Municipal Housing

Governing Board

Communication:

03-508

Agenda:

October 20, 2003

Subject:

Sale of Public Housing Single-Family Unit – 205 SE Livingston

Type:

Resolution

Receive/File

Submitted by:

Michael Matthes

Acting Housing Services Director

Item – MHGB ____

Office of the City Manager

City of Des Moines, Iowa

Synopsis —

Authorization to sell a public housing single-family unit to an eligible buyer.

Fiscal Impact —

Revenue derived from the sale of the property goes into the Section 5(h) Operating Budget to cover program costs.  The Housing Services Department will net approximately $64,320 after seller costs are paid.  The second mortgage in the amount of approximately $31,680 is, by program guidelines, held in abeyance for seven years.  If the owner goes the full seven-year term, the second mortgage is forgiven. 

Recommendation —

Approval.

Background —

The Department of Housing Services is a participant in the Section 5(h) Affordable Homeownership Program which was approved on May 30, 2000, by the United States Department of Housing and Urban Development.  Under this program, single-family homes in the public housing inventory are sold to eligible housing program participants.

An eligible buyer has made application with Iowa State Bank for a loan to purchase 205 SE Livingston, Des Moines.

The appraised price of the property is $96,000.  The projected loan amount is $64,320 with a second mortgage in the amount of $31,680.