HomeMy WebLinkAboutAGENDA REPORT 2006 1206 CC REG ITEM 10ITo:
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BACKGROUND
MOORPARK CITY COUNCIL
AGENDA REPORT
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Honorable City Council
Nancy Burns, Senior Management Analyst
November 29, 2006 (CC Mtg. of December 6, 2006)
Authorize Application for HOME Funds to Acquire Existing
Condominium Units to be Resold as Affordable Housing
The County of Ventura is accepting applications for HOME funds for the upcoming
2007/2008 funding cycle. Applications are due by January 8, 2007.
DISCUSSION
Low Income households in Moorpark continue to face substantial obstacles to home
ownership. The City's Inclusionary program has been successful in securing the
ongoing affordability of fifteen (15) ownership units in the Mountain View
development and providing ownership opportunities to six (6) households in the
Moondance development and one (1) in the TR Partners development. In addition,
two (2) more households are currently in escrow for units in Canterbury Lane.
However, the need for affordable housing continues to outpace the number of
affordable units available.
With HOME funding assistance, existing condominium units could be acquired,
renovated (new carpeting, paint and other minor repairs), if necessary, and resold at
an Affordable Sales Price to low income households. For a market rate unit with an
estimated cost of three hundred sixty thousand dollars ($360,000.00), which would
be acquired and resold to a low income buyer at the Affordable Sales Price of one
hundred sixty thousand dollars ($160,000.00), the HOME funding contribution would
be one hundred fifty thousand dollars ($150,000.00) and the City's contribution of
matching funds would be fifty thousand dollars ($50,000.00) for each unit's "Silent
Second ". Any costs for renovation would be funded by the Redevelopment Agency
separately from HOME funding. (The HOME program requires a twenty -five per
cent (25 %) match of funds.)
Honorable City Council
Meeting of 12/6/06
Page 2
The low income buyer would provide a minimum five per cent (5 %) down payment
and the unit(s) would be sold through the City's First Time Home Buyer Program.
The City's Affordable Housing deed restrictions would be recorded against the
unit(s), to provide long -term affordability.
If the proposed HOME application is successful, staff will request funding
authorization, as required by HOME regulations, at that time.
STAFF RECOMMENDATION
Authorize submittal of HOME application for Down Payment Assistance.
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