Columbus, Georgia

Agenda Item #



Columbus Consolidated Government



Council Meeting



09/03/2002



Agenda Report #



TO: Mayor and Council



SUBJECT: HOME Policies and Procedures



INITIATED BY: Community Reinvestment







Recommendation: Approve the attached Resolution to approve the HOME

policies as discussed and outlined below.



Background: The Consolidated Government of Columbus, Georgia receives

funding from the Department of Housing and Urban Development, as an entitlement

city, under the HOME Program. The policies and procedures as written for the

Consolidated Government of Columbus, Georgia has been developed as prescribed

by the Federal Regulations of the Department of Housing and Urban Development.

The Council of Columbus Georgia has reviewed the policies and procedures and

concur with suggested changes. The approval of the above will allow the

programs to proceed to meet the national objective of providing housing for low

and moderate-income individuals and families.



Analysis: A presentation was presented at the August 27, 2002 Council Work

Session. The presentation resulted in the following recommendations to be

submitted for Council Approval:



1. HOMEBUYER PROGRAM



A. $5,000 for down payment assistance with up to $1,000 allowed for pre-paid

(taxes and insurance). Funds can not be used for closing costs.

B. Increase limits from $87,317 to $95,000.

C. Mandatory Housing Counseling (as required by HUD)

D. Mandatory Environmental Assessment (as required by HUD)

E. Issue a Home Buyer Certificate Number upon receipt of Housing Counseling

Certificate and pre-approval letter for lending institution.

The Home Buyer Certificate will be good for 90 days with an extension of 30

days written request (after consultation with lending institutions via email)



2. HOMEOWNERS REHABILITATION



A. Increase re-habilitation amount to $30,000 to correct code deficiency.



1. Deferred for very-low income and 1%, 3% & 5% loan as ?adjusted

gross? income increases.

2. A maximum of $3,000 will be allowed to address non-related code

deficiencies if there are funds remaining from the initial grant or loan.

These funds may be used for the following items:

a. Interior painting

b. Exterior painting

c. Replacement windows

d. Carpet

e. Vinyl flooring (kitchen/bath)

f. Air conditioning



B. Mandatory Environmental Assessment (as required by HUD)

C. Re-Construction will be an option available to homeowners:

The City will partner with Columbus Housing Initiative, CHDO?s, or another

non-profit to make the project happen.

1. If the inspector will certify that all code deficiencies can not be

addressed with the allowed $30,000.

2. A committee will review the inspection report and a code enforcement

officer will verify the work write up prior to any demolition taking place.

3. The City will temporarily relocate the occupants.

4. The City will have the structure demolished.

5. The City will provide $30,000 toward the cost of reconstruction.

6. A life estate can be offered to those persons who do not currently

have a mortgage on their home. All family members of the homeowner will be

involved with the decision making process. The family members and homeowner

will make the decision ?up front? as to whether they will have a security

deed for a life estate, or if the family members will re-pay the loan after the

demise of the homeowner. All family members will sign that they understand

and that they agree with this procedure.



3. RENTAL REHABILITATION PROGRAM:



A. The rental rehabilitation program will be increased to $20,000 per unit.

B. The rental rehabilitation program will be used as a loan at 65% of prime at

day of closing for gap financing.

C. An Environmental Assessment will be performed on each project.



Financial Considerations: The program is financed under the Housing and Urban

Development (HUD) under Entitlement Cities Grant Programs.



Legal Considerations: The development of the Home Policies and Procedures has

followed all requirements established under HUD.



Recommendations/ Actions: Community Reinvestment recommends that the Council

accept this Agenda and adopt the Resolution.