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HomeMy WebLinkAboutR-1993-089 HOPE / Housing / HUDRESOLUTION NO. R-93 89 A RESOLUTION authorizing and directing the City Manager and the City of Yakima to file an application with the Department of Housing and Urban Development for funding for a Hope III Program. WHEREAS, the United States Department of Housing and Urban Development has funds available to cities to assist its citizens in purchasing single family properties held by federal, state, or local governments; and WHEREAS, the City Council of the City of Yakima deems it to be in the best interests of the City that it file an application for funding for the purpose mentioned above, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: R. A. Zais, Jr., City Manager of the City of Yakima, is hereby authorized and directed to execute and file application documents, including all understandings and assurances contained therein, with the United States Department of Housing and Urban Development for funding for the purpose mentioned above; and he further is hereby designated as the official representative of the City to act in connection with that grant request and to provide such additional information as may be required. ADOPTED BY THE CITY COUNCIL this 24th day of August , 993 ATTEST: Mayor City Clerk CITY OF YAKIMA OFFICE OF HOUSING AND NEIGHBORHOOD CONSERVATION HOPE #3 PROGRAM SUMMARY - 93/94 "HOPE 3" proposes to continue a homeownership program that not only offers affordable first time homeownership for low/moderate income families, but saves dwelling units from the community's housing market designated for demolition or removal. The program is designed to accept donations of proposed housing units deemed for demolition or removal because of public or private expansion. Block Grant and Washington State Housing Assistance Program Funds will be used to purchase the lots. A combination of specialty contractors and volunteers will be doing the rehabilitation work. Proposed federally acquired defaulted homes will use the same rehabilitation concept. Approximately twenty homes will be incorporated into the program to provide first time homeownership opportunities to community families with income levels below 80% and above 50% of the federal median income guidelines. Families will be selected from an established waiting list comprised primarily from the previous Hope 3 waiting list. Each family will be prequalified and counseled on housing affordability and program requirements. All families will be required to commit 300 hours of work in the home rehabilitation efforts in lieu of a down payment. They will also be financially responsible for the first year property tax and insurance. Repayment of the moving costs and rehabilitation will be in monthly installments with the land being deferred from repayment until sale or title transfer. Thirty percent of their gross monthly income will be used to pay utilities, taxes, insurance and housing payment costs. Applicants must be a first time homebuyer, have no bankruptcy or felony convictions with -in three years, no credit lien, collection or judgements. The established area for this project will be east of 16th Avenue within the city limits. For the past sixteen years, this section of the city has been used as an urban renewal area and has the highest number of low income families, minorities and oldest housing stock. The program will be established as a partnership between the Housing Foundation (HF) and City of Yakima Office of Housing and Neighborhood Conservation (OHNC). This partnership will be established through a Memorandum of Understanding between the parties outlining the responsibilities of each party. OHNC will develop the leadership role and be responsible for the approval of land acquisition, accounting and family acceptance. The Housing Foundation will do cost estimates, identify land, move homes, coordinate volunteers and contractors and oversee rehabilitation. After rehabilitation, ownership will be transferred to the familly in fee simple title. This transfer will be part of the housing counseling required by the program covering home maintenance, budget counseling and title documents. The program will be called "eve a E ouse - Create a Home". The initial program has been established and has a two year history of success in the development of seventeen (17) homes.