CITY COUNCIL AGENDA ITEM
Memo Date: March 5, 2024
Agenda Date: March 26, 2024
Prepared By: Charlene Neuterman, Community Services Director
Through: Stockton Whitten, City Manager
Requested Action:
title
Approve a HOME Investment Partnership (HOME) Program Agreement with Community Housing Initiative, Inc. (CHI) in the amount of $279,799.61 to award funds for the administration of the City’s Purchase Assistance Program. Approve a Resolution Amending the FY 2024 HOME Budget, BAF#24-068-A, trueing up the Fiscal Year 2024 accounts. Approve a Resolution to Waive Competitive Bidding.
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BACKGROUND:
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On February 27, 2024 City Council approved the FY 2023/2024 HOME Disbursement Agreement between the City of Cocoa and Brevard County in the amount of $310,488.38. The HOME Disbursement Agreement included funding the First Time Homebuyer Program with FY 2023/2024 grant allocation of $74,089.67 and carry forward funds of $236,398.71. Staff is proposing to allocate a total of $279,799.61 towards First Time Homebuyer Program, to assist six (6) low-income households with closing cost and down payment assistance, towards the purchase of a home within the city limits of Cocoa. Five (5) of those will be set aside for homes that CHI are currently building in Diamond Square Community Redevelopment Area (DSCRA). These five (5) homes are part of the Michael C. Blake Subdivision.
The First Time Homebuyer (FTHB) Program provides down payment and closing cost assistance to income eligible, first-time homebuyers, using funds provided form the grant programs. The administration of the FTHB includes marketing, pre-screen applicants, income verification, underwriting, underwriting, property inspections, closing document review, preparation and recording of mortgage documents, homebuyer education and counseling, budgeting, housing and debt ratios, fair housing, mortgage default prevention, post-closing responsibilities, and hurricane preparedness.
The amount of the down payment assistance will be based on the household’s needs. Per the City’s Housing Policy, the maximum assistance for very-low-income households is $40,000. The maximum assistance for low-income households is $35,000. However, if not all funds are needed to make the home affordable, they will not be awarded to the client. There is also a $2,600 subrecipient fee per closing which shall be paid to CHI, this is part of the maximum assistance.
Additionally, Staff is requesting that competitive bidding be waived for the distribution of these funds. Brevard County as the "lead entity" of the Brevard County HOME Consortium has certified Community Housing Initiative, Inc., as a Subrecipient and eligible to receive HOME Investment Partnership Program (HOME) funds. Brevard County has entered into an agreement with the City authorizing and directing the City to utilize Brevard County HOME Consortium funds for eligible HOME activities and projects.
Staff is requesting amending the FY 2024 budget to true up the budgets related to HOME. At the February 27th Council meeting, Council approved the FY2023-2024 HOME agreement with a total budget of $310,488.38. As part of the budget, the following activities are funded with HOME funds: Program Administration - $6535.60, Community Housing Development Organization (CHDO) - $24,153.17 and First Time Homebuyer - $279,799.61.
STRATEGIC PLAN CONNECTION:
Community Development (Redevelopment of the City’s Core) - Supporting these projects funded by HOME will raise the quality of life for its residents, especially those underserved and disadvantaged.
BUDGETARY IMPACT:
Budgeted Yes
PREVIOUS ACTION:
On February 27, 2024 City Council approved the FY 2023/2024 HOME Disbursement Agreement between the City of Cocoa and Brevard County in the amount of $310,488.38.
RECOMMENDED MOTION:
Recommendation
Approve a HOME Investment Partnership (HOME) Program Agreement with Community Housing Initiative, Inc. (CHI) in the amount of $279,799.61 to award funds for the administration of the City’s Purchase Assistance Program. Approve a Resolution Amending the FY 2024 HOME Budget, BAF#24-068-A, trueing up the Fiscal Year 2024 accounts. Approve a Resolution to Waive Competitive Bidding.