MHGB
Communication

Office of the City Manager

 
 

Date

December 17, 2007

 

Agenda Item No.       MHGB4

Roll Call No.              07-

Communication No.  07-737

Submitted by:  Chris M. Johansen, Housing Services Director

 

 

AGENDA HEADING:

 

Approval of Conveyance of 6702 S.W. 15th Street, City-owned Municipal Housing Agency Property, pursuant to Affordable Homeownership Program.

 

 

SYNOPSIS:

 

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

 

 

FISCAL IMPACT:

 

Amount:  $72,360 (net proceeds from sale)

 

Funding Source:  FY 2007-08 Operating Budget, Housing Services, Public Housing, pg. 173, SP350 HSG020000

 

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 $72,360 after seller costs are paid.  The second mortgage in the amount of approximately $35,640 is, by program guidelines, held in abeyance for seven (7) years.  If the owner goes the full seven (7) year term, the second mortgage is forgiven. 

 

 

ADDITIONAL INFORMATION:

 

The Department of Housing Services is a participant in the Section 5(h) Affordable Homeownership Program, which was approved by the United States Department of Housing and Urban Development (HUD) on May 30, 2000.  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 US Bank for a loan to purchase the property. 

 

The appraised price of the property is $108,000.  The projected loan amount is $72,360, with a second mortgage in the amount of $35,640.

 

 

PREVIOUS COUNCIL ACTION(S): 

 

Date:  February 21, 2000 

 

Roll Call Number:  00-508      

 

Action:  Revised Municipal Housing Agency Affordable Homeownership Plan for submission to HUD. (Council Communication No. 00-062). Moved by Hensley to adopt. Motion Carried 7-0.

 

 

BOARD/COMMISSION ACTION(S):  NONE

 

 

ANTICIPATED ACTIONS AND FUTURE COMMITMENTS:  NONE