TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA, Director of Economic and Community Development
Jeffery Morin, Housing Program Manager
DATE: September 5, 2024
RE:
Title
Homeownership Program Loan Forgiveness
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 2: Responsive city government supporting a diverse & viable economy
Goal 3: City investment in today & tomorrow
Goal 4: Desirable place to live, work, & recreate
Goal 5: Financially sound city providing exemplary city services
Executive Summary:
The Economic and Community Development Department (ECD) currently offers grants and forgivable loans to help rehabilitate properties for seniors and assist first time homebuyers with downpayment assistance. In the past, both programs operated as loans with lengthy repayment periods. The status of all loans within this portfolio has been reviewed by ECD staff. Staff has determined that the costs of managing the loan portfolio outweighs the benefits to the City's financials and ECD, Finance, and Legal are recommending a broad loan forgiveness program.
Background:
The ECD currently offers grants for the emergency repair of the primary residence for low-income homeowners. Typically, these program beneficiaries are seniors on fixed income and the program is offered through Fayetteville Urban Ministry and Fayetteville Area Habitat for Humanity. The ECD also operates a Homebuying HERO program that structures up to $30k in down payment assistance as a forgivable loan for a maximum of 15 years.
ECD previously offered three (3) different housing loan programs (Mortgage Assistance, Down Payment Assistance, and Rehabilitation Loans) that are no longer in use. Some of these programs carried a maximum term of 30 years and reconciliation of these programs and the loans found discrepancies of various types (variance between loan documents and invoices; unr...
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