TO: Mayor and Members of City Council
THRU: Kelly Olivera - Assistant City Manager
FROM: Christopher Cauley - Economic & Community Development Director
Taurus Freeman - Assistant Economic & Community Development Director
DATE: February 27, 2022
RE:
Title
Expand Good Neighbor Homebuyer Loan Program to include all incorporated areas in the city limits.
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Strategic Operating Plan FY 2023
Goals 2026
Goal I: Safe and Secure Community
• Objective 1.3 - To ensure low incidence of property and violent crime.
Goal II: Responsive City Government Supporting a Diverse and Viable Economy
• Objective 2.1 - To ensure a diverse City tax base.
• Objective 2.3 - To invest in community places to ensure revitalization and increase quality of life.
Goal IV: Desirable Place to Live, Work and Recreate
• Objective 4.3 - To ensure a place for people to live in great neighborhoods.
Executive Summary:
The Economic & Community Development Department (ECD) developed the Good Neighbor Homebuyer Loan Program in December 2019. The initial program offered a $20,000 five-year forgivable loan to Fayetteville Police Department (FPD) Officers who purchase their first home in one of two revitalization corridors. Prior City Council actions have expanded the program to all employees, all redevelopment areas, and increased the amount to $30,000. Staff is now recommending an expansion of the program to include all areas within the incorporated city limits.
Background:
The City Council initially approved the “Good Neighbor Next Door” concept to incent full-time FPD officers to purchase homes in the Murchison Road Corridor and Central Campbellton areas in the first quarter of Fiscal Year 2020.
In March 2022, the City Council approved an expansion of the program to include extending the program to all City employees in six redevelopment areas: Massey Hill Community, Bonnie Doone, 71st District Community, Deep Creek, Murchison Road Corridor and Central Campbellton. City Council also increased the benefit from up to $20,000 to up to $30,000.
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Issues/Analysis:
Since its inception, a limited amount of City employees have inquired and no employees have utilized the program despite the utilization of extensive marketing blitz of material city-wide, presentations to various departments, and engagement at the Employee Appreciation Luncheon.
Staff has spoken to less than 20 employees, with two receiving pre-approvals. Yet, none have finalized the necessary requirements or taken advantage of this program to purchase a home within the target areas.
Now integrated with the City’s efforts to become an Employer of Choice, Staff is recommending an expansion of the program to include all incorporated areas of the City limits.
Budget Impact:
No impact at this time. Funding has been appropriated for this program. However, expansion of the program could increase demand in future years. Funding levels will be evaluated annually through the Capital Improvement Plan (CIP) process, and additional funding will be requested during that process, if needed.
Options:
• The City Council approve the expansion of the Good Neighbor Homebuyer Loan Program to all incorporated areas in the city limits;
• The City Council denies the expansion of the Good Neighbor Homebuyer Loan Program to all incorporated areas in the city limits; or
• Take no action.
Recommended Action:
The City Council expands the Good Neighbor Homebuyer Loan Program to all incorporated areas in the city limits.
Attachments:
• Good Neighbor Homebuyer Loan Program Overview
• Redevelopment Areas
• Good Neighbor Flyer