06&07 Housing Infrastructure Grant State Funding Program

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As part of the City's review of the ho o the ICi '~saponsult nt after the p opertya bsoldr is qualified or not is made available t Y Prior to learning of the additi from thle devleltopeh on he homes th~atlwe e obv o~sly attempts to obtain paperwork being constructed and sold in the subdivision. The developer became increasingly more difficult to reach and was ed Mr. Swaim ( t was at th sftimefwe learnedlabout thehse ond that the consultant contact sale). Although he was not tion nMrcSwahm d d'tslowlyhbegin s~ubmitting some provide the requested info , paperwork that allowed us to confirm a few qualified sales. One of the issues we havedeunder the program wou d~ Iose1thei qual f capon peor~ to owners who initially qualifi closing. We had some instances where a buyer qualified as a low to moderate income prior to closing, the person got person at the time he initially made application; however, a raise or found a better job. At th ha°house wasnnstan~tly aot Ialq~ual fi desaleadOt er a contract to buy the house, so t situations we encountered invol ~ thbs the bank from whic~h t ey hadhsought mortgage other large item. When they d , funding would no longer make the loan because their debt had increased. These and similar problems were common everywhere. Nationally, this entire program has been a fa'ilure, and the HI ugTexas~and one of th ee loctally (MtntPleasant~and one of many cities througho Mt. Pleasant and Pittsburg Pittsburg), that has been requested to repay funds. Paris, ~ have one major thing in coma~l had cons derable d ff cultg getting Mr. Allgeier to take any in all cities. They, too, have responsibility for the failurelt f if he far~s to meetphe ghantrequh et ent ) nThe on~e thi g r e q u i r e s t h a t h e r e p a y t h e C y they do not have in common WtldiPonallS,tPa s'sesubdiv s on s he only o tne of~the th ee guaranteed program failure. A Y that is fully built-out. One bright side is that the tax base expanded as a result of these new homes. I have been in contact with OR Ve S Affhoudh they're sympathetic, they' enadv sed that Paris to fail the national ob~ec 9 they have no choice but to reqeeuesteld apesponse letter by Feblruary 1pr andlthe City's national objective. They have q consultant, Bob Jones, and I are meeting next Tuesday to develop a response. Although we acknowledge Pae ost of the nfrast uctu e,l nbteatd repayplg atp ol rated the request to repay the ent portion based on the sales that e~ aament ~ Which were 15 of the required 19, resulting in an approximate $83,000.00 r p y But not for the action of the dee sl~phe City wogld ~ ave had at ~least an opport anity to that 5 be sold to qualified b y , comply with the terms of the 9r ociatOesvno longer exis~ts and M rAI geier has opened a Allgeier; however, Housing Ass new company, so we don't know how successful any collection attempts will be. As an additional step, we plan to takus n ate o rams.nFrom what we u~nderstand, plafic pat ng participating in other State ho g p 9 in these programs is essentially what he does for a living. Until we have responded to ORCA, requested appropriate appeals, and metwith agency officials, we don't know exactly W~ te funds n he event thelrepayment demand s made the City Council set aside approp final. . . . _T . .r. _ . T.. . _ . . . . . . _ . . _ , . _ . ~ . . . . . . _ . _ . . . .