HomeMy WebLinkAbout2014-08-25 14-279 ORDERCOUNCIL ACTION
Item No. 14-279
Date: August 25, 2014
Item/Subject: Order, Establishing Closing Cost Assistance Program
Responsible Department: Community and Economic Development
Commentary: This order will authorize the City to develop a closing cost assistance program for low
to moderate income (LMI) persons utilizing Community Development Block Grant Funds. The program
-- - shall provide up to $3,000 in closing cost assistance for individuals or families at or below 80% of Area
Median Income (AMI) for a term of five (5) years. The recipient shall sign a Promissory Note and
Mortgage Deed (to be filed at the Registry of Deeds) as security. At the end of the five (5) year period,
the Mortgage Deed shall be discharged. However, if before the end of the five (5) year period the
recipient sells the property, refinances the property, changes 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. The program will be administered through Community and Economic
Development.
This item was reviewed and recommended for approval by the Business & Economic Development
Committee at its August 5, 2014 meeting.
Tanya Emery
Department Head
Manager's Comments:
CA lIA. (4, /
City Manager
Associated Information:
Budget Approval:
Legal Approval:
&ntroduced for
Passage
First Reading
Referral
L
Finance Director
Page of
14-279
AUGUST 25, 2014
Assigned to Councilor Civiello
CITY OF BANGOR
-- (TITLE.) ORDER, -Establishing Closing Cost 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 $3,000 in closing cost 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, 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 Closing Cost Assistance Program using
CDBG funding. The City will develop the program for low to moderate income (LMI) persons
purchasing a home city-wide.
IN CITY COUNCIL
AUGUST 25, 2014
MOTION MADE AND SECONDED FOR PASIIAGE
MOTION DOUBTED
VOTE: 8-1
COUNCILORS VOTING YES: BALDACCI, BLANCHETTE, CIVIELLO, DURGIN,
GRAHAM, NEALLEY, PLOURDE, SPRAGUE
COUNCILORS VOTING NO: GALLANT
PASSED
CITY CLERK