00-0470R

RESOLUTION AUTHORIZING A 2000 HOME PROGRAM HOMEOWNERSHIP INITIATIVE GRANT AGREEMENT WITH SPIRIT VALLEY CITIZENS' NEIGHBORHOOD DEVELOPMENT ASSOCIATION IN AN AMOUNT NOT TO EXCEED $61,000.

BY PRESIDENT GILBERT:

RESOLVED, that the proper city officials are hereby authorized to enter into an agreement, substantially in the form of the copy on file in the office of the city clerk as Public Document No. ______________, with the Spirit Valley Citizens' Neighborhood Development Association (SVCNDA) in an amount not to exceed $61,000, payable from 2000 HOME Program Fund 260, Agency 020, Org. 2601, Obj. H012.


STATEMENT OF PURPOSE: The purpose of this resolution is to authorize a HOME program homeownership initiative grant agreement with SVCNDA. The grant to SVCNDA will provide gap financing which will include closing costs, down payment assistance and equity participation assistance to make the home purchase affordable for three to four homebuyers in the Ramsey Village "At Home in Duluth" neighborhood. This program will serve homebuyers with incomes at or below 80% of area median income. The anticipated sales price of the homes will be brought down to $72,000. The $61,000 of HOME funds was reserved for the SVCNDA Ramsey Village infill housing program February 14, 2000, by the City Council (00-0072R) pursuant to the recommendation of the Citywide Citizens' Advisory Committee (CCAC)and the Duluth Housing Commission. The reservation was made to give SVCNDA time to complete the Ramsey village phasing plans and to provide a more detailed budget. The CCAC approved this recommendation at its June 27, 2000 meeting.