Columbus, Georgia

Agenda Item # ___1___





Columbus Consolidated Government

Council Meeting



September 13, 2005



Agenda Report # 28



TO: Mayor and Councilors



SUBJECT: Homebuyer Assistance Program (HBAP) Amendment



INITIATED BY: City Manager?s Office

__________________________________________________________________

Recommendation: Approval is requested of a resolution amending the policies

and procedures for the Homebuyer Assistance Program (HBAP).



Background: The HBAP program provides assistance in the form of a

low-interest rate loan deferred until the time of sale, transfer or end of the

affordability period (5 years). The deferred loan will be in the amount of

$5,000 or six percent of the purchase-price of the home whichever is greater.

The maximum purchase price of the home is $95,000 under this program.



Analysis: The Department of Housing and Urban Development (HUD) allows the

participating jurisdiction to establish it?s own policies and procedures as set

forth in the rules and regulations. The local policy can be more stringent

than HUD but they cannot be less stringent than HUD. Council adopted

Resolution #498-02 establishing the policies and procedures for the HBAP

Program. These policies and procedures set the maximum purchase price of a

home assisted under this program at $95,000.



HUD Regulations allow for a maximum purchase price of a home not to exceed 95%

of the median purchase price of the Columbus MSA or FHA Mortgage Limits for the

MSA. The FHA Mortgage Limits of the Columbus MSA is $172,632. Per HUD

regulations, the maximum purchase price of a home cannot exceed $164,000.



Staff recommends increasing the maximum purchase price to $110,000 effective

October 1, 2005. Due to the increasing price of homes in the City, non-profit

organizations and lending and mortgage companies have approached the City in

regard to increasing the maximum purchase price of the homes. They state it is

getting increasingly harder to find homes under the current maximum purchase

price of $95,000.



Financial Considerations: There will be no impact on the operating budget.

Current funding, $420,000 will provide for approximately 80 loans this fiscal

year.



Recommendations: Approve a resolution amending the policies and procedures for

the Homebuyer Assistance Program (HBAP).





A RESOLUTION

NO. _____



A RESOLUTION AMENDING OF THE POLICIES AND PROCEDURES FOR HOMEBUYER ASSISTANCE

PROGRAM (HBAP).



WHEREAS, the Consolidated Government of Columbus, Georgia has received funding

from the Department of Housing and Urban Development for the Homebuyer

Assistance Program (HBAP); and,



WHEREAS, the HBAP Program aims to increase the homeownership rate, especially

among lower income and minority households, and to revitalize and stabilize

communities; and,



WHEREAS, Resolution #498-02 authorized the adoption of the policies and

procedures of the HBAP Program; and,



WHEREAS, the maximum purchase price of a home is $95,000 for the HBAP Program

as established by Council; and,



WHEREAS, the Council of Columbus Georgia wishes to increase the maximum

purchase price for a home assisted under the HBAP Program.



NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:



1. That Section 3 of Policies and Procedures of the HBAP Program for the

Consolidated Government of Columbus, Georgia is hereby amended by increasing

the maximum purchase price of a home from $95,000 to $110,000.



2. The effective date of this amendment will be October 1, 2005.



3. The City Manager is hereby authorized to implement administrative policy

revisions to HUD established adjustments related to the HBAP Program.



Introduced at a regular meeting of the Council of Columbus, Georgia, held the

_________day of _____________, and adopted at said meeting by the affirmative

vote of ____________members of said Council.



Councilor Allen voting __________.

Councilor Anthony voting __________.

Councilor Davis voting __________.

Councilor Henderson voting __________.

Councilor Hunter voting __________.

Councilor McDaniel voting __________.

Councilor Turner Pugh voting __________.

Councilor Rodgers voting __________.

Councilor Suber voting __________.

Councilor Woodson voting __________.



___________________________________ ____________________________

Tiny B. Washington, Clerk of Council Robert S. Poydasheff, Mayor