Columbus Consolidated Government
Memorandum
TO: Mayor and Councilors DATE: January 23, 2007
FROM: Isaiah Hugley, City Manager SUBJECT: HOME Buyer Assistance
Program (HBAP) Amendment
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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 $110,000 under this program that was established by
resolution #426-05.
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. 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 $200,160. Per HUD regulations, the maximum purchase price of a
home cannot exceed $190,152.
Due to the increasing cost of providing affordable housing, NeighborWorks
Columbus has requested the maximum purchase price of the homes be amended.
They have proposed the maximum home price be tied the FHA Mortgage Limits for
Columbus. By tying the increase to the national mortgage limits, any
subsequent changes would then automatically be reflected in our local limits.
Based upon the request, staff has reviewed the HBAP program. Staff recommends
an amendment to the policies and procedures that would establish the maximum
purchase price of a home at 62% of the FHA Mortgage Limit of the Columbus MSA.
Any subsequent changes would then automatically be reflected in our local
limits. For the current year, the maximum purchase price would increase from
$110,000 to $124,099. Resolution #426-05 provides authorization for the City
Manager to make administrative changes to the policies and procedures.
If you have any further questions and/or concerns please contact me by January
30, 2007.
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