HomeMy WebLinkAboutRES NO 091-07
RESOLUTION NO. 0 9 1 - 0 7
A RESOLUTION OF THE COUNCIL OF THE CITY OF
BAKERSFIELD AUTHORIZING THE ADOPTION OF A CITY
EMPLOYEE DOWNPAYMENT PROGRAM AND
AUTHORIZATION FOR THE CITY MANAGER OR HIS
DESIGNEE TO IMPLEMENT THE CITY EMPLOYEE DOWN
PAYMENT PROGRAM AND EXECUTE ANY AND ALL
DOCUMENTS AND MAKE MINOR REVISIONS IF NECESSARY.
WHEREAS, the City of Bakersfield (a charter city and municipal corporation) has
determined that a high priority exists for affordable ownership housing for City
employees; and
WHEREAS, the City of Bakersfield, a charter city and municipal corporation, has
experienced a dramatic increase in costs associated with housing construction and
development creating an afford ability gap for households of low to moderate income;
and
WHEREAS, the Economic and Community Development Department developed
a down payment program up to $40,000 from Federal HOME Investment Partnership
funds designed to assist qualified homebuyers purchase home in the City of
Bakersfield; and
WHEREAS, on April 23, 2007, the City of Bakersfield Personnel Committee
recommended that the City Employee Down Payment Assistance Program be
forwarded to the City Council for approval; and
WHEREAS, the expanded down payment program is proposed to provide a
special program up to $40,000 for qualified low-income City employees seeking to
purchase homes located in the City of Bakersfield; and
WHEREAS, the down payment assistance program will assist qualified City
employees earning eighty percent (80%) or less of area median income home
ownership opportunities; and
WHEREAS, the home ownership assistance will be a deferred loan (silent
second) to assist with down payment and closing costs; and
WHEREAS, the loans will have a 10 year affordability period with loan terms of
15 years at 0% interest;
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WHEREAS, upon the loan reaching year 5 of the affordability period, one-fourth
(1/4) of the down payment assistance will be forgiven. Upon the loan reaching year 10
of the affordability period and additional on-fourth (1/4) of the down payment assistance
will be forgiven. Upon year fifteen (15) the entire balance will become due and payable
to the City; and
WHEREAS, City employees will be eligible to apply for the down payment
assistance program upon completion of the probationary period and status as a full-
time regular employee; and
WHEREAS, the City of Bakersfield desires to offer a down payment program to
its employees.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield
as follows:
SECTION 1. The City of Bakersfield shall adopt a City Employee down payment
program using HOME Investment Partnership recapture guidelines below:
Homeownership assistance will be furnished as a deferred loan (silent
second) for amounts up to $40,000 to assist with down payment and
closing costs. Loans will have a 10 year affordability period and a loan
term of 15 years with no monthly payment of principal and will not accrue
interest. Upon reaching year 5 of the affordability period one fourth (1/4)
of the assistance will be forgiven. Upon reaching year 10 of the
affordability period an additional one fourth (1/4) of the assistance will be
forgiven. The loan balance will be due and payable upon year fifteen.
During the 10 year afford ability period the property must be sold at an
affordable price to a low-income household, as defined by HUD. If at
anytime during the term of the note, the property is sold, transferred,
refinanced, or upon a change in title to the property the loan balance
shall be due and payable in full. In the event of foreclosure, the
recapture amount will be based on the net proceeds available from the
sale rather than on the entire amount of the HOME Investment. The
funds will be used within the boundaries of the City of Bakersfield.
SECTION 2. The City of Bakersfield authorizes the City Manager or his
designee to implement the City Employee down payment program and execute any and
all documents and make minor revisions if necessary.
SECTION 3. This Resolution shall be effective immediately upon its adoption.
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by
the Council of th~ Cibt of Bakersfield at a regular meeting thereof held on
MAY >>20U7 by the following vote:
CAVES)
~
ABSTAIN:
ABSENT:
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COUNCILMEMBER CARSON, BENHAM, COUCH, HANSON, SULLIVAN, SCRIVNER, WEIR
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
APPROVED
MAY
9 2001
'fUd;~
PAMELA A. McCARTHY, C
CITY CLERK and Ex Officio Clerk of the
Council of the City of Bakersfield
f
APPROVED as to form:
VIRGINIA GENNARO
City AttorneY/1
By:
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