Columbus, Georgia

Agenda Item # ____1 ____





Columbus Consolidated Government

Council Meeting



September 13, 2005



Agenda Report # 28



TO: Mayor and Councilors



SUBJECT: ADDI Program Amendment



INITIATED BY: City Manager?s Office

_______________________________________________________________

Recommendation: Approval is requested of a resolution amending the policies

and procedures for the American Dream Downpayment Initiative (ADDI) Program.



Background: The American Dream Downpayment Initiative (ADDI) was signed into

law on December 16, 2003. ADDI aims to increase the homeownership rate,

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

stabilize communities. The ADDI Program is targeted to the City?s designated

redevelopment Areas. The ADDI 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

$10,000 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 #564-04 establishing the policies and procedures for the ADDI

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, $157,000, will provide for approximately 15 loans this fiscal

year.



Recommendations: Approve a resolution amending the policies and procedures for

the American Dream Downpayment Initiative (ADDI) Program.









A RESOLUTION

NO. _____



A RESOLUTION AMENDING OF THE POLICIES AND PROCEDURES FOR AMERICAN DREAM

DOWNPAYMENT INITIATIVE (ADDI) PROGRAM.



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

from the Department of Housing and Urban Development for the American Dream

Downpayment Initiative (ADDI) Program; and,



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

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

communities; and,



WHEREAS, Resolution #598-04 authorized the adoption of the policies and

procedures of the ADDI Program; and,



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



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



1. That Section 4 of Policies and Procedures of the ADDI 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 ADDI 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