11-25-2002 Council Packet - Laserfiche WebLink

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3. As of today there are numerous programs for low and moderate-income first time homebuyers that would be available to finance the purchase or assist in the purchase of the proposed units In Orono. A. -The aforementioned MHFA - CASA program has been available for several years and should be available in 2004. The one point that needs to be made is that CASA is a Community ACTIVITY Program, which does entail some participation on the part of the city. B. Federal National Mortgage Association (FNMA) first time and low Income programs that assist buyers to qualify with very low downpayments (3%). There are variations of these programs also available through Federal Home Loan Mortgage Corporation (FHLMC). FNMA and FHLMC are the largest sources of mortgage funding and continue to enhance their offerings of programs to assist buyers for developments such as yours. C. Bank sponsored programs may be available that can provride additional low downpayment options and aid in funding some buyer’s closing costs. . D. Assistance from grants or gifts acquired from non-profit organizations to aid low and moderate-income buyers buy homes. 4. In planning for purchases of properties closing two plus years in the future it Is difficult to estimate what will be available or what will be the terms for maximum sale prices or income levels. The best assumptions would be that we can use today’s numbers and if there are properties that fit into those guidelines these properties could be offered as “affordable housing" units under the requirements of the Metropolitan Councils affordable guidelines when marketing begins in the future. Whenever we deal with new constmction affordable housing it is a moving target. The maximum allowable sale price moves, as does the maximum allowable income. Also because there are numerous guidelines that do not necessarily move in tandem. There have been instances where a sales price limit has not changed for years but income limits have changed annually. However, from a financing standpoint it should be safe to say that if you have units available at a sale price of under $200,000 when you begin marketing the condominium units (2004) they should qualify as affordable units according to the Metropolitan Council and MHFA and be eligible for some and hopefully numerous financing programs at that time. Before you and the city select the specific criteria for affordable housing In this development it would seem prudent to reevaluate the situation in mid to late 2003 when you will be able to establish approximate sale prices in the condominium building and we will be in possession of then current, updated information on financing programs. I will be traveling on business until 8-26. use OAONO AFTOnO House • Dsn $«• •.2M1