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HomeMy WebLinkAboutAGENDA REPORT 1990 0207 CC REG ITEM 08N MOORPARK ITEM • = _ PAUL W.LAWRASON,Jr. STEVEN KUENY • Mayer City Manager SCOTTMONTGOMERY - 1->\ 72-f; CHERYL J. KANE Mayor Pro Tern I City Attorney ELOISE BROWN PATRICK RICHARDS,A.I.C.P. Director of Councilmember . Community Development CLINT HARPER,Ph.D. %,. R.DENNIS DELZEfT - Councilmember BERNARDO M.PEREZ City Engineer JOHN V.GILLESPIE Councilmember Chief of Police LILLIAN KELLERMAN RICHARD T.HARE City Clerk City Treasurer MEMORANDUM '10: The Honorable City Council Patrick J. Richards, Director of Community Development DATE: February 2, 1990 (CC meeting of 2/7/90) SUBJECT: FIRST-TIME BUYERS PROGRAM Background In July of 1989 the City was provided with the opportunity to provide five new single family detached residential dwellings to first-time home buyers. At the Council's August 2, 1989 meeting, the Affordable Housing Committee presented the Council with a summary of criteria flA.Au which a program should be created. The Council generally concurred with the Committee's recommendations with same changes. It was the consensus of the Council to continue pursuing finalization of the criteria. The Council agreed to allow Griffin Hams to be involved Ja working with the Affordable Housing Committee in the assessment of the f: nal criteria. .Since August 1989, staff has held several meetings and placed numerous phone calls with lending institutions regarding their participation in the City's program. The need for a willing and reasonable lender is of greatest concern to the success of this program. Several lenders appeared to be very willing but their commitmont was centered on the ability to sell the loans on the secondary mortgage market. The City has been looking for a lender who could provide a great dt:.Nal .3f flexibility and was sensitive to the City's interest in providing thi pr3grani. Discussion Recently the City received a ieply frau Simi Valley Bank regarding the City's program which in general agrees with the City's requirements. Their letter and subsequent follow up -ills disclosed a strong interest to participate in this program. 799 Moorpark Avenue Moorpark. California 93021 (805)529-6864 TO: The Honorable City COunci- FROM: Patrick J. Richards, Director of Community Development DATE: February 2, 1990 (CC meeting of 2.'7/90) SUBJECT: FIRST-TIME BUYERS PRCGRAM Page -2- It is apparent that the City may need to fund a buy down of the interest rate to insure a sufficient number of applicants can qualify for the program. As you will recall %he City has up to $10,000to help each of the five selected buyers. At a meeting held with Griffin Homes January 24, 1990 they indicated that the subject units could be ready for occupancy by late June early July of this year. Cnce the foundation slabs are in place, and lumber on site the construction should take approxinaU,ly six (6) months. The next step in this process is the finalization of all the specifics on how the program will actually function; under what criteria the names are to be drawn; who is to qualify the buyers, etc. An agreement between the City, Griffin Homes and the lender would need to be reached as to who will do what and when. In order to meet the construction timetable; the City will need to hold the drawing for he five homes within the next 4 to 6 weeks. Staff Recommended Action That Council direct staff to finalize all tasks associated with this project as soon as possible and to return to the Council with an outline of City, Griffin Homes, and lender trepcmsibilities in this project. Attachment: Staff Report dated 7-28-89