Loading...
HomeMy WebLinkAboutGlacier Affordable HousingGlacier Affordable Housing. Founda'hon March 12, 2003 MAR * 7 2003 CITY OF LAUREL Mayor John E. "Bud" Johnson and City Council City of Laurel P. O. Box 10 Laurel MT 59044 Dear Mr. Johnson: Glacier Affordable Housing Foundation (GAHF) is pleased to offer its services to the City of Laurel to provide down payment and closing cost assistance to first time homebuyers within the city limits of Laurel. Glacier Affordable Housing Foundation (GAHF), a 501 (c) 3 organization, was formed in 1995. Glacier Affordable Housing Foundation's mission ~s to provide affordable housing opportunities for low-to-moderate income people living in Montana. By partnering with many entities, this mission can be more fully realized. Funds awarded re "grantees" (entities which are awarded HOME and/or CDBG grant funds) are channeled through GAHF m provide down payment and closing cost assistance to first time homebuyers who have incomes at or below 80% of median income of the County in which the homebuyer is located. GAHF is entering rote its eighth year of providing services. There are over 205 loans in its portfolio, representing 10 different grants, with down payment and closing cost assistance exceeding $3 million. Ali funds provided to eligible participants are secured through GAHF's "Resale Restriction Agreement" (RRA) that contains a recapture clause that requires the loan to be paid in full at the time of resale or refinance of the home. A Trust Indenture is filed in the name of Glacier Affordable Housing Foundation m secure the lien in the amount of the assistance. No interest accrues and no monthly payments are required. This feature allows a first time home buyer to increase his/her purchasing power substantially as there is no monthly debt calculation related to the home purchase. An equity share provision in the RRA requires the owner m share the equity with the Foundation to the extent the assistance represents of the original purchase price, e.g., a home costing $120,000, receiving $30,000 of assistance will require the homeowner m pay the Foundation 25% of the equity accrued. As home prices are anticipated to continue increasing, the equity share provision allows the Foundation to utilize the equity monies to provide subsidy to the next generation of first time homebuyers. When the funds they are made available m low-to-moderate income homebuyers in the j' served by the original funding source. P.O. Box 27 · 202 Main Street o Kalispell, MT 59903 Glacier Affordable Housing Foundation can play a particularly important role when an entity lacks the resources and/or the desire to provide the on-going reporting requirements of the funding source. In addition, GAHF has the ability to '~up front" the funds necessary for the down payment and closing cost assistance so that a home loan closing can occur as scheduled. Therefore, the closing does not hinge upon receipt of the grant funds from the State Department of Commerce. The grantee can then process a claim for reimbursement to the State and return the funds to the Foundation within a 30-day period. I have enclosed a sample of a Management Plan which details the responsibilities of the parmers within a First Time Homebuyer Program. If you have any questions, please contact Ms. Lynn Moon, Affordable Housing Consultant for Glacier Affordable Housing Foundation at 406-758-7741. Lynn will coordinate the program with Mr. Jim Walker, Western Security Bank Billings, who will be the Foundation's local contact person. Best wishes for a successful application. ~~.~ ~Sincerely, Stephen J. Van Helden Chair Cc: Casey Joyce, Big Sky EDA Jim Walker, Western Security Bank Encl.