Laserfiche WebLink
Housing Memo <br />October 28, 2010 <br />Page 4 <br />4. Revolving loans to homeowners that target specific types of improvements. The <br />City could control eligibility criteria, be the primary lender, provide loan capital <br />and pay underwriting fees. The typical loan for this type of program is $20,000 to <br />$25,000 and includes a very attractive interest rate. Underwriting criteria would <br />need to be determined but either CEE or GMHC would administer the program. <br />6. Provide a program of last resort for homeowners who can't qualify for a <br />conventional loan, but need very basic repairs (i.e. roof, windows, HVAC, etc.). <br />These loans are typically deferred until the home is sold and include a nominal or <br />zero -interest rate. Underwriting criteria would have to be determined but these <br />loans would be smaller and possibly range from $10,000 to $15,000. <br />7. Homebuyer assistance to buyers purchasing a foreclosed home. Funds could be <br />used for down payment assistance or home repairs. The maximum loan amount <br />would be $2,500 to $5,000. <br />Staff would recommend hiring a program administrator, which could then assist the City <br />in designing the most cost-effective program. <br />Key Policy Questions <br />1. Should the City establish income limits or keep the City -funded program open <br />to all residents? Many cities use an income restriction that is based on the <br />Metropolitan Area median income and is adjusted based on household size. <br />2. Should the City target the City -funded program on specific improvements? <br />One suggestion was to focus on exterior improvements only. It might be <br />worthwhile considering HVAC, energy efficiency, life/safety, and structural <br />repairs. <br />3. Should the City set aside pool of funds for residents that cannot qualify for a <br />loan or other financial assistance? A loan program may not be attractive to <br />someone who does not have the income or wherewithal to repay it. <br />4. How much money should the City invest in the program? One suggestion was <br />$2.OM out of the city's Community Reinvestment Fund. S <br />A) Proposal by GMHC <br />B) Various GMHC information materials <br />C) Proposal by CEE <br />