BY PRESIDENT GILBERT:00-0664R
RESOLUTION RESCINDING RESOLUTION 00-0470 AND AUTHORIZING A 2000 HOME PROGRAM HOMEOWNERSHIP DEFERRED PAYMENT LOAN AGREEMENT WITH SPIRIT VALLEY CITIZENS' NEIGHBORHOOD DEVELOPMENT ASSOCIATION (SVCNDA) IN AN AMOUNT NOT TO EXCEED $61,000.
RESOLVED, that Duluth City Council Resolution 00-0470 authorizing a 2000 HOME program homeownership initiative grant agreement with SVCNDA is hereby rescinded.
FURTHER 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 SVCNDA in an amount not
to exceed $61,000, payable from 2000 HOME Program Fund 260, Agency 020,
Org. 2601, Obj. H012.
This resolution also authorizes the same HOME program agreement with SVCNDA incorporating the city's business subsidy requirements. The forgivable loan 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 percent of area median income. The anticipated sale 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 ON 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. The funding provided meets no public purpose as that term is defined in the city's business subsidy criteria.