2010/08/25 Council Agenda Packet

ATTACHMENT A -- STATEMENT OF WORK AND BUDGET Contractor: City of Everett O) Contract No. 08-F6401-004 Section C: Work Activities, Expectations and Budget Budget Category Project Activities Schedule Budget Amount 01 - Acquisition • City of Everett will use its NSP funds to acquire and rehabilitate approximately four (4) 2/18/09 to $525,000 foreclosed properties in order to sell or rent them to income-eligible buyers or tenants. 3/19/2013 (Type B NSP Eligible Use Activity). or sooner • Any purchase of a foreclosed upon home or residential property must be at a discount from the current, market appraised value of the home or property. Each foreclosed-upon home or residential property must be purchased at a discount of at least one percent (1%) from the current market-appraised value of the home or property. • Within 60 days prior to an offer on the property, an appraisal must be conducted that conforms to the requirements of URA at 49 CFR 29.103, "Criteria for Appraisals". • Each NSP-assisted homebuyer must receive and complete at least eight (8) hours of homebuyer counseling from a HUD-approved housing counseling agency before obtaining a mortgage and/or real estate loan. • City of Everett must ensure that the homebuyer obtains a mortgage or loan from a lender who agrees to comply with the bank regulators' guidance for non-traditional mortgages. • If the abandoned or foreclosed home or residential property is sold to an individual as a primary residence, then such sale must be in an amount equal to or less than the cost to acquire, redevelop and/or rehabilitate such home or property as necessary to meet minimum housing quality standards • Redevelopment and/or rehabilitation activities may include improvements to increase the energy efficiency or conservation of such homes or property or provide a renewable energy source for such homes or property. • Any redevelopment of foreclosed, abandoned or vacant property must meet applicable laws, codes and other requirements relating to housing safety, quality and habitability. • Down-payment assistance may only be used to finance the acquisition by low, moderate or middle income households of housing that they will occupy. • Down-payment assistance may be used to pay reasonable closing costs that may be associated with the purchase of the property. In no event should NSP funds be used to pay for closing costs that exceed more than three percent (3%) of the property's gross purchase price. 2