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