Title
Homebuyer Assistance Program Policies & Procedures
Recommended Action
I move that Council approve the Homebuyer Assistance Program Policies and Procedures.
County Manager's Recommendation
The County Manager recommends that Council approve the Policies and Procedures
Body
The Homebuyer Assistance Program is authorized under County Municipal Code Chapter 14, Article VII which allows the County to fund and implement a Homebuyer Assistance Program for low income homeowners (households with incomes below 80% of 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. In order to formally move toward implementation of the program, Council must review and approve the program policies and procedures. Los Alamos Housing Partnership, Inc. (LAHP) has been contracted to administer the program and provide complete homebuyer services on behalf of the County under General Services Agreement AGR18-702 as approved at the July 25 Council public meeting.
The Homebuyer Assistance Program Policies and Procedures (Attachment A) was developed by LAHP and County staff as stipulated by the vendor contract. It is anticipated that the Policies and Procedures document will need periodic updates as program issues arise or identified that are not addressed in them.
The Homebuyer Assistance Program Policies and Procedures provide a framework for program activities and outline the various roles and responsibilities for County staff and any entities involved in implementing the program. The document is essentially structured into two sections, wherein the Policies state the overall program purpose and principles that guide decisions, and the Procedures explain the step-by-step tasks and workflows which are required to be performed for each major program stage. In general, Program aspects included in the Policies and Procedures are: loan limits and servicing; affordability controls; applicant eligibility, eligibility of home and eligible costs; application and evaluation process; County Loan Review Committee; underwriting criteria; foreclosure notices; bankruptcy notices; loan subordination; core program rules; financial assistance; establishment of a project file for each applicant; homebuyer education and counseling; home inspection process; loan determination and approval; loan closing preparation; loan closing with homebuyer; loan payoff and options for transferring to heirs; reporting; and annual verification of occupancy.
The minimum allowed down payment loan will be $8,000, with a program maximum of $25,000. It is anticipated that the average down payment loan will be approximately $15,000. The actual number of projects funded each year will partly depend on the local housing market and the availability of for-sale housing units that are affordable to program participants. LAHP will identify and pursue other funding sources in addition to County funding for the down payment loan so that more homebuyers can be assisted.
All program forms, including the application and supporting documents have been drafted. These forms will be reviewed as needed by the County Attorney. After approval of these Policies and Procedures, the next steps will be to finalize the drafting of the essential program documents and forms, which should be completed by mid-October, 2017. Initial program outreach and marketing will take place between mid-October to early November with the application period commencing mid-November and remaining open throughout the year as funds are available.
Alternatives
Council could choose not to approve this Homebuyer Assistance Program Policies and Procedures document version and instead instruct staff to make changes to the Policies and Procedures.
Attachments
A - Homebuyer Assistance Program Draft Policies & Procedures