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HomeMy WebLinkAbout06/07/2011 24 HOME Ownership Programs Recaptured Funds Policy; 2011 Annual Action Plan Amendment 0 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. i 2-S1- For Meeting of June 7, 2011 ITEM TITLE: Consideration of a Resolution to approve an amendment to the City of Yakima 2011 Annual Action Plan to clarify the policy on recaptured funds concerning the HOME ownership programs • SUBMITTED BY: Joan Davenport, Acting Community and Economic Development Director (576 -6417) CONTACT PERSON /TELEPHONE: Archie M. Matthews Neighborhood Development Services Manager (575 -6101) SUMMARY EXPLANATION: The Department of Housing and Urban Development (HUD) has requested an amendment to the City of Yakima 2011 Annual Action Plant to include specific language outlining the policy concerning recapture funds as related to HOME homebuyer assistance programs per HUD regulation 24 CFR 91.220(k)(2)(ii). The Office of Neighborhood Development Services shall submit the following amendment to the 2011 Annual Action Plan and implement within their HOME program the following policy concerning recapture provisions: • The Homebuyer is required to use the home as their principal residence for a minimum affordability period as determined by the HOME program regulations. The Homebuyer shall not sell, rent or dispose of the property at any time before the expiration of the affordability period or discontinue use of the home for principal residence. The event of sale, foreclosure or discontinued use of the home as a principal residence will trigger repayment of the entire HOME loan (recapture). The recapture amount is based on net proceeds from the foreclosure. The net proceeds of a sale are the sales price less non -HOME loan repayments and any closing costs." This proposal was discussed at the meeting of the City Council's Neighborhood Development Committee on June 1, 2011; the committee recommended that this proposal be forwarded to the full Council for approval. Resolution X Ordinance Contract Other (Specify) Funding Source HOME APPROVED FOR SUBMITTAL: V>.... ._--,� ity Manager STAFF RECOMMENDATION: Staff recommends approval BOARD /COMMISSION RECOMMENDATION: Recommended for approval by the Council's Neighborhood Development Committee. • COUNCIL ACTION: RESOLUTION NO. R -2011- • A RESOLUTION approving an amendment to the City of Yakima 2011 Annual Action Plan to clarify the policy on recaptured .funds concerning the HOME homeownership programs. WHEREAS, the City of Yakima is a recipient of Federal HOME funds, which may be used, among other things, to provide homeowner assistance; and WHEREAS, HUD regulation 24 CFR91.220(k)(2)(ii) requires the City of Yakima Annual Action plan to detail recapture provisions , and WHEREAS, the Yakima City Council has determined that an amendment to the Annual Action Plan is needed, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The Office of Neighborhood Development Services shall submit the following amendment to the 2011 Annual Action Plan and implement within their HOME program the following policy concerning recapture provisions: "The Homebuyer is required to use the home as their principal residence for a minimum affordability period as determined by the HOME program regulations. The Homebuyer shall not sell, rent or dispose . of the property at any time before the expiration of the affordability period ® or discontinue use of the home for principal residence. The event of sale, foreclosure or discontinued use of the home as a principal residence will trigger repayment of the entire HOME loan (recapture). The recapture amount is based on net proceeds from the foreclosure. The net proceeds of •a sale are the sales price less non -HOME loan repayments and any closing costs." ADOPTED BY THE CITY COUNCIL this 7th day of June, 2011. ATTEST: Micah Cawley, Mayor City Clerk • • III