80B - NEIGHBORHOOD STABLIZATION PROGRAM

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DRAFT G. NSP INFORMATION BY ACTIVITY (COMPLETE FOR EACH ACTIVITY) (1) Activity Name: Program 1: Down Payment Assistance to Buyers of Foreclosed or Abandoned Single Family Residences (2) Activity Type: (include NSP eligible use & CDBG eligible activity) NSP Eligible Use: Financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties (HERA, 2301(c)(3)(A). CDGB Eligible: Direct homeownership assistance (24 CFR 570.201(n)) Activity (3) National Objective: (Must be a national objective benefiting low, moderate and middle income persons, as defined in the NSP Notice-i.e:,''_< 120% of area median income). LMMH: Homeownership assistance providing or improving permanent residential structures that will be occupied by a household whose income is at or below 120% of area median income. (4) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income-qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income. Through this activity the City will make no interest rate, `down payment loans available to households at or'below 120 percent of area. median income. These loans will be deferred for thirty years. They will be due and payable at that time or such time that the home is sold. The maximum loan amount will be 10 percent of the sales price or $40,000, whichever amount is lower. Borrowers will be required to prequalify for conventional first mortgage loans, and loan amounts ~~~ill be restricted to the amount necessary to purchase the home. This program will be managed by City staff who will work directly with interested homebuyers: and realtors. As demonstrated in Section A-of the Substantial Amendment, abandoned and foreclosed upon homes are found in most of the City's census tracts. However, the City will insure targeting through its strategy of defining the top twenty of its census tracts in terms of their risk of abandonment or foreclosure, as its priority areas. The City will insure that this activity benefits income qualified households by limiting eligibility to those with incomes at or below 120 percent of area median income. Given the significant upfront and long term costs associated with homeownership the City does not anticipate that this program will serve any very low-income households, and it will not deed restrict any homes purchased through this program to occupancy by very low- income households. (5) Location Description: (Description may include specific addresses, blocks or neighborhoods to the extent known.) 13 80B-23