In accordance with HUD’s Citizen’s Participation Plan (CPP) regulations, the City is required to amend components of its Consolidated Plan/Annual Action Plan for a variety of reasons, including when a reallocation of funds increases or decreases the budget of an activity by more than 25% or when a new activity is added to an Annual Action Plan.
The Housing and Community Development Department (HCDD) is moving forward with its Homebuyer Assistance Program. Therefore, funds are being allocated from remaining balances on completed or cancelled projects.
HCDD recommends moving $3,000,000 in Community Development Block Grant (CDBG) funds from Public Facilities and Improvements, Lead-Based Paint Matching Grant, Multifamily Housing, Code Enforcement, and Acquisition to Homebuyer Assistance.
The Homebuyer Assistance activity will be increased in the 2010 program year and the activity will be added for the 2012, 2013, 2015, and 2016 program years. The funds will be used to assist eligible homebuyer’s with half of the lender required down payment amount, eligible closing costs, principle write-down, and project delivery costs associated with implementing the program. To be eligible for the program, the homebuyer must be at or below 80% of the area median income (i.e. $55,350 for a family of 4).
Specifics of the proposed reallocations are listed on the table attached to this RCA.
This item was reviewed by the Housing and Community Affairs Committee on November 15, 2016.