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HomeMy WebLinkAboutPR 18107: REVISIONS TO THE OWNER OCCUPIED HOUSING ASST. REHAB. GUIDELINES ' T INTEROFFICE MEMORANDUM HOUSING & NEIGHBORHOOD REVITALIZATION TO: FLOYD T. JOHNSON, CITY MANAGER FROM: BEVERLY A. FREEMAN, ACTING DIRECTOR OF HOUSING & NEIGHBORHOOD REVITALIZATION DATE: JANUARY 10, 2014 RE: P.R. 18107 REVISIONS TO THE OWNER OCCUPIED HOUSING ASSISTANCE REHABILITATION AND RECONSTRUCTION PROGRAM GUIDELINES RECOMMENDATION: The Housing Division recommends the City Council adopt Proposed Resolution 18107 authorizing revisions to the City of Port Arthur's Owner Occupied Housing Assistance Rehabilitation and Reconstruction Program Guidelines. BACKGROUND: Community Development Block Grant (CDBG) Program funds and HOME Investment Partnership (HOME) Program funds are allocated annually to the City by the U.S. Department of Housing and Urban Development to provide Emergency, Minor, Full Rehabilitation and Reconstruction activities in accordance with 24 Code of Federal Regulations Part 570 and Part 92. The City Council by authorization of Resolution Number 12 -288 has obligated the City to provide owner occupied rehabilitation and reconstruction assistance to qualified low and moderate income persons /families of the city. The following summarizes revisions to the City's Owner Occupied Housing Assistance Rehabilitation and Reconstruction Program Guidelines to be utilized on a case -by -case basis, as recommended by the U.S. Department of Housing & Urban Development: OWNER OCCUPIED HOUSING ASSISTANCE REHABILITATION AND RECONSTRUCTION PROGRAM GUIDELINES • Include Policies and Procedures for setting up and funding activities in the U.S. Department of Housing & Urban Development (HUD) Integrated Disbursement Information Reporting System (IDIS); • Provide clarification; in the event the Owner dies or is unable to reside in the home as his /her principal residence prior to the expiration of the aforementioned fifteen (15) year period of affordability, the Owner hereby agrees and understands that he or she/ his or her estates, whichever is applicable, shall be liable to the City of Port Arthur for the amount of costs expended in the rehabilitation based upon scheduled outlined in the owner Written Agreement and the Owner Occupied Housing Assistance Rehabilitation and Reconstruction Program Guidelines; • Per HUD 92.254 (a)(5)(ii) Recapture provisions may permit a subsequent low income homebuyer /homeowner to assume the existing loan and affordability obligations, if NO additional HOME assistance is provided to the subsequent low income homebuyer; • After foreclosure proceedings have been completed in accordance with the Texas Property Code, the City can permit a new subsequent low income homeowner that qualifies for the Reconstruction /Rehabilitation Program to assume the existing loan and affordability obligations if no additional HOME assistance is provided to the Homeowner, or if the entire original subsidy may be recovered from the original homeowner, the city may enter into a new agreement with a separate affordability obligation with a new qualifying, low- income homeowner who will receive a separate HOME subsidy.The Director of Housing & Neighborhood Revitalization and /or his /her designee, under the direction of the Director of Development Services or his /her designee will have the authority to make the final decision, if the City would have the applicant convey the homeowner's substandard lot, if applicable; and • Update the Designated Authority for the Program and the Grievance Procedures. BUDGETARY /FISCAL EFFECT: No effect STAFFING /EMPLOYEE EFFECT: No effect SUMMARY: The Housing Division recommends the City Council to approve Proposed Resolution 18107 authorizing revisions to the City of Port Arthur's Owner Occupied Housing Assistance Rehabilitation and Reconstruction Program Guidelines. P. R. 18107 01/ 10 / 14—BAF/ DF RESOLUTION NUMBER A RESOLUTION AUTHORIZING REVISIONS TO THE CITY'S OWNER OCCUPIED HOUSING ASSISTANCE REHABILITATION AND RECONSTRUCTION PROGRAM GUIDELINES. WHEREAS, pursuant to the Housing and Urban Development Act of 1974 the Housing and Urban Development awards annual Community Development Block Grant (CDBG) Program funds and HOME Investment Partnership Program funds to the City of Port Arthur for the primary benefit of low and moderate income persons /families in accordance with 24 Code of Federal Regulations Part 570 and Part 92; and, WHEREAS, Community Development Block Grant (CDBG) Program funds and HOME Investment Partnership (HOME) Program funds are allocated annually to the City by the U.S. Department of Housing and Urban Development to provide Homebuyer Assistance Programs in accordance with 24 Code of Federal Regulations Part 570 and Part 92; and, WHEREAS, the City Council by authorization of Resolution Number 13 -346 (authorizing submission of the 2013 Action Plan) has obligated itself to provide owner occupied rehabilitation and reconstruction assistance to low and moderate income persons /families of the city; and, WHEREAS, it is now deemed necessary to revise the Owner Occupied Housing Assistance Rehabilitation and Reconstruction Program Guidelines; and, WHEREAS, the 2013 Program Guidelines are attached hereto as Exhibit "A "; and, WHEREAS, the revised 2014 Program Guidelines are attached hereto as Exhibit "B ". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. THAT the facts and opinions in the preamble are true and correct. Section 2. THAT the City Manager is hereby authorized to implement the revised Owner Occupied Housing Assistance Rehabilitation and Reconstruction Program Guidelines in substantially the same form as attached hereto as Exhibit "B ". Section 3. THAT a copy of the caption of this Resolution be spread upon the minutes of the City Council. READ, ADOPTED AND APPROVED this day of A.D., 2014 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR COUNCILMEMBERS NOES: MAYOR, DELORIS "BOBBIE" PRINCE ATTEST: SHERRI BELLARD, CITY SECRETARY APPROVED FO' FORM: VALECIA TI N •, CITY ATTORNEY APPROVED FOR ADMINISTRATION: FLOYD T. JOHNSON, CITY MANAGER BEVERLY A. FREEMAN, ACTING DIRECTOR OF HOUSING AND NEIGHBORHOOD REVITALIZATION Exhibit "A" will be presented at the Council Meeting