SUBJECT:
Title
Request Approval of Agreement Between Marion County and Homeowner for State Housing Initiatives Partnership Housing Rehabilitation and Selection of Payment Option
Body
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INITIATOR: |
DEPARTMENT: |
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Cheryl Martin, Director |
Community Services |
DESCRIPTION/BACKGROUND:
Due to a recent unforeseen circumstance, Community Services has developed a pilot housing replacement program for homeowners whose home has been determined to be beyond repair and unsafe to live in by a licensed official such as a fire marshal, engineer, building official etc. As such, Community Services request future direction from the Board on preferences for requirements of this program noting that individual circumstances are unique and needs may change. State Housing Initiatives Partnership (SHIP), Community Development Block Grant (CDBG) and HOME Initiative Partnership (HOME) funding may be used on such projects.
Mr. Damron’s mobile home caught fire and was completely destroyed on February 10, 2022 leaving him and his disabled brother homeless. Mr. Damron was referred to Community Services for grant funding on March 17, 2022, and is income eligible under Marion County’s SHIP program. Mr. Damron will be responsible for securing a replacement manufactured home with assistance from Community Services per attached Agreement. A SHIP Mortgage and Note will be recorded with the Marion County Clerk of Court in the amount of assistance. The Board is being asked to consider the following payment options:
1. Monthly payment on 50% of loan amount over a 20-year period plus escrow of taxes and insurance.
Example: Half of $150,000 of assistance will be repaid over 20 years
$150,000 / 2 = $75,000 / 20 years = $3,750 / 12 months = $312.50 monthly (plus 1/12 real estate taxes and homeowner’s insurance each month, recalculated annually)
2. Monthly payment on 50% of loan over 20-year period based on 30% of annual gross income.
Example: $42,172 (annual income) x 30% = $12,651.60; $12,651.60 / 12 = $1,054.30 (1/12 Real estate taxes and homeowner’s insurance each month will be calculated and deducted from monthly payment amount, recalculated annually)
3. No mortgage payment on loan over a 20-year period maintaining a 20-year deferred mortgage.
(Must pay 1/12 real estate taxes and homeowners’ insurance each month, recalculated annually.)
Considering Mr. Damron’s income, Community Services recommends option three. Since the County will maintain the mortgage, Community Services will collect payment for homeowner’s insurance and taxes to prevent tax delinquency.
This agenda item also requests authorization for the Chairman to enter into amendments to this Agreement so as long as the amount of funding is not increased and the payment options are as the Board directs.
BUDGET/IMPACT:
Neutral; not to exceed $150,000
RECOMMENDED ACTION:
Recommended action
Motion to approve one of the three payment options; approve and authorize Chairman to execute all necessary documentation for the Agreement between Marion County and Mr. Damron for SHIP funding not to exceed $150,000; and authorize the Chairman to enter into amendments to the Agreement so long as the amount of funding and the payment options remain unchanged.
end