Title
Request for Grant/Loan Forgiveness - Joyce Henry-Hettel (B)
The City Commission is asked to consider Ms. Hettel’s request for forgiveness of the City’s $12,015 Homeowner Rehabilitation Program loan. *ESTIMATED STAFF ORAL PRESENTATION TIME 7 MINUTES**
Explanation
The Homeowner Rehabilitation Program is designed for City homeowners who need financial assistance to correct health and safety violations in their homes. The Homeowner Rehabilitation Program addresses the housing needs of eligible low-income homeowners by providing repairs to eliminate unsafe and unsanitary housing conditions such as roofing, electrical, plumbing, heating, structural damage, doors/windows, and handicapped accessibility. The core purpose of the Homeowner Rehabilitation Program is to improve the health and safety conditions of a homeowner’s home to preserve the housing units, stabilize the City’s housing stock, and revitalize neighborhoods.
To implement and administer the Homeowner Rehabilitation Program, the City utilizes federal and state funding such as Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and State Housing Initiative Partnership (SHIP). The City provides 100% of the total cost of the housing repairs to improve the homeowner’s home. As such, the program assistance is provided to homeowners in the form of a due on sale loan, which requires that homeowners agree to own and occupy their home as a primary residence during a 10-year compliance period. The City holds a lien encumbering the property as evidenced by a promissory note and a mortgage executed by the homeowners, which is recorded in the public records of Alachua County.
If the homeowner ceases to own or occupy their home as a primary residence prior to the end of the compliance period, the entire balance of the assistance must be repaid to the City. In most cases, homeowners complete the 10-year compliance period. However, in some cases, homeowners elect to sell their home pr...
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