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DRAFT <br />rehabilitate and sell residential properties to income qualified homebuyers. In order to <br />leverage the NSP funds, the successful candidates will be required to have established <br />lines of credit they can utilize for the acquisition component of the programs. For <br />program four, rental housing acquisition and rehabilitation, the successful candidates will <br />be those with significant experience in the acquisition, rehabilitation and long-term <br />management of affordable rental housing. In addition, they will have a demonstrated <br />record of success in obtaining and using multiple funding sources for affordable rental <br />projects. This program will be used by the City to meet its very low-income obligation <br />under NSP regulations. <br />In order to incentivize intermediaries to move as quickly as passible, the City anticipates <br />selecting more than one intermediary for each of these three programs. Selected <br />intermediaries will be given limited periods of time, perhaps no more than six months, to <br />obligate program funds. Should they fail to meet their deadlines, their NSP fund <br />reservations maybe cancelled and transferred quickly to other, prequalified <br />intermediaries. The City believes this approach is essential to meeting the eighteen <br />month deadline for obligating NSP funds. <br />Program 1 <br />Through program one the City will make no interest rate, down payment loans available <br />to households at or below 120 percent of area median income. These loans will be <br />deferred for thirty years. They will be due and payable at that time or such time that the <br />home is sold. The maximum loan amount will be 10 percent of the sales price or <br />$40,000, whichever amount is lower. Borrowers. will be required to prequalify for <br />conventional first mortgage loans, and loan amounts. will be restricted to the amount <br />necessary to purchase the home. This program will' be managed by City staff who will <br />work directly with interested homebuyers and realtors. <br />Program 2 <br />The second program, Acquisition and Rehabilitation of Foreclosed Single Family Homes, <br />wi1F seek to facilitate acquisition and rehabilitation of abandoned or foreclosed homes and <br />their sale to low- and moderate-income households through intermediaries selected <br />through the RFP process, as stated above. This program will be primarily operated in the <br />City's priority areas. <br />Program 3 <br />The third program,-Acquisition and Rehabilitation of Condominium Units and <br />Historically Significant Homes, will be operated on a citywide basis. Condominiums <br />represent approximately 9 percent of the City's residential units while single family <br />residences represent approximately 45 percent. Including them in the needs analysis <br />would have had the effect of virtually eliminating single family residences from coverage <br />by the City's programs. Conversely, historically significant homes are small in number <br />and widely scattered, but have a particular importance to the City's cultural life. The <br />City will create a separate program for condominium units and historically significant <br />homes to insure that NSP funds can be used to acquire and rehabilitate such residential <br />units. <br />8 <br />80B-18 <br />