HomeMy WebLinkAbout2014-08-25 14-278 ORDERCOUNCIL ACTION
Item No. 14-27
Date: August 25. 2014
Item/Subject: Order, Establishing Down Payment Assistance Program
Responsible Department: Community and Economic Development
Commentary: This order will authorize the City to use CDBG funding to develop a down payment
assistance program for the following: low to moderate income (LMI) persons purchasing a home any
where within the City; and to any one if the home is purchased in the Neighborhood Revitilazation
Strategy Area (NRSA). If approved, the program shall provide up to $5,000 in down payment assistance
for a term of five (5) years for any individual or favnily that purchases a home in the NRSA; or for
individuals and families anywhere in the City at or below 80% of Area Median Income (AMI). The
recipient shall sign a Promissmy `dote and Mortgage Deed (be filed at the Registry of Deeds) as security.
At the end of the five (5) year period, the Mortgage Deed shall be discharged, provided, however that
the individual or family continue to own the home. However, if before the end of the five (5) year
period the recipient sells the property, refinance the property, change title to the property, or no longer
lives In the property as their principle residence, then the entire closing cost assistance amount shall be
repaid in full to the Department.
Additionally, the home being purchased must be inspected by the Department's Housing Rehabilitation
Coordinator based on HUD Housing Quality Standards, (HQS). Any health and safety concerns and/or
Code violations discovered during Inspection shay be teed with documentation provided prior to closing.
The program will be administer -ed by the Community and Economic Development Department.
Tanya Emery
Department Head
Manager's Comments:
This item was reviewed and recommended for apprnv°al by the Business & Economic Development
Committee at Its August 5, 2014 meeting. 21ii (
City Manager
Associated Information:
Budget Approval:
Legal Approval:
Finance Director
City Sokitor
Introduced for
Passage
First Beading
Referral
Page of
14-278
AUGUST 25, 2014
Assigned to Councilor Durgin
CITY OF BANGOR
- - -(TITLE.) ORDER, Establishing --Down Payment Assistance Program
WHEREAS, a Program to assist homeownership would sustain and promote single family
home ownership in Bangor; and
WHEREAS, the Program shall provide up to $5,000 in down payment assistance for
individuals or families at or below 80% of Area Median Income; and
WHEREAS, the term of the agreement shall be for five (5) years and a Mortgage Deed shall
be filed at the Penobscot County Registry of Deeds to secure a Promissory Note.
However, if before the end of the five (5) year period the recipient sells the
property, no longer retains title to the property, or no longer lives in the property
as their principle residence, then the entire closing cost assistance amount shall
be repaid in full to the Department; and
WHEREAS, the home being purchased must be inspected by the Department's Housing
Rehabilitation Coordinator. Any health and safety concerns and/or Code
violations discovered during inspection shall be fixed, with documentation
provided prior to closing; and
WHEREAS, funding for the Program will come from the City's Community Development Block
Grant Program:
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR, THAT
The City Manager is hereby authorized to establish a Down Payment Assistance Program using
CDBG funding. The City will develop the Program for low to moderate income (LMI) persons
purchasing a home city-wide, as well as for anyone purchasing a home located in the
Neighborhood Strategy Revitalization Area.
IN CITY -COUNCIL
AUGUST 25, 2014
MOTION MADE AND SECONDED FOR PASSAGE
MOTION DOUBTED
VOTE; 8-1
COUNCILORS VOTING YES: BALDACCI, BLANCHETTE, CIVIELLO, DURGIN,
GRAHAM, NEALLEY, PLOURDE, SPRAGUE
COUNCILORS VOTING NO: GALLANT
PASSV-/ Q
CITY CLrRK