order to get the price to the buyer down to the level they can afford, i.e., $50,000, the State would effectively purchase a $10,000 share in that home. The State would have a one-sixth share in the home. Upon sale of the home the State would share in the proceeds of the sale in proportion to theirinterest in the property. I Administrative responsibilities of the County under the CHAP program are minimal. The County would agree to make provision for homeownership counseling to the buyers. The County already has fair housing agencies under contract to provide such counseling. In addition, Nova Housing Systems desires to be actively involved in the provision of counseling. The County would not be involved in the preparation or approval of loans and loan documents. Required servicing of the loans would be a function of the lender. The submittal of a successful application for the CHAP program will allow the County to further address its housing needs and Housing Element goals. Further, the assistance for homeownership would provide a valuable stabilizing influence to the North Richmond community, and complement other activities designed to improve the quality of life in the community.