Agenda Item # 1
Columbus Consolidated Government
Council Meeting
03/26/2013
Agenda Report # 45
TO: Mayor and Council
SUBJECT: Memorandum of Understanding - Neighborworks Columbus
for "Downpayment Assistance Partner Program"
INITIATED BY: Amy Carbajal, Community Reinvestment Department
Recommendation: Approval is requested to execute a Memorandum of Understanding
with Columbus Housing Initiative, Inc., D/B/A Neighborworks Columbus to
initiate the Downpayment Assistance Partner Program.
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 Government of Columbus, Georgia and
Columbus Housing Initiative, Inc. D/B/A Neighborworks Columbus to initiate the
Downpayment Assistance Partner Program.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF
UNDERSTANDING WITH COLUMBUS HOUSING INITIATIVE D/B/A NEIGHBORWORKS COLUMBUS TO
INITIATE THE DOWNPAYMENT ASSISTANCE PARTNER PROGRAM.
WHEREAS, the City has extensive knowledge, skill and experience in implementing
and developing single family down payment assistance programs (DPA) in Columbus
for families at or below 80% Muscogee County Metropolitan Statistical Area
median income level (?AMI?); and,
WHEREAS, NeighborWorks Columbus has applied for and received a
Financial Allocation from The Community Development Financial Institution Fund
(the ?CDFI Fund?) of the United States Treasury, that can be used for single
family DPA programs for families at or below 80% AMI; and,
WHEREAS, to facilitate the City?s administration of the City?s DPA Program,
NeighborWorks Columbus will fund a pool of money (the ?Funding Pool?) to the
City and the City will use the Funding Pool to make second loans to qualifying
homebuyers under the guidelines of the City?s DPA Program and subsequently
assign the DPA Loans to NeighborWorks Columbus within 30 days after closing the
DPA Loans as set forth in the Memorandum Of Understanding.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the City Manager is hereby authorized to execute a Memorandum of
Understanding with NeighborWorks Columbus as outlined in the attached
Memorandum of Understanding.
___________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the _________ day of _____________ 2013, and adopted at said meeting by the
affirmative vote of
_____________ members of said Council.
Councilor Allen voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
__________________________ ______________________
Tiny B. Washington, Clerk of Council , Mayor
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