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HomeMy WebLinkAboutR00-052 Utilizing funding from Colorado Association of Realtors to provide housing assistance( C Commissioner It moved adoption of the following Resolution: BOARD OF COUNTY COMMISSIONERS COUNTY OF EAGLE, STATE OF COLORADO IN RE THE MATTER OF UTILIZING FUNDING FROM THE COLORADO ASSOCIATION OF REALTORS HOUSING OPPORTUNITY FOUNDATION TO PROVIDE HOUSING ASSISTANCE RESOLUTION NO. 2000. 05a WHEREAS, Eagle County, Colorado ( "County ") is a political subdivision of the State of Colorado ( "State "), duly organized and existing pursuant to the laws and the Constitution of the State; and WHEREAS, the Board would like to maintain a program to assist persons to become homeowners; and WHEREAS, there is a need to obtain funding to continue this program; and WHEREAS, the Colorado Association of Realtors Housing Opportunity Foundation (CARHOF) is donating money for this program. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO: THAT, it authorizes its chairman and staff to take all action necessary to utilize funding from CARHOF. THAT, all action (not inconsistent with the provisions of this Resolution) heretofore taken by members of the Eagle County Board of County Commissioners or staff toward acquiring funding for the program shall be, and the same hereby is, ratified, approved, and confirmed. THAT, this Resolution is necessary for the public health, safety and welfare of the citizens of the County of Eagle, State of Colorado. l MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held the ?' day of 2000. Clerk to the Board of County Commissioners ti 7, 1 ;91 g k oAE P- COUNTY OF EAGLE, STATE OF COLORADO, by and Through Its BOARD OF COUNTY COMMISSIONERS Chairman A l ohn 4 nefte • •fi Michael L. Gallagher Commissioner Commissioner seconded adoption of the foregoing resolution. The roll having (been called, the vote was as follows: Commissioner Tom C. Stone Commissioner Johnnette Phillips Commissioner Michael L. Gallagher Qom, This Resolution passed by 3 - 0 vote of the Board of County Commis-. sioners of the County of Eagle, State of Colorado. OFFICE OF THE BOARD OF COMMISSIONERS (970) 328 -8605 FAX (970) 328 -7207 TDD (970) 328 -8797 Email: Eagleco @vail.net http: / /www.eagle- county.com EAGLE COUNTY, COLORADO Board of Directors Vail Board of Realtors P.O. Box 7507 Avon, Colorado 81620 Dear Friends: JOHNNETTE PHILLIPS JAMES E. JOHNSON, JR. TOM C. STONE As a County Commissioner and as a Realtor, I see enabling our local residents to become homeowners as one of the greatest challenges we face. Given the high real estate prices in this area, one of the biggest obstacles preventing people from becoming home owners is often the lack of an adequate down payment. The Vail Board of Realtors has joined in the past with the Board of County Commissioners by making a generous donation of CARHOF funds to the Eagle County Down Payment Assistance Program. As you are aware, the assistance is provided to families as a loan which is paid back so that the funding can be recycled to future families. However, this process takes time, and the program has been so successful that virtually all of the funding, earmarked for moderate income families has now been exhausted. It is for this reason that we are seeking additional CARHOF funding for this very worthy effort. At this point, time is of the essence in securing additional funding. We have established the program through a great commitment of up front time and resources including meeting legal requirements, extensive marketing, and developing a vital network of participating lenders. If there is no further funding, this momentum, which has been painstakingly built up, will be lost. Please join with us again to keep this program going forward. Thank you for all possible consideration you can kindly give this funding request. With best regards, To C. Stone Chairman Eagle County Building, 500 Broadway, P.O. Box 850, Eagle, Colorado 81631 -0850 C - 1 COLORADO ASSOCIATION OF REALTORS HOUSING OPPORTUNITY FOUNDATION ( CARHOF) FUND APPLICATION (See application format below) Date: February 9, 2000 Board Name: Vail Board of Realtors Amount Requested: $ all available funds . Note: Please fill out this form completely. "Not Applicable" ( "NIA') should be noted if a question does not pertain to the project for which funds are requested. A. APPLICANT IDENTIFICATION Applicant Name Eagle County Mailing Address P.O. Box 179, Eagle, CO 81631 Contact Person David Carter Title Manager, Housing Division Phone (9701328 -8876 Please check the phrase that best describes the applicant. 501(c)3 Housing Authority X Political Subdivision Other (please specify) Briefly describe the project, target population including income levels, and the number of households benefitting from the project. The project will provide down payment assistance to help moderate income families in Eagle County purchase a home. The number of households benefitting from the project will be dependent on the level of funding received. The information represented herein and the attachments are true and accurate to the best of my knowledge. I understand that the CARHOF Board of Directors may review any documents or instruments relating to the prudent analysis of the applicant and may conduct site inspections. Eagle County Applicant Date 4 0 4-A C2 ct 4-j Cd 0 m S3 tn C14 1- 6 _Jci yU k 0 1 U. Narrative A. Mission statement or brief statement of organization's goals and/or objectives Eagle County is a county government which provides a full range of local government services. The Board of County Commissioners is concerned about providing housing opportunities for those who work and live in Eagle County, and it established the Eagle County Housing Division to create opportunities for local residents housing. B. Brief summary of organization's history The Eagle County Housing Division was established in 1995. Since that time it has been engaged in a variety of activities which are summarized below. C. Description of current programs, activities and accomplishments The Eagle County Housing Division develops, implements, and administers programs to provide housing opportunities for local residents. These opportunities include mortgage assistance programs, apartments, rental subsidy assistance; and other efforts described in the County's official housing policies as contained in the Eagle County Comprehensive Housing Plan. In addition, it continually monitors the local housing market and prepares reports documenting real estate trends. A major effort has been the Down Payment Assistance Program, which was established.to create home ownership opportunities. It is a community based affordable housing initiative, which is overseen by the Eagle County Down Payment Assistance Committee. The revolving fund for this program was set up with assistance from a variety of funding sources including CARHOF. The program has been so successful that nearly all the funding for moderate income households has now been committed. While loan repayments from assisted families will eventually allow additional loans to be made, this will take time. At present, there is an urgent need for additional financing to keep the program going. M. PURPOSE OF GRANT A. A concise project description in narrative form. The narrative should include the goals, project scope, and the proposed use of the requested funds. Also include type site specific, i.e. new construction, rental, single - family, multi- family, elderly, rehabilitation, family, home ownership, or not site specific. The Down Payment Assistance Program implements CARHOF's goal of facilitating and increasing housing opportunities. It assists persons become homeowners by lending money toward the down payment, closing costs, and prepaid expenses. The program has been so successful that virtually all of the funds for moderate income households have been committed, and it will not be able to make any further loans to this income group until the fund is recapitalized. While repayments from program participants will eventually allow additional loans to be made, this will take tune. The present request to CARHOF is for additional funding to maintain the momentum of the program. The homes to be financed will include a variety of housing types located throughout Eagle County. At this point there is an urgent need for this additional assistance. Over time, numerous mortgage lenders have been contacted and now offer the program to their clients. If there is no longer funding, these lenders will lose interest and no longer form part of the vital network required to make this program available to the public. In addition, there has been considerable marketing done for the program and there is a high level of awareness in the community that it exists. Having to now halt the program would waste this previous investment of time and effort. One of the most important values of the CARHOF funding is that it allows moderate income households to be assisted. This has been the area of greatest demand for the program, and given the very high housing prices in Eagle County, these families are in great need. While there is still HUD funding available in the program to assist low income households, the other sources of funding used for moderate income families have been virtually exhausted. B. Statement of need /problem to be addressed and include the number served, target population, and how they will benefit. There is a critical need for housing assistance in Eagle County. The people who live and work in Eagle County are increasingly being priced out of the housing market. This is particularly true in regards to home ownership. Evidence of the problem includes the following: C COMPARATIVE HOME OWNERSHIP RATES 1990 66% 64% - ----------------------------- 62% -- - - - -- --------------- 60% - - -- ------ - - - - -- 58%---- - - -- ------ -- - -- - -- 56% - --- -- - ---- 54% United States Colorado Eagle County Source: U.S. Census • The rate of home ownership in Eagle County is one of the lowest in the state. Out of the 63 counties in Colorado, Eagle County has the seventh lowest rate of home ownership. • In 1990 housing prices were 64% higher in Eagle County than for the state as a whole and 70% higher than in the nation. It is likely this differential is much larger today. • The median price of all houses in Eagle County for 1998 was $277,900 (average price $451,683). The median price of a single family home was $362,500 (average price $596,115). Housing prices are rising very rapidly in Eagle County with the median price of a home increasing 119% from 1990 until 1998. However, in Eagle County wages are not keeping up and only increased 49 %during the same period. • In 1998 a household would have needed 3.5 average . wage jobs in order to have purchased the median priced single family home. • The number of workers commuting into the county from elsewhere has increased 700% during the nineties. This is largely due to their inability to afford housing within the county. One way that people in Eagle County seek to cope with high housing prices is by working extremely hard, with 90% of the. residents sixteen years of age or older being in the workforce. (This compares with 76% at the state level and 70% at the national level). In addition, the percentage of women who work in Eagle County is the third highest of any C CUMULATIVE PERCENTAGE INCREASES IN EAGLE COUNTY 120% 100% 80% HOUSING PRICES 60% 40% AVG. WAGES 20% 0% 1990 1992 1994 1996 1998 -� HOUSING PRICES -a- AVERAGE WAGES Sources: Eagle County Assessor's Office and Colorado Department of Labor county in the nation. Nevertheless, families are still not able to keep up with the expensive housing prices. Compounding the problem is that the average wages in the county are considerably below the average wage level in the state. (In 1998, the most recent year for which data is available, the average wage in Eagle County was only 85% of the statewide average wage). The County is thus faced with a difficult combination of high housing costs and relatively low wages. There is an ever increasing gap between what is available and what people can afford, and people need a helping hand to bridge this gap. Often persons - are paying rents that are the equivalent of housing payments, and with down payment assistance, these persons can become homeowners. The Down Payment Assistance Program is an important solution in moving families into homeownership. C. Description of program goals and measurable objectives. The program goals are to continue to make loans for assistance with down payments, closing costs, and prepaid expenses. The success of the program is measured in the number of families assisted to become homeowners and this number will depend on the size of the grant received. _ > f D. Description of programs and activities to accomplish these goals, i.e. is this a new or ongoing activity on the part of the sponsoring organization. The Eagle County Down Payment Assistance Program was established in 1998. Since that time more than twenty -one families have been helped to obtain their homes through this program. While there is still some remaining funding reserved for .low income families, the funding for moderate income families has been nearly exhausted. The new grant from CARHOF will allow for continued assistance to moderate income families. E. Other organizations, if any, participating in the program, including in -kind involvement. Organization Involvement Eagle County Cash contribution and administration Down Payment Assistance Committee Program oversight Colorado Division of Housing Cash contribution Norwest Bank Cash contribution FirstBank Cash contribution Alpine Bank Marketing assistance Colorado Housing Assistance Corp. Loan servicing F. Long -term sources /strategies for funding the program at the end of the grant period. The assistance is provided as a loan to families which is repaid to the revolving loan fund. Once this fund grows large enough, it has the capacity to be self sustaining as enough loan payments flow in to allow new loans to be made. G. Estimated start and completion dates of the project. The project will be able to continue as soon as new funding is received. All necessary support structure is already in place. The program is set up as a revolving loan. fund and is meant to last indefinitely. C H. Will any services other than housing be provided to the persons under this project? All of the actual grant funds will be used to help households with down payment, closing costs, and prepaid expenses. However, in association with the program, there have been ongoing homeownership classes provided to educate persons on home buying and subsequent ownership. IV. EVALUATION A. Expected results during the funding period. Results will be virtually immediate as all grant funds received will be rolled into the program and made available as loans. The number of loans which can be made will be dependant on the amount of funding received. B. How will you define and measure success? Each family enabled to become a homeowner constitutes a success. C. How will the project's results be used and/or disseminated? We receive calls from outside areas which ask for guidance, on how to set up a down payment program. In response, we assist them by letting them know how we started and operate the program. V. ATTACEaMNTS C; C, A. Board of Directors information Eagle County overall is governed by its Board of County Commissioners. At present, the county commissioners are as follows: Tom C. Stone, Chairman and Country Commissioner from District 3 James E. Johnson, Jr., County Commissioner, District 1 Johnnette Phillips, County Commissioner, District 2 The Board of County Commissioners has appointed a special committee, the Eagle County Down Payment Assistance Committee, to oversee this program. The members of this committee are as follows: EAGLE COUNTY DOWN PAYMENT ASSISTANCE COM UTTEE Ginger Marshall, Loan Officer, Norwest Mortgage Kim Morwood, Realtor Laurie Bower, Associate Broker, Black Bear Real Estate Company Bob Finlay, Realtor, CARHOF Phil Frank, President, Alpine Bank Christie Banowetz, Account Representative, First American Heritage Title Company Higinio H. Romero, Citizen Member Gayle Reid, Community Banking Manager, Norwest Bank Earl Glenwright, Habitat for Humanity Leslie Allen, Administration Manager, Eagle River Water & Sanitation District Lucy Barker, Manager, Golden Eagle Apartments Nola Smith, Vice President, FirstBank• Dan Wallace, First Vice President, WestStar Bank 0 0 B. List of names and qualifications of key staff. The key staff members are as follows: David Carter, Manager, Eagle County Housing Division. Mr. Carter has been in this position for about four and one -half years and administers a variety of housing programs for Eagle County. Nancy Busch, Housing Technician, Eagle .County Housing Division. Ms. Busch has been in this position for about three years and one of her day -to -day functions is direct involvement with the Eagle County Down Payment Assistance Program. She handles marketing, informs interested applicants about the program, and maintains records on the program. C C. Most recent financial statements (audited if available) Please see accompanying information. C) D. Current agency budget f Please see accompanying information. 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U Q O 69 � w H D M M U r r N a 0 w M W Q O N ° o Z R O 6 Q J o a �a �m� F U) W Q �Q LLI _ o2 UZ ;? 0 � cr- Q cn Q1 O �- °Z a0a0 r N V a� w Y C fQ O C t0 VJ rn C C `1 c to m J C" E. Annual report (if available) Eagle County provides a full range of local government services. However, it does not produce an annual report. F. Project budget This program can use all available CARHOF dollars. All money granted will be put directly into making loans. Eagle County will provide program administration so none of the CARHOF funds will need to be used for administration. G. ERS determination letter confirming 510(c)3 status This is not applicable since Eagle County is a unit of local government. H. Articles of Incorporation This is not applicable since Eagle County was established by the State of Colorado. I. Location map of the site This is not applicable since homes will be financed throughout Eagle County. J. List of major contributors to the organization/program (optional) Major contributors to the program are Eagle County, Colorado Division of Housing, CARHOF, Norwest Bank, and FirstBank. COLORADO S S O C I A T I O N O F R E A L T O R S' W 0 CD CD En Cn Cn 0 c rn _ CD 0 0 a C 0 00 0 N Cn 0 E W 0 W J Ca 0 0 co Cn T D X w 0 W cfl 0 14 N CM co March 17, 2000 David Carter Eagle County PO Box 179 Eagle, CO 81631 Dear David: MAR 9 o 2000 The Colorado Association of - REALTORS® Housing Opportunity Foundation ( CARHOF) is pleased to announce funding for your organization in the amount of $43,962.33 as outlined in your grant application. We are delighted that we can accommodate you with funding for your project. Please acknowledge acceptance of this grant by signing and returning the attached statement. By signing this acknowledgement, you agree with the terms of the grant. Checks will be forwarded to your local Board of REALTORS® for a formal presentation by your CARHOF representative. We wish you every success and look forward to hearing about the progress of your project. If you have any questions regarding this grant, please contact me at (303)790 -7099 or (800)944 -6550. Sincerely, lie Bramer CARHOF Administrative Director 1 COLORADO S S O C I A T I O N O F R E A L T O R S W 0 CM CD CD W Cn 0 c Fr M _ CD 0 0 a 0 00 0 N C.n 00 L._. W 0 C to 0 0 Cfl Co T D X w 0 w 0 4 N CO CD f. ACKNOWLEDGEMENT OF CARHOF GRANT Eagle County (RECIPIENT) agrees to spend grant funds provided by CARHOF in the amount of $43,962.33 in accordance with the RECIPIENT'S, grant application. By law, the grants are restricted for use in Colorado only. The RECIPIENT agrees to submit a report on use of funds within one year of receiving this grant. The RECIPIENT also agrees to indemnify, within the limits permitted by law, CARHOF, its Board of Directors and its employees against actions arising from this project. Signature of RECIPIENT Printed or typed name Date Title Make check payable to: Return to: Julie Bramer CARHOF 309 Inverness Way South Englewood, CO 801.12