Title
Homebuyer Assistance Program Policies & Procedures Amendment
Recommended Action
I move that Council approve the proposed changes to the Homebuyer Assistance Program Policies and Procedures.
County Manager's Recommendation
The County Manager recommends that Council approve the proposed changes to the Homebuyer Assistance Program Policies and Procedures.
Body
The Homebuyer Assistance Program is authorized under County Municipal Code Chapter 14, Article VII, Division 3, which allows the County to fund and implement a Homebuyer Assistance Program for income-qualified homebuyers (households with incomes below 80% of the Los Alamos County Area Median Income). The program purpose is to assist income eligible households to purchase a home in Los Alamos County by providing non-amortizing deferred down payment loans. County Council approved the program policies and procedures at the September 5, 2017 Council meeting. Los Alamos Housing Partnership, Inc. (LAHP) is under contract to administer the program on behalf of the County.
The Homebuyer Assistance Program (HAP) Policies and Procedures were developed by LAHP and County staff which provide a framework for program activities and outline the various roles and responsibilities for County staff and any entities involved in implementing the program. It is acknowledged in the Policies and Procedures that periodic updates may be required as program, community, and lending sector conditions change or situations arise. In July of 2018, two amendments were made to the policies and procedures with Council approval, which were to: 1) Increase the permitted Cumulative Loan to Value (CLTV) to 105% (with value being determined by appraisal, not purchase price) from the previous program limit of 100% CLTV; and to 2) Allow for applicants to borrow under Adjustable Rate Mortgages (ARMs) with a 30-year amortization term and a fixed rate for a minimum period of 15 years after which time the interest rate can be adjusted only ...
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