Memorandum of Understanding Between Neighborworks Columbus and Columbus Consolidated Government for "Downpayment Assistance Partner Program".
Initiator
Amy Carbajal, Community Reinvestment Department
Recommendation
Authorize the City Manager to execute the Memorandum of Understanding Between \n \n the Consolidated Goverment of Columbus, Georgia and Columbus Housing \n \n Initiative, Inc. D/B/A Neighborworks Columbus to initiate the Downpayment \n \n Assistance Partner Program.
Approval
Pending
Background
The City of Columbus has recently seen significant reductions in HUD
Entitlement funds which are used to provide downpayment assistance to first
time, income qualified home buyers. As a result of these funding reductions,
the downpayment assistance program exhausted all funds for the current fiscal
year. Neighborworks Columbus, through a Financial Allocation from the
Community Development Financial Institution Fund (CDFI), has allocated $150,000
to the City's downpayment assistance program to provide funds for downpayment
assistance to finish the fiscal year. In an effort to ensure that low income
households are afforded the opportunity to purchase a home and the City's real
estate market does not suffer any further hardships, Neighborworks and the City
of Columbus will enter into a Memorandum of Understanding to establish the
Downpayment Assistance Partner Program.
This program will offer up to $10,000 in downpayment assistance to low income
households in Columbus. The Community Reinvestment Department will underwrite
the loan for a small fee. Once the loan is closed, it will transfer to
Neighborworks for the term of the loan. This provides a small revenue source
for the Department and continues a valuable program in the City.
Analysis
This is in the best interest of the City for economic reasons. It is also in
the best interest of the City's low income population.
Financial Considerations
This provides a small revenue stream for the program and processing time and
efforts will be equivalent to the City's HUD Downpayment Assistance program.
Projected Annual Fiscal Impact Statement
This will have a positive impact on the Community Reinvestment Department
budget.
Legal Considerations
The city will have no responsibility to service the loan once it is issued. It
will be transferred back to Neighborworks Columbus. The City is only
underwriting the Downpayment Assistance Loan on behalf of Neighborworks.
Recommendations/ Actions
Authorize the City Manager to execute the Memorandum of Understanding Between
the Consolidated Goverment of Columbus, Georgia and Columbus Housing
Initiative, Inc. D/B/A Neighborworks Columbus to initiate the Downpayment