Loading...
HomeMy WebLinkAbout96-14 RDA Resolution RESOLUTION NO. RDA 96-14 A RESOLUTION OF THE REDEVELOPM[ENT AGENCY OF THE CITY OF TEMIECULA TO ESTABLISH THE FIRST TIME HOMIEBUYER PROGRAM TO ASSIST LOW AND MODERATE INCOMIE PERSONS IN THE PURCHASE OF SINGLE FAMILY RESIDENTIAL HOUSING FOR THE PURPOSES OF INCREASING, IMPROVING AND PRESERVING THE SUPPLY OF LOW AND MODERATE INCOMEE HOUSING WITHIN THE REDEVELOPMENT PROJECT AREA AND THE CITY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES RESOLVE AS FOLLOWS: Section 1. The Redevelopment Agency does hereby find, determine and declare that: A. The Agency is currently implementing the Redevelopment Plan for RedevelopmentProject No. 1--1988, originally approved by the Board of Supervisors on July 12, 1988 prior to the incorporation of the City and subsequently approved and transferred to the Redevelopment Agency of the City of Temecula on April 9, 1991 (the "Plan"). B. The Agency has established a Low and Moderate Income Housing Fund pursuant to the provisions of Health and Safety Code Section 33433 for the purposes of increasing, improving and preserving the supply of low and moderate income housing within the Project Area and the City. C. The Agency proposes to establish the First Time Homebuyer Program to provide financial assistance to low and moderate income persons in the purchase of single family residential housing for the purposes of increasing, improving and preserving the supply of low and moderate income housing within the Project Area and the City. D. The acquisition of properties for low and moderate income housing purposes is consistent with the Redevelopment Plan and with the Implementation Plan adopted by the Agency. Additionally, acquisition of properties and the improvement and preservation of low and moderate income housing thereon will assist in the elimination of blight in the Project Area. E. The acquisition of properties and the units thereon is exempt from the provisions of the California Environmental Quality Act pursuant to 14 Cal. Admin. Code 15326. Moreover, the EIR approving the Plan addressed the impacts of housing development in the area of the Properties. Resos.RDAN96-14 Section 2. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby approves the First Time Homebuyer Program, authorizes the expenditure of $250,000.00 from account number 165-199-999-5449, and authorizes the Chairperson to execute agreements with individuals in substantially conformance with the parameters of the program set forth hereto as Exhibit A. Section 3. The Secretary shall certify the adoption of this Resolution. Section 4. PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Temecula on June 25, 1996. Patricia H. Birdsall, Chairperson ATq'EST: JW S-.) Greek, CMC City Clerk/Agency Secretary [SEAL] STATE OF CALIFORNIA COUNTY OF RIVERSIDE Ss CITY OF TEMECULA I, June S. Greek, City Clerk of the City of Temecula, do hereby certify that Resolution No. RDA 96-14 was duly and regularly adopted by the Redevelopment Agency of the City of Temecula at a regular meeting thereof, held on June 25, 19969 by the following vote, to wit: AYES: 5 AGENCY MEMBERS: Birdsall, Ford, Roberts, Stone, Lindemans NOES: 0 AGENCY MEMBERS: None ABSENT: 0 AGENCY MEMBERS: None June S. Greek, CMC City Clerk/Agency Secretary Resos.RDA\96-14 2 EXHIBIT "A" CITY OF TEMECULA REDEVELOPMENT AGENCY FIRST TIME BUYER PROGRAM What is the First Time Buyer Down Payment Program (FTHB)? The City of Temecula FTHB Program is designed to provide assistance to lower income persons in the purchase of their first home. Assistance may be provided for a portion of the down payment and/or closing costs associated with the purchase of a home. The amount of assistance available depends upon the buyers qualifications and the price of the home. In general, the maximum amount of assistance is twenty percent (20%) of the purchase price plus closing costs, up to a total payout of $25,000. Who qualifies for the FTHB Program? The three basic qualifications for the FTHB Program are (1) the buyer must be a first time home buyer; (2) the buyers annual income must be eighty (120%) or less of the area median income; and (3) the home being purchased must be located in a qualifying location and the purchase price must be within the program price limit. What is a first time home buyer? In order to qualify as a first time home buyer, the purchaser cannot have owned a home for the previous three years from the date of application to the FTHB. The purchaser must sign a sworn application attesting that they have not owned a home. In addition, the last three years tax returns will be reviewed to ascertain that no mortgage interest or real estate tax deductions have been claimed. For the purposes of determining home ownership, a dwelling unit that was not permanently affixed to a permanent foundation (ie, a mobile home) shall be not included in the three year requirement. What are the qualifying incomes? In order to be eligible for this program, the buyers annual income shall not exceed 120% of the are median income, as determined by HUD, adjusted for family size. In addition, assets shall not exceed these limits. Currently, the income limits are as follows: FAMILY SIZE MEDIAN MAXIMUM ANNUAL ANNUAL INCOME INCOME 1 Persons 30,300 36,350 2 Persons 34,650 41,550 3 Persons 38,950 46,750 4 Persons 43,300 51,950 5 Persons 46,750 56,100 6 Persons 50,250 60,250 7 Persons 53,700 64,400 8 Persons 57,150 68,550 Figures are per the Department of Housing and Community Development, Division of Housing Policy Department, Riverside County, January 1996, What are the other buyer requirements? The buyer must have sufficient income and creditworthiness to qualify for a first mortgage through one of the Participating Lenders. In addition, the buyer must provide a minimum of three percent (3%) of the purchase price as a down payment from their own fun(ts and must accept the highest loan-to-value ratio first loan for which they qualify. R:~FIOUSING-'~IRSTI]~E.CC 6/17/96 cd~ For example, to purchase a home costing $100,000, the buyer must contribute $3,000 towards the down payment. What is the maximum home price? The maximum home purchase price under this program is $120,000. The appraised value of the property cannot exceed this limit. The FTHB assistance will be based on a percentage of the home sales price which shall be justified by an appraisal. What kinds of properties are eligible? The FTHB program may be used to purchase any new or resale home that is: (1) permanently fixed to a permanent foundation, (2) has a minimum of two bedrooms, and (3) is currently occupied by the Seller or vacant (tenant occupied homes are not eligible.) The home must be in sound conditions and meet the Housing Quality Standards as determined by RDA. The purchaser must reside in the home as his or her principal residence within sixty (60) days of purchase and the home shall not be used as a business nor as a vacation (second) home. A home shall not be eligible for purchase under this program unless it meets applicable Building and safety standards and is suitable for occupancy upon purchase. Furthermore, the borrower shall agree to maintain the home in good condition for the term of the RDA assistance. To this end, the purchaser shall be required to obtain a one-year home warranty as part of the home purchase. The costs of the home warranty are eligible for financial assistance under the FTHB program. R:~IOUSIN~STIME.CC 6/18/96 cdr