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HomeMy WebLinkAbout970544.tiffRESOLUTION RE: APPROVE DOWN PAYMENT ASSISTANCE APPLICATION TO COLORADO DIVISION OF HOUSING AND AUTHORIZE CHAIR TO SIGN WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with the Down Payment Assistance Application from the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Weld County Housing Authority, to the Colorado Division of Housing, with terms and conditions being as stated in said application, and WHEREAS, after review, the Board deems it advisable to approve said application, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, ex -officio Housing Authority Board, that the Down Payment Assistance Application from the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Weld County Housing Authority, to the Colorado Division of Housing be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said application. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 24th day of March, A.D., 1997. Weld County C BY. APP Deputy Cler t. the :oard BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO G/eorge E. Baxter, Chair nce L. Harbert, ro-Tem Dale K. Hall -1C( , t A /4_,' <, C Barbara J. Kirkmeyer Fxc:i IsFn W. H. Webster 970544 HA0017 Application Colorado Loan/Grant for Division Assistance of Housing 1997 Date Received Project # AMOUNT OF FUNDING REQUESTED $ 105,600 Loan X Grant APPLICATION INFORMATION ;. Applicant (Name and Address) Weld County PO Box 758 Greeley, CO 80632 Chief Elected Official or Executive Director George E .Baxter Phone No 356-4000 ext 4200. Federal ID No. 84--6000813 Fax No.353-1964 Title Chair Address Same as above Designated Contact Person for Application Jim Sheehan Title Director, WCHA Phone No. 356-4000 ext 4401 Fax No. 356-4000 ext 4414 Address Weld County Housing Authority, PO Box A, Greeley, CO 80632 TYPE'. OF ORGANIZATION _ TYPE OF PROJECT X Municipality/County/Consortia Rental Nonprofit (501(c)] (send copy of IRS determination) X Homeownership CHDO (Community Housing Development Organization) Rental Assistance Public Housing Authority Group Home or Shelter Other (Specify) PROJECT DESCRIPTION TYPE OF PROJECT ACTIVITIES (Check all of the activities involved in your project) New Construction Rehabilitation Tenant Based Rental Assistance Infrastructure Improvements Program Administration Acquisition X First Time Home Buyer Program Other APPLICANT MANAGEMENT CAPACITY/PROJECT PERSONNEL EXPERIENCE (Use additional pages if necessary) See Attachment 18 Application - 1 970544 Grant Administrator: Jim Sheehan , Director, Weld County Housing Authority Project Manager: Jim Sheehan , Director, Weld County Housing Authority Project Coordinator: Jim Sheehan , Director, Weld County Housing Authority Fiscal Manager: Jjim Sheehan, Director Weld County Housing Authority in coordination with Weld County Accounting Division Project Engineer: NA Project Architect: NA Application - 2 970544 Consultant: NA Project Owner: NA Project Developer: NA Property Manager: NA PROJECT LOCATION: Weld County exclusive of the City of Greeley, Colorado W City County Weld Application - 3 970514 SITE; CONTROL STATUS (chet one) (send documentation) OTHER (Explain) OWNED OPTIONED LEASED ZONING STATUS: (send documentation) NA Application - 4 970514 Project Description Narrative Weld County the City of Greeley and United Way joined together in 1992 and formed the Weld County Homeless Housing Task Force. From this group, the Comprehensive 'Housing Development Plan was produced as the planning strategy to address four key areas relating to housing: 1 ► Emergency Housing 2) Transitional Housing 3) Migrant Housing 4) Long Term Housing While the committees focused on different areas, the basic intent, among all of the committees, was to develop alternatives for addressing housing needs among low and moderate income individuals and families. One of the recomendations encompassed in the Comprehensive Housing Plan was to create a housing development corporation which could promote home ownership opportunitites through out the county. The High Plains Housing Development Corporation was created in 1995 to begin this task. In 1995 High Plains Housing Development Corprotation received a CDBG grant through the City of Greeley to begin a home ownership program. The approach created through the High Plains Housing Development Corporation provided down payment assistance for first time homebuyers. The average loan made through this program has been $4,000. Since 1995 24 loans have been provided for down payment assistance. The primary drawback on this program has been that, due to the funding source coming from the City of Greeley, the program has not been available county -wide. This request would expand the down payment assistance program beyond the City of Greeley, to the balance of Weld County. We are proposing to provide down payment assistance for 24 households in Weld County during a twelve month period at an average costs of $4,000 per household. High Plains Housing Development Corporaation will be used as the adminstering agency to determine the eligibility of the applicants for the program. Once an applicant is determined eligible for the program, a 5 per cent interest rate loan will be provided. The term of the loan is 10 years.. All payments will be generated through the Weld County Finance system. A Deed of Trust will secure the loan. All loans will be managed by Weld County Housing Authority. Application - 5 970514 Application - 6 OTHER PROD ECT INFORMATION ? What energy efficient measures have been included in the project design? No applicable to this project since potential home owners will be selecting their own units. What additional design work must still be completed? NA Have you included ADA/Section 504/state access requirements in your YES _ NO cost estimates? Application - 7 9705' If not, why not? Not applicable for down payment assistance. Complete the Davis -Bacon wage rate exemption checklist (copy on page 15 of Attachments). If Davis -Bacon wages apply to the project 'include in the project co Have any of the units received Rental Rehabilitation Program Funds? No Application - 8 9705 "4 Describe any in -kind contributions by type and value in support of this project. Include in the Project Budget and Sources and Uses the cash value of the in -kind contributions. , Weld County will assume the cost of administration of this project. Cost to be provided include: 1. Staff time needed to complete all reports required by the State 2. Costs associated with generating payments to the lending institution Weld County expects to contribute $1,000 toward the administration of the project. What other funding alternatives have been explored? Describe the results. An application was submitted to CARHOF, the Colorado Association of Realtors Housing Opportunities Foundation Home Ownership Initiative, in December, 1997, for down payment assistance for applicants in Weld County. The amount requested was $10,000. The application is still pending. Application - 9 970:4 Describe local commitment, and/or resistance, to the project. Also, describe efforts made to build community support for the project and the results of those efforts. The Weld County Board of Commissioners continue to be concerned about the ability of families to become first time home buyers based on the currently high market conditions. The average price of as home, based on the Weld County Board of Realtors is $124,000. This has made it increasingly difficult for families to buy a home. The down payment assistance program will provide an opportunity for those who otherwise qualify, with the exception of not having the required down payment, the means to be able to become homeowners. The interest in the program is evident by the fact that High Plains has expended all of their funding which was received from the City of Greeley's Community Development Program. This program has been well received by the realtors and the mortgage/lending community alike.. During the Home and Garden Show, held March 1, 2nd, and 3rd, in Greeley, High Plains sponsored an information booth for the general public. Based on inquiries from the attendees, it became evident that there was a great deal of concern for the younger families ability to become home owners. Our plans to extend the program beyond the City of Greeley were well received. Application - 10 9705,14 ECT MARKET INFO RMATI This project will be marketed to all realtors and mortgage lenders through out the County. In addition, we will utilize the news and media to reach the public. The program w"ll also be marketed to service organizations through out the County. During the week pf March 10, 1997, there were 99 single family homes for sale in Weld County, selling between $80,000 to $100,000, according to the Multiple Listing, published by the Weld County Board of Realtors. Application - 11 9705t74 Describe project need. Like the rest of the Front Range, the population of Weld County will continue to grow during the next few years. From 1990 to 2000, the population is projected to grow by approximately 24 per cent. In order to keep up with the projected growth, 10.3% more housing units will be needed in Weld County. Wages traditionally tend to be lower than other Front range counties. The population of Weld County tends to be under educated, younger and poorer than other Front Range counties. Most of those jobs are in the service field. and non durable manufacturing. While between 1989 through 1995 wages in Colorado grew 23.62%, in Weld County wages grew 20.93. Based on information provided by the University of Northen Colorado's Economics Department, a variety of factors have contributed to the shortage of lower income homes that would be attractive to first time home buyers. Some factors are exogenouswhile others are internal to the Weld County. The external factors relate to the regulations of financial institutions. Internally, the population has increased beyond the supply of affordable housing, pushing the cost of housing Between 1980 and 1990 the median family income lost purchasing power. In 1993 the interest rate declined to an all-time lo and has stayed relatively low since that time. This made it possible for many to move toward home ownership. But as the demand increased, so did the price of a home Form 1990 to 1996 the price of a home increased 78%, requiring a higher income in order to qualify for a home loan. Compounding the problem is, while many homes are still being built, most of those homes are not affordable to lower income persons. Weld County, like most of the front range counties has seen the cost of home sky rocket from 1990 to present. In 1990, the average sale price of a home in the Greeley area was 68,600. In 1996 the average price had jumped to $122,500. A family earning 80% of median income can afford a home selling for approximately $89,000. Based on the real estate market of Greeley and Weld County, the target population who will probably benefit the most from this program will be households earning between 60 and 80 per cent of median income. Those persons in that income category may include: school teachers, auto mechanics, bank tellers, and fire fighters. Unless the family has assistance from family or has been fortunate enough to save for the full amount of the down payment, it makes it very difficult for persons at less than 80 per cent of median income to become home owners. Given the current real estate market, many families simply cannot afford the down payment. This program provides an additional option to individuals and families who have made the decision to become a homeowner. During the week of March 10, 1997, there were 99 single family homes for sale in Weld County, selling between $80,000 to $100,000, according to the Multiple Listing, published by the Weld County Board of Realtors. Based on this information, homes are available for persons at 80% of median income. During the Home and Garden Show held March 1 through March 3, 1997, High Plains Housing Development Corporation conducted a survey of Home ownership attitudes. Below are the results of the survey. Application - 12 970,r,‘9,1 RESULTS: Home and Garden Show Survey 9705:4 INTRODUCTION As part of a needs assessment study on the costs of home- ownership in Weld County, the Housing Authority and its subsidiary High Plains Development Corporation, issued a survey to the general population. The survey was given out during the weekend of February 28 -March 2, at the Home and Garden Show, sponsored by the Greeley Tribune. The criteria for the sample population, was that participants were renters and not home -owners. The total number of participants that filled out the survey was 104. Although this was not a very large number, it still can be used as an indicator as to some of the issues about the cost of home ownership. In order to interpret the results, it is important to look at each of the questions separately by using frequencies, as well as the strengths and weaknesses of some of the questions. Due to the number of respondents(104), the actual number will be examined instead of the percentages. THE SURVEY The survey was designed to look into whether in Weld County, feel able to afford to become owners, as well as what some of the barriers that doing so. Respondents answered with the Likert coded by the following:(1) Strongly Agree; (2) Know; (4) Disagree; (5) Strongly Disagree. or not citizen's first time home - prevent them from Scale, which was Agree; (3) Don't Question #1- "It is a goal of mine to purchase a house in Greeley or Weld County within the next two years." Rationale- This question was designed to uncover the target population for the High Plains Development Corporation's loan assistance program. The question was designed to find out how many people have it as their short-term and immediate goal to become a home -owner. Results- Of the 104 respondents, 59 responded that they Strongly Agree(SA) and 24 Agreed (A). This means that of the 104 respondents, 83 did feel that it was a goal to buy a house in Greeley and Weld County. This indicates that there is a significant number of people who are interested in becoming home- owners in Greeley and Weld County. The median score was (1) which is in the Strongly Agree category. Question #2- "The costs of buying a home in Greeley and Weld County are within my income range." Rationale- The question is designed to arrive at the heart of the issue -the cost of buying a home in Weld County. This question was placed second, in order to establish the focus of the survey. Results- The results of this question, were more evenly distributed than the first response. Seven people responded with (SA) and 24 97054'51 responded with (A), while 18 people marked Don't Know (DK). However, 29 people marked the Disagree (D) category and 26 marked the Strongly Disagree (SD) category. This suggests that over fifty percent or 52.9%, do not feel that they have the income necessary to buy a house. Whereas a smaller number of respondents- 31 felt that they did have the income to become home -owners. There was a significant number people (18) who may not be aware of the cost of homes in Greeley and Weld County. The median score was (4), is Disagree, which indicates that people do not feel that the costs are within their income range. Question #3 -"The costs of maintaining a home after purchase, are within my income range." Rationale- The rationale for this question was for respondents to think beyond the initial purchase, as home -ownership is an ongoing and expensive (ad)venture. Results -The highest number of respondents (42) marked Agree; (10) wrote Strongly Agree and (31) marked in the Don't Know category. A smaller number of respondents (15) marked Disagree and (6) wrote Strongly Disagree Weaknesses -The question was too vague. Specifics such as repairs, lawn and house hold items should have been mentioned. This may have effected the results in the Don't Know category. Median- The median score was (2.5) which suggests that participants either agreed that they could afford maintenance costs or did not know. Question #4- "The costs of utilities(such as gas, electricity, water etc.) are within my income range." Rationale- This question was designed to provoke respondents into thinking about additional costs other than maintenance. Results- According to the results of this question, over one half of the respondents felt that the cost of utilities were not a barrier to them. Only 14 participants responded that they felt that it was not within the income range. However, 64 respondents felt that the costs of utilities were within their income range. This is an indication that the costs of utilities may not seem like a barrier to this group. A large number of respondents (26) responded with Don't Know. This is probably a good indicator, in that many renters are probably not aware of the costs, as it may seem much higher than people pay for apartments. Weaknesses- The question probably could have been made into one big question, with the previous one for the subject of maintenance. The median score for this question was (2), which suggests that participants agreed that they could afford utilities. This 970544 suggests that the costs of utilities may not be a barrier. Question #5- "There are many available homes within my earning range." Rationale- The question looks into availability of homes within the participants income range. This is an important question because, it addresses the thoughts that respondents have towards the opportunities of becoming a home -buyer. Many respondents have felt capable of buying a home, however, they may not believe that many exist within their income range. Results- Of 104 respondents 4 marked strongly agree, while 16 marked agree. A large number (23), marked in the Don't Know category. However, the largest number of respondents (37), Disagreed, with the second highest number marking in the Strongly Disagree category. This indicates that 58.7% do not feel there are many available homes within their salary range. This could indicate that there does exist a substantial group within Greeley and Weld County who do not feel that they have access to home- ownership. Or feel that they have limited access. The median score about availability was (4), which suggests that participants did not feel that there were many available homes within their income range. Question #6- "The increase in housing costs over the past five years have been comparable to the increases in my income." Rationale- This question addresses one of the most important issues that this survey is trying to measure as the costs of housing has increased dramatically compared to the wages. Results- The results did indicate the issue that we are trying uncover, as only four respondents marked Strongly Agree and 12 marked Agree, with 16- Don't Knows. A considerable number respondents (40) marked Disagree, with 31 marking in the Strongly Disagree catagories. This indicates that a great majority of respondents did not think that their incomes were increasing at the same rate as the costs of homes. Weakness- Perhaps the question would have been more effective for the flow of the survey had it been placed before the previous question. The median score was (4), which is Disagree, suggests that people did not think that incomes increased the same as housing costs. Question #7- "The procedures necessary to qualify for a home loan are easy to understand." Rationale- The question looks into whether the process of qualifying for a home loan is a barrier to home -ownership. Do 9705e':4 people understand the procedure necessary to qualify for a home loan- and could it be a reason that people to not chose to y go through the process. Results- The results were as expected, as nine people wrote Strongly Agree and 19 marked in the Agree category. The largest number of respondents (32), were in the Don't Know category. An equal number of respondents (22), answered both in the Strongly Disagree and Disagree catagories. Due to the large number of people in the answering with those responses serves as an indicator that the loan process could be a barrier. The median score was (3) which indicates that a large number of people are not aware of the loan process. This question could be used to support the need for an educational component. Question #8- "I have the credit rating to qualify for a housing loan." Rationale- This question is designed to look at whether participants have the financial history to be eligible for a home loan. This could be a major barrier to a person who is interested in a first time home. Results- The results were equally distributed as 16 marked Strongly Agree, 22 people marked Agree, 28 people marked Don't Know, 22 people marked Disagree and 16 marked Strongly Disagree. The fact that the largest number of people were in the Don't Know category serves to indicate that a significant number of respondents do not know the procedures necessary to qualify. The median score was (3), which suggests that respondents are not sure whether their credit rating could be a barrier. Weaknesses- This question can be considered too personal for some respondents. Some of the respondents may not have answered honestly, which can skew the results. Question #9- "I have a lifestyle consistent with home -ownership." Rationale- The reason why this question was placed was due to the fact that home -ownership may not be within their lifestyle choice. For example, many people may have other priorities such as travel or entertainment costs that prevent them from becoming first time home -owners. Results- The results suggest that life-style choice may not be a barrier to people, as 23 participants marked Strongly Agree and 38 marked Agree. Only nine people marked Disagree and seven marked Strongly Disagree, with 26 answering Don't Know. Weaknesses- This is another question that participants may have felt too personal. Often times participants will answer with 9705t' responses that reflect them in a positive light. The median score was (2), which suggests that people did not feel that their lifestyles were a factor. RESULTS OF THE FIRST NINE QUESTIONS The results of the first nine questions serve as an indication that a segment of the population either can not or do not feel that they have access to home -ownership. The barriers seem to be more with the actual costs of houses, compared to the wages. It is the cost of the house, that seems to serve as the initial barrier as the costs of homes have increased so dramatically in the past five years. Other suggested barriers, such as maintenance, utilities and lifestyle do not appear to be as much of a factor. The procedures such as the loan process and credit rating may also be a barrier as participants indicated that both could be a factor against buying a house. Although the sample was only 104 people, it does appear that there exists a sizeable population who could become first time home -owners and have the interest in doing so. The results suggest that the biggest barrier could be the initial costs of the home and the confusion of the loan process. The information could be used to justify the funding for a loan and educational program for Weld County, such as High Plains provides. DEMOGRAPHICS The next set of questions dealt with the demogrophical information to determine the make-up of the participants. The demographics provided information into such factors as age, number of children, and income, which could serve as both helping factors and barriers. For example, one who makes $30,000 a year, may have several children and a high rent. These could be barriers that may prevent a person from becoming home -owners. Questions #10-#11 asked the participants age and sex. The ages were divided by decade 20-29; 30-39 etc. Forty-five respondents were in their twenties, with 35 respondents in their thirties. Fifteen participants were in their fifties and seven were in their 50s. Perhaps the biggest reason for the youth of the respondents, is that the target population was renters. Renters, especially in a college town such as Greeley, tend to be younger. Most of the people at the Home and Garden Show tended to be home -owners. Sixty-six of the respondents were female and 36 were male. This could be due to the large number of women attending the event compared to men. Although based on observation, it appeared that more women attended the event than did men. Question #12. "How many children do you support under 18?" Rationale- The question focuses on children as a financial 9(0r--'.:4 obligation. If a person supports several children, that could bp a financial barrier that prevents home -ownership. Results- The results indicate that child support may not be a barrier to home -ownership. Thirty-seven respondents did not have children, while fifty people had 1-2 children and Fifteen respondents had 3-4 children. This could be due to the fact that fewer people are having children. As well as the younger ages of the respondents. Weaknesses- Perhaps a question to ask in addition to the number of children, is one about marital status. This is due to the increasing number of single families, which could be a big barrier to home -ownership. The median score was (2), which suggests that most of the respondents have 1-2 children. Question #13- " What is your ethnic background?" Rationale- This question was placed to uncover the racial make-up of the respondents. Are more Hispanics being locked out of home- ownership, than their Caucasian counterparts. Results- Of the respondents, 20 were Hispanic; 39 were European; 19 were Native Americans and 20 were listed as Other. Weakness - Many of the Hispanic. category, listening. a familiar This question confused people about their heritage. respondents who answered Native American were possibly The fact that so many people answered in the Other is probably due to the confusion of the European That should have been called Caucasian, because it is word. The median respondents greater had score was (2), which suggests that the majority of were European. The number probably would have been the variable been different. Question #14, asked "How long have you lived in Greeley or Weld County?". This question uncovered a fairly equal distribution for those who are not long term residents. However, the largest number of people (49) have lived there over ten years. This distribution is not too surprising because Greeley is a town with both a long term and stable population, as well as transient college students and new residents to the area. The distribution of the question reflected this. The median score was (4), which indicates that participants are long term residents of Weld County (8-10) years. Question #15- "Do you currently rent or own?" This question may not have been important because the target audience was renters. Ninety people were renters. Question #16- "If you rent, how much do you pay per month?" Rationale- The question looks at the cost rents in Greeley and Weld County. The costs of rents could also be a barrier to home- ownership, as people spend a large percentage of their salaries on rent. The lowest range for rent was under $250 and the high end was $700. After speaking to apartment owners, this seemed to be a good range for Greeley and Weld County. Results- The results were fairly evenly distributed, however 31 people spent between $401-550 and 23 people spent between $551-700 dollars. Fifteen respondents spent over 700 dollars. This indicates that the rents in Greeley and Weld County are increasing. Weaknesses- This question should have been included with the first set. Respondent could have been asked if they felt that the rents were a barrier to home -ownership. The median score was (3), which indicates that the average rent for the participants is between $401-550. Question #17- "How much would you expect to pay for a house." Rationale- This question is designed to find out if people have realistic goals about buying a house. The costs may be beyond their actual expectations. Results- The majority of people (43), marked in the $85-100,000 range. Ten people marked in the $115-130,000 range -which is still under the average cost of a home. This indicates that the majority of respondents would only expect to pay the costs for a modest "starter home". The median score was (3), which suggests that most people would expect to pay in between $85,000-100,000 for a house. This amount is still well below the average costs for a home. Question #18- "How much per month, would you expect to pay for a house. Rationale- The range for monthly house payments is under $500 to over $950. This range was determined by speaking to both Jim Sheehan and Tom Teixeira, and included increments of $150. This was to determine whether or not people would realistically afford a home. Results- A large number of respondents answered in the lower range, as 40 participants marked in the $501-650 range and 36 participants marked the $651-800 range. Fourteen people could only pay under $500 a month. This suggests that the rising costs the primary barrier to home -ownership, as people may not have the resources to be home -owners. 97or14 The median score for this question was (2), which is between $501- 650 Question #19- "What is your family income?" Rationale- The question is self explanatory. The range is from under $25,000-$55,001. This is due to the fact the average income in Greeley and Weld County is about $31,000. Residents who earn more than $55,000 are probably home -owners already. Those who earn under the amount, would not qualify anyway. Results- A large number of respondents (34), may not qualify as they earn under $25,000. Thirty-one people earn between 25,001- 35,000 and would probably be barely within the range. Twenty respondents earned between 35,001-45,000, and 12 people earned in the $45,001-55,000 range. Only three people earned above that amount. Four people did not respond to the question, which was a lower number than expected. The median score was (2), which indicates that the average income of participants was between $25,001-35,000. This range is just below the average in Weld County. Question #20 asked, "Who is your employer?" This is to uncover the major employers of the participants. This is for fundraising efforts by High Plains Development Corporation. The results are attached. Question #21- "How long have you worked at your current job?" Rationale- One of the criteria that lenders use is employment stability. Results- The majority of participants have not worked in their jobs for a long period of time. Twenty-nine people have been at their jobs for less than a year, and twenty-eight people had been employed 1-2 years. Nineteen people had been there for 3-4 years, and seven people had been employed at their job for 5-7 years. Only 12 people had been employed for over six years. This could be due to the large student population in Greeley, as well as recent growth. The median score was (2), which indicates that the participants had been with their employer for 1-2 years. STRENGTHS and WEAKNESSES The strengths of the survey is that it did uncover a population that is in need of loan assistance. Even though there were only 104 participants, a substantial number of people within that group were interested in home -ownership. The survey could be used to qualify the existence of a loans program in Greeley and Weld County. Enough people, who may qualify for a home, displayed interest in the loan program( Almost 50%). The survey also helped 970`. /1:'' establish that the costs of home -ownership in Greeley and Weld County have created a situation in which more and more people are being denied access into a stable home within Greeley. Other weaknesses, not mentioned earlier, were the length of the survey. One page would have been adequate, as some people did not fill out the second page. The locale of the table for the event was in a difficult position. The placement was out of the control of the organizations, so that was just luck. The location was at the very front of the turnstile which set the table in front of the incoming crowd. This was difficult because people were just walking in, and were not amalgamated to their environment, as we asked them. This could have contributed to some of the reluctance. It is interesting to note, that a substantial number of people did not want to take part in the survey. How much that had to do with location is not known. question is designed to look at whether participants have the financial history to be eligible for a home loan. This could be a major barrier to a person who is interested in a first time home. 9'70';4 How was need determined? Need was determined by experience of the High Plains Housing Development Corporation's down payment assistance program. Information was provided by Ann Garrison, Economist for Weld Economic Development Partnership and professor at University of Northen Colorado. Additional information was provided by Giele and Associates Century 21. Application - 13 970:3/.!:4 Describe how project/program will be marketed to the identified beneficiaries. The program will be marketed through the County news and radio media and through the lenders and real estate community through out the County Since some of the families can be presumed to be monolinguel (spanish speaking only), marketing material will be developed to reach those individuals and families. Application - 14 970E;14 PRoJ ECT BENEFICIARIES Down Payment Assistance for First-time Homebuyers 48 30 13 Descriptive Title of Proposed Project Activity Number of Persons That Activity Will Serve Direc) Percentage of Median Income Total 11O%- 81% 80%- 61% 60%- 51% 50% or less Describe method(s) by which the estimates of low and moderate income persons were determined? Attach supporting documentation if necessary. The information is based on actual individuals served through High Plains Housing Development Corporation down payment asssistance program. Application - 15 970`'x.4 Description of local selection process for beneficiaries The selection process is based on the following criteria: 1. All households must meet income guidelines based on 80% of median income 2. Properties must be located within Weld County exclusive of the City of Greeley, Colorado 3, Applicants must qualify for a mortgage based on established underwriting criteria of the mortgagor. Application - 16 9705e,"::4 FORM A - SOURCES AND USES OF FUNDS NEW CONSTRUCTION (MULTI AND SINGLE FAMILY) or REHAB (MULTI FAMILY) Other Funding t oject Activities Total Project Cost State Funds Requested Amount Source St s A. Acquis n Costs 1. Land 2. Existing Struc res 3. Other B.Construction/Rehah:. (constr, contract costs) 1. Site Work 2. New Building 3. Rehabilitation 4. Performance Bond 5. Infrastructure/on-site 6. Infrastructure/off site 7. Landscaping 8. Contingency 9. Other C. ArchJEngineering Fees 1. Architect Fee 2. Consultant 3. Engineering Fees 4. Other D. Other Owner Costs 1. Appraisal 2. Building Permits 3. Tap Fees 4. Soil Test/Env. Sury 5. Other E. Interim Cos 1. Const tion insurance 2. C struction interest Constr. Loan/Orig. Fee 4. Other Application - 17 9 0,2, Other Funding Project Activities Total Project Costs State Funds Requested Amount Source St s F, Penn nt Financing. Fees Expenses 1. Credit R rt 2. Permanent L n Origination Fee 3. Title and Recordin 4. Attorney Fees 5. LIHTC Fees B. Other '.: G. Gevatepees Fee H. Tenant Relocation 1. Temporary Relocation 2. Permanent Relocation SUB TOTAL (A -H) I. Project Administration '.. 1. Marketing/Management 2. Operating Expenses 3. Real Estate Taxes 4. Other J. Grants Administration _ .. 1. Financial Reports 2. Program Reports 3. Payment Requests 4. Audit SUB TOTAL (I -J) GRAND TOTAL (A -J) SUMMARY OF FUNDING SOURCES (include Permanent Financing) Fund Amount Source (Loan or Grant) Term of Loa Interest Rate Total: Application - 18 970r51 FORM B - SOURCES AND USES OF FUNDS REHABILITATION - SINGLE FAMILY OWNER/RENTER OCCUPIED Pr ct Activities Total Project Cost State Funds Requested A. Rehabilitation 1. Labor/materials 2. Lead Based Paint Tes 3. Building Permit Fees 4. Other B. Replacement Housing 1. Labor/materials 2. Building Permit Fees Other C. Emergency Repairs 1. Labor/materials 2. Building Permit Fees 3. Other 4. Other SUB TOTAL 1A -CI P. General Administration 1. Salaries/Fringe 2. Reports/Pymnt Requests 3. Audit 4. O&E/Recording Fees 5. Office Supplies 6. Travel 7. Wor s Comp B. urance . Legal Notices Application - 19 Other Funding Amount Source Stat Committed 970.'5_ 1 4 10. - • Servicing 11. Other Indirece Share E. Direct Administration_..:. 1. Rehab Spec. Salary/Fringe 2. Travel 3. Other SUB TOTAL (D -E) GRAND TOTA Application - 20 970Z(7:4 FORM C - SOURCES AND USES OF FUNDS GENERAL HOUSING PROJECTS Other Funding Project Activities Total Project Cost State Funds Requested Amount Source Status A. 1st Time Homebuyers 1. Downpymt Assistance $100,000 $96,000 2. Closing Costs $4,000 WCHA 3. Interest Rate Buydown 4. Case Management 6. Other .. B 7`enant;Based Ben .h 1. Rent Payments 2. Case Management 3. Other C. Other 1 2 3 TAL (A -C) $100,000 596,000 $4,000 D. General Administration 1. Salaries/Fringe $2,000 $1,000 $1,000 WCHA 2. Reports/Pymnt Requests 3. Audit 4. O&E/Recording Fees 5. Office Supplies 6. Travel 7. Worker's Comp 8. Insurance 9. Legal Notices 10. Loan Servicing 11. Other To High Plains for Loan Processing $8,600 8600 SUB TOTAL (D):; 10600 9600 1000 GRAND TOTAL (A -D) $110,600 $105,600 5000 Application - 21 970E:14 CONSTRUCTION COST ESTIMATE WORKSHEET (To be submitted for any new construction or multi -family rehab projects) ATTACH A COPY OF THE PROJECT COST ESTIMATES. THESE MUST BE BASED ON CONTRACTOR OR ARCHITECT REVIEW OF ACTUAL DRAWINGS 979'! Application - 22 FORECASTED PROJECT CASH FLOW (Rental Housing Projects Only) INCOME EXPENSES # of Units Sq. Ft. Monthly Rent Total Annual Rent 0 Bdrm 1 Bdrm 2 Bdrm 3 Bdrm 4 Bdrm Total Rent Income Parking Income L. ndry Income Utilities (Owner paid) Management Fee Site Manager Salary (incl. taxes & benefits) Legal, Accounting, Audit Advertising Office Supplies Ot Income Trash Removal Vacancy Rate: Less Vaca Elevator Fire & Liabilit nsurance nnual Effeeoue tt ANNUAL DEBT SERVICE ntenance 1st Mortgage epairs 2nd Mortgage Groundskeeping (include snow removal) Other Debt Service (specify) Annual.Debt Ssrma R Estate Taxes Opera •g Reserve Replacem- 't Reserve ANNUi4GJ? TEN YEAR OPERATING PROFORMA Year 1 Year 2 Year 3 ar 4 Year 5 Total Income Less Vacancy Effective Gross Income Total Annual Expenses Total Debt Service Annual Cash Flow Year 6 Year 7 Year 8 Year 9 ar 10 Total Income Less Vacancy Effective •ss Income Total ual Expenses Tot. Iebt Service Annual Cash Flow Application - 23 970`:; :4 PROGRAM INCOME YES X NO Will any program income be realized? (Program income means amounts generated from the use of CDBG or HOME funds.) Local Government If yes, who will retain the program income? X Subrecipiient If yes, how will the retained program income be used? To make other loans to first time home buyers ENVIRONMENTAL ISSUES YES NO Has there been an evaluation of asbestos hazards? X Has there been an evaluation of lead -based paint hazards? X Will the project be undertaken in flood hazard areas? (Attach floodplain maps/studies reviewed in reaching this conclusion.). X Will the project be undertaken in geological hazard areas, or affect historical, archeological or cultural resources? X Will the project be located within 1,000 feet of a major highway, 3,000 feet of a railroad, 15 miles of a commercial airport or near some other major noise source? X Will the project be located within one -mile of above -ground storage tanks, transmission pipelines or loading facilities for explosive or fire -prone substances? X Will the project be undertaken near commercial airports or military airfields? X If you answered yes to any of the above, what alternatives have been considered? How do you plan to mitigate the adverse effects? Application - 24 Ac.g.PAITION, RELOCATION AND REPLACEMENT ISSUES Will the proposed project involve the acquisition of any land or buildings? YES NO X , Has the Fair Market Value of the property been established? YES NO X If yes, how? If by appraisal, send a copy of the appraisal: Has the seller/owner been notified of the Fair Market Value and signed the appropriate YES Voluntary Transaction forms (Sample forms start on page 16 of Attachments)? Date of Notification: NO Will the proposed project activity directly result in permanent, temporary or economic displacement? YES NO X If yes, are the displacees considered low income families or individuals? (include documentation of current resident incomes) YES NO If yes, what steps have been taken to minimize displacement? If yes, what assistance/benefits will be provided to displacees? Application - 25 970S1':4 Will the proposed project result in the demolition or change in the use of any existing low income housing units? YES NO X If yes, what plans have been developed to replace the units and ensure that they stay at or below "Fair Market Rent" for 10 years? SPECIFIC ACTIVITIES requiring determinations which must site the reasons why the activity is 'NECESSARY" and/or "APPROPRIATE^ !Attach the required determinations to your applicationj Activities carried out by subrecipients when such activities are not otherwise listed as eligible activities as ineligible -activities. Such activities are eligible when the grantee "determines that such activities appropriate to achieve its community development objectives." Specific Activity: and are not described are necessary or YES NO x Relocation payments and assistance not required by or above those required by the Uniform Act assistance are made pursuant to State or local law). Such activities are eligible "only upon the basis determination that such payments are appropriate." Specific Activity: (unless such payments or of a written YES NO x Preparation of applications for other federal programs. This activity is eligible if the applicant/grantee activities are necessary or appropriate to achieve its community development objectives." Fm HA Housing Preservation Grant Program Specific Activity: "determines that such YES x NO Loans for refinancing existing indebtedness secured by a property rehabilitated with CDBG funds. such financing is necessary or appropriate to achieve the (applicant/grantee's) community development Specific Activity: Such loans are eligible "if objectives." YES NO x Application - 26 9 l 0r'44 Will the proposed project result in the demolition or change in the use of any existing low income housing units? YES NO X If yes, what plans have been developed to replace the units and ensure that they stay at or below "Fair Market Rent" for 10 years? SPECIFIC ACTIVITIES requiring determinations which must cite the reasons why the activity is 'NECESSARY" and/or "APPROPRIATE." Attach the required determinations to your application_► Activities carried out by subrecipients when such activities are not otherwise listed as eligible activities as ineligible activities. Such activities are eligible when the grantee "determines that such activities appropriate to achieve its community development objectives." Specific Activity: and are not described are necessary or YES NO x Relocation payments and assistance not required by or above those required by the Uniform Act assistance are made pursuant to State or local law). Such activities are eligible "only upon the basis determination that such payments are appropriate." Specific Activity: (unless such payments or of a written YES NO x Preparation of applications for other federal programs. This activity is eligible if the applicant/grantee activities are necessary or appropriate to achieve its community development objectives." Specific Activity: "determines that such YES NO x Loans for refinancing existing indebtedness secured by a property rehabilitated with CDBG funds. such financing is necessary or appropriate to achieve the (applicant/grantee's) community development Specific Activity: Such loans are eligible "if objectives." YES NO x Application - 26 97 Oriel': 4 Additional signatures are required only in the case of "multi -jurisdictional" applicants. if this is a multi - jurisdictional application, the Chief Elected Official of each municipality and county participating in the application must sign. To the best of my knowledge and belief, statements and data in this application, including the required Application Statement of Assurances and Certifications, the attached tables and other documentation, are true and correct_ The submission of this application has been duly authorized by the governing body of'the applicant/lead jurisdiction and other participating jurisdictions. Signature, Chief Elected Official/Officer 03'/24/97 Signature, Chief Elected Official/Officer Name (Typed or Printed) George E. Baxter Name (Typed or Printed) Title Chair, Weld County Board of Commissioners Date Signature, Chief Elected Official/Officer Name (Typed or Printed) Title Date Title Date Signature, Chief Elected Official/Officer Name (Typed or Printed) Date Application - 27 Signature, Chief Elected Official/Officer Name (Typed or Printed) Title Date Signature, Chief Elected OfficiallOfficer Name (Typed or Printed) Title Date 970:744 Colorado Division of Housing Loan/Grant Programs APPLICANT STATEMENT OF ASSURANCES AND CERTIFICATIONS The applicant hereby assures and certifies that: (a) It: It) possesses legal authority to apply for the loan/grant and to execute the proposed project, and its governing body has duly adopted or passed as an official act a resolution, motion or similar action authorizing the filing of the application, including all understandings and assurances required, and directing and authorizing the applicant's chief executive officer and/or other designated official representatives to act in connection with the application and to provide such additional information as may be required; and (2) will give the State, the U.S. Department of Housing and Urban Development (HUD), and any state authorized representatives access to and the rights to examine all records, books, papers or documents related to the application and grant.. (3) it is following a detailed citizen participation plan which: (i) provides for and encourages citizen participation with particular emphasis on participation by persons of low and moderate income who are residents of areas which Community Development Block Grant (CDBG), Home Investment Partnership (HOME), Housing Development Grant (HDG) and Revolving Loan Fund (RLF) funds are proposed to be used; (ii) provides citizens with reasonable and timely access to local meetings, information, and records relating to its proposed and actual use of CDBG, HOME, HDG and RLF funds; (iii) provides for technical assistance to groups representative of persons of low and moderate income that request such assistance in developing proposals with the level and type of assistance to be determined by the applicant; (iv) provides for public hearings to obtain citizen views and to respond to proposals and questions at all stages of the community development program, including at least the development of needs, the review of proposed activities, and review of program performance, which hearings shall be held after adequate notice at times and locations convenient to potential or actual beneficiaries, and with accommodation for the handicapped; (v) provides for a timely answer to written complaints and grievances, within 15 working days where practicable; and (vi) identifies how the needs of non-English speaking residents will be met in the case of public hearings where a significant number of non-English speaking residents can be reasonably expected to participate. (4) has provided for and encouraged citizen participation, with particular emphasis on participation by persons of low and moderate income who are residents of areas in which CDBG, HOME, HDG and RLF funds are proposed to be used; by: (i) furnishing citizens information concerning the amount of funds available for proposed and housing activities and the range of activities that may be undertaken, including the estimated amount proposed to be used for activities that will benefit persons of low and moderate income. Its plans for minimizing displacement of persons as a result of activities assisted with CDBG, HOME, HDG and RLF funds and its plan for assisting persons actually displaced as a result of such activities; (ii) publishing a proposed project plan/application in such a manner to afford citizens an opportunity to examine its content and to submit comments on the proposed project plan/application and on the community development performance of the jurisdiction(s); (iii) holding one or more public hearings, as indicated below, to obtain citizens view and to respond to proposals and questions related to community development and housing needs, proposed activities and past CDBG, HOME, HDG, and RLF performances. All hearings were held no sooner than five days after Attachments - 2 9i0� 4 notice, at times and locations convenient to potential or actual beneficiaries, and with accommodation for the handicapped and for the needs of non-English speaking residents where a significant number of such residents could have been reasonably expected to applicant(s); Applicant/Participant* Date Time Location Weld County March 24, 1997 915 10th Street, Greeley, COI " In the case of a "multi -jurisdictional" application, each participating municipality and county must hold at least on public hearing. Signatur4 Chief Elected Official/Officer" 4/n/n Name (Typed or Printed) George E. Baxter Title Chair Date Signature, Chief Elected Official/Officer" Name (Typed or Printed) Title Date Signature, Chief Elected Official/Officer Signature, Chief Elected Official/Officer Name (Typed or Printed) Name (Typed or Printed) Title Title Date Date Signature, Chief Elected Official/Officer Signature, Chief Elected Official/Officer Name (Typed or Printed) Name (Typed or Printed) Title Date Title Date Additional signatures are required only in the case of -"multi -jurisdictional" applicants. If this is a multi -jurisdictional application, the Chief Elected Official of each municipality and county participating in the application must sign. Attachments - 3 970r) Or' ;r1 RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE PLAN for the Home Investment Partnership (HOME) Program and/or the Community Development Block Grant (CDBG) Program Weld County will replace all occupied and vacant occupiable low/moderate income dwelling units demolished or converted to a use other than as low/moderate income housing as a direct result of activities assisted with HOME funds, as required by Section 105(b) of the Cranston -Gonzales National Affordable Housing Act (42.U.S.C. 12705W)) and or with CDBG funds, as required by Section 104W) of the Housing and Community Development Act of 1974, as amended (the Act), and implementing regulations at 24 CFR 570.496a. All replacement housing will be provided within three years of the commencement of the demolition or rehabilitation relating to conversion. Before obligating or expending funds that will directly result in such demolition or conversion, Weld County will make public and submit to the State the following information in writing: 1. Description of the proposed assisted activity; 2. The general location on a map and approximate number of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than as low/moderate dwelling units as a direct result of the assisted activity; 3. A time schedule for the commencement and completion of the demolition or conversion; 4. The general location on a map and approximate number of dwelling units by size (number of bedrooms) that will be provided as replacement dwelling units; 5. The source of funding and a time schedule for the provision of replacement dwelling units; and, 6. The basis for concluding that each replacement dwelling unit will remain in a low/moderate income dwelling unit for at least 10 years from the date of initial occupancy. 7. Information demonstrating that any proposed replacement of housing units with smaller dwelling units (e.g., a 2 -bedroom unit with two 1 -bedroom units), or any proposed replacement of efficiency or single - room occupancy (SRO) units with units of a different size, is appropriate and consistent with the housing needs and priorities identified in the approved Comprehensive Housing Affordability Strategy (CHAS). To the extent that the specific location of the replacement housing and other date in items 4 through 7 are not available at the time of the general submission, Weld County will identify the general location of such housing on a map and complete the disclosure and submission requirements as soon as the specific data are available. Weld County Housing Authority at telephone number 356-4000 ext 4401 is responsible for tracking the replacement of low/moderate income housing and ensuring that it is provided within the required period. The Weld County Housing Authority at telephone number 356-4000 ext 4401 is responsible for providing relocation payment and other relocating assistance to any low/moderate income person displaced by the demolition of any housing or the conversion of low/moderate income housing to another use. The Weld County will provide relocation assistance, as described in 570.496a(b)(2), to each low/moderate income household displaced by the demolition of housing or by the conversion of a low/moderate income dwelling to another use as a direct result of assisted activities. Consistent with the goals and objectives of activities assisted under the Act, the Weld County will take the steps indicated below to minimize the displacement of persons from their homes:* Attachments - 13 970;714 The following are examples of steps to minimize displacement. The first two are required. The others are optional. Only check those which are appropriate for the project and local circumstances. Add other steps as necessary or appropriate. Provide substantial levels of relocation assistance, as required by 24 CFR 570.496a(b)(2). The substantial cost of providing such assistance serves as a strong deterrent to unnecessary displacement. Replace all occupied and vacant occupiable low/moderate income housing demolished or converted as a direct result of HOME -assisted project activities, and make such replacement housing affordable for at least ten years. The substantial cost of providing such replacement housing serves as a strong deterrent to unnecessary displacement. _ Consider all practical alternatives to any proposed project which may result in residential displacement. Alternatives to be considered include other sites for the proposed facilities/project. Also to be considered are the costs and benefits, both financial and nonfinancial, of each alternative. Provide counseling and referral services to assist displacees find alternative housing in the community. _ Work with area landlords and real estate brokers to locate vacancies for households facing displacement. Stage rehabilitation of assisted housing to allow tenants to remain during and after rehabilitation, working with empty buildings or groups of empty units first so they can be rehabilitated first and tenants moved in before rehab on occupied units or buildings is begun. _ Establish temporary relocation facilities in order to house families whose displacement will be of short duration, so they can move back to their neighborhoods after rehabilitation or new construction. _ Evaluate housing codes and rehabilitation standards in reinvestment areas to prevent their placing undue financial burden on long-established owners or on tenants of multi -family buildings. Develop displacement watch systems in cooperation with neighborhood organizations to continuously review neighborhood development trends, identify displacement problems, and identify individuals facing displacement who need assistance. _ Coordinate code enforcement with rehabilitation and housing assistance programs. _ Adopt policies to identify and mitigate displacement resulting from intensive public investment in neighborhoods. _ Adopt policies which provide reasonable protections for tenants faced with conversion to a condominium or cooperative. _ Adopt tax assessment policies, such as deferred tax payment plans, to reduce impact of increasing property tax assessments on low/.moderate income owner -occupant or tenants in revitalizing areas. 03/24/97 ignature-4 Chief Elected Official George E. Baxter Date Chair, Weld County Board of Commissioners NOTE: EACH MUNICIPALITY AND COUNTY DIRECTLY PARTICIPATING IN A MULTI -JURISDICTIONAL APPLICATION IS REQUIRED TO HAVE A RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE PLAN. Attachments - 14 970re,,4 DIVISION OF HOUSING DISCLOSURE REPORT PART 1: APPLICANT/GRANTEE INFORMATION 1. Application/grantee name, address and phone number: Weld County P.O. Box 758 Greeley, CO 80632 Federal employer identification number: 84-6000813 2. Indicate whether this report is: 3. Project Assisted/To be Assisted. a. Fiscal Year: 1997 Initial X Update b. Entitlement Grant(s) Competitive Grant X c. Amount requested/received: d. Program income to be used with (c) above: e. Total of (c) and (d): $1nc,Rnn inc Ann PART II: THRESHOLD DETERMINATIONS 1. Is the amount listed at 3(e) above more than 8200,000? 2. Have you received or applied for other HUD assistance (through programs listed in Instructions) which, when added to 3(e) above amounts to more than $200,000? If the answer to either 1 or 2 of this Part is "Yes," then you must complete the remainder of this report. If the answer to both 1 and 2 of this Part is "No," then you are only required to sign the following certification and need not complete the remainder of this report. I hereby certify that this information is true. Yes No Yes X No (Chief Elected Official/Title) (Date) Attachments - 9 9705. 74.4 PART III: OTHER GOVERNMENT ASSISTANCE PROVIDED/APPLIED FOR 1. Provide the requested information for any other Federal, State and/or local governmental assistance, on hand or applied for, that will be used in conjunction with the funds you are requesting from the Division of Housing. (See instructions) Name and Address of Agency Providing or to Provide Assistance Program Type of Assistance Amount Requested or Provided Colorado Association of Realtors 309 Inverness Way South Englewood, CO 80112 CARHOF grant $10,000 Attachments - 10 97( !14 PART IV: INTERESTED PARTIES Alphabetical List of All Persons with a Reportable Financial Interest in the Project Social Security or Employer ID # Type of Participation in Project Financial Interest in Project IS or %) None Attachments - 11 970F1.,1 41 PART V: EXPECTED SOURCES AND USES OF FUNDS This Part requires that you identify the sources and uses of all assistance, including the funds you are applying for/or have received from the Division of Housing, that have been or may be used in the Project. 9SOURCE USE No other Division of Housing Funds PART VI: CERTIFICATION hereby certify that the information provided in this disclosure is true and correct and I am aware that any false information provided or lack of information knowingly made or omitted may subject me to civil or criminal penalties under Section 1001 of Title 18 of the United States Code. In addition, I am aware that if I knowingly and materially violate any required disclosure of information„ including intentional nondisclosure, I am subject to a civil money penalty not the exceed $10,000 for each violations. 03/24/97 George'E. Baxter, Chair, Weld County Board of Commissioners (Chief Elected Official or Executive Director/Title) (Date) Attachments - 12 9701.7t!:4 MEMORANDUM TO: George E. Baxter, Chair Date: March 17, 1997 Weld County Board of Commissioners { , FR: Judy Griego, Director, Social Services Vl� RE: Down Payment Assistance Application r 11 I As discussed at the Housing Authority Work Session of March 17, 1997, this request would expand the down payment assistance program currently being administered by High Plains Housing Development Corporation to the balance of Weld County. We are proposing to provide down payment assistance for 24 households in Weld County during a twelve month period at an average costs of $4,000 per household. Total amount requested is $105,600. High Plains Housing Development Corporation will be used as the administering agency to determine the eligibility of the applicants for the program and for homeownership education. Once an applicant is determined eligible for the program, a 5 per cent interest rate loan will be provided. The term of the loan is 10 years.. Staff is recommending Board approval of the Down Payment Assistance Application. If you have any questions, please telephone me at 352-1551, Extension 6200. 970544 MEMORANDUM TO: George E. Baxter, Chair Date: March 17, 1997 Weld County Board of Commissioners FR: Judy Griego, Director, Social Services RE: Public Hearing For Down Payment As Application 0 The State requires that a public hearing be held prior to the submission of an application for CDBG or HOME funding. The Public Hearing has been scheduled as part of the Housing Authority Regular Board Meeting and should be held prior to the Board taking any action of the Down Payment Assistance. Application which is being presented as an agenda item. Issue to be resolved What will role will Weld County have in the administration of the program? At the Housing Authority Work Session of March 17, 1997, we briefly discussed the role of the County and the High Plains Housing Development Corporation in the administration of the Down Payment Assistance Program, should funding be approved by the State Division of Housing. As applicants for the program, Weld County will have responsibility for contract compliance with the State, should funds be awarded. As a part of that responsibility, we will be required to submit the necessary reports to the State concerning program and fiscal activity. Currently the City of Greeley serves as the fiscal agent for the High Plains Development Corporation; all payments to the title companies go directly to the title company from the City. According to Tom Teixeira, Director of the High Plains Housing Development 9 OrL':4 Corporation, he is under increasing pressure, as a Community Housing Development Organization (CHDO) to establish their own finance system. The rationale for this is to establish capacity as an agency. We currently have an agreement with the Greeley Urban Renewal Authority to do our work write ups for our housing rehabilitation program. With regard to that program, we maintain responsibility for all administrative functions under terms of our contract with the State. All accounting functions, rest with the County. Options are for: 1. The County to serve in a pass through role for all funds to High Plains Housing Development Corporation. High Plains would have responsibility for all fiduciary functions, as well as other functions. Weld County would retain contract compliance 2 The County to maintain fiduciary responsibility and contract other functions to High Plains. This arrangement is which currently exists between Greeley and High Plains. We would also service any loans made with County funding. Our recommendation is to maintain fiduciary responsibility and service any loans made through County funds. The reason for this recommendation is that we would continue to be responsible for all contractual provisions of grants provided to Weld County. This approach would assure better controls. By servicing the loan, we can continue to assure that Weld County borrowers (outside the City of Greeley) have an opportunity to become homeowners. 970.t7t4 Hello