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Boa 94 mw. 2,98 To receive loan assistance from the Local Housing Assistance Program, applicants must be in either the very low income category, the low income category, or the lower half of the moderate income category. In most cases, the county provides downpayment/closing cost loans, rehabilitation loans, or impact fee loans directly to the eligible applicant purchasing a home or rehabilitating a home. The county then becomes the first or second mortgage holder. At the time of closing, applicants sign a county mortgage document and promissory note. The applicant is then responsible for paying back the loan and accrued interest when the assisted housing unit is sold. In some cases, however, a non-profit organization such as Habitat for Humanity may be an eligible sponsor. An eligible sponsor receives a loan from the county's local housing assistance program for impact fees or land acquisition. To receive the loan, the non- profit organization must sign the county's mortgage document and promissory note. Upon receiving a loan, the non-profit organization then has one year to build the home and transfer it to an eligible very low income or low income household. ANALYSIS AND ALTERNATIVES In all cases, a non-profit organization which receives SHIP funds will transfer ownership of the SHIP assisted house to an eligible applicant. The new owner must then assume all applicable loans, including the county's deferred SHIP loan. Presently, the Board of County Commissioners must approve each mortgage assignment and loan assumption agreement. An alternative to this process is for the Board to assign a designee to review and approve assignment and assumption agreements. Since the community development department administers the county's SHIP program, a logical designee would be the community development director or his designee. By allowing staff to approve assignment and assumption agreements, the SHIP program can function more efficiently. This change would save time, staff effort, and paperwork. Because approval of these agreements is primarily a legal and administrative function, this change would not affect the Board's substantive policy decision- making responsibility. Community development department staff have coordinated with the county attorney's office on this matter. Both offices recommend that the Board delegate to staff the authority to review and approve SHIP program assignment and assumption agreements. Recommendation Staff recommends that the Board of County Commissioners approve the attached resolution, authorizing the Community Development Director or his designee to review and approve local housing assistance program mortgage assignment and loan assumption agreements. FEBRUARY 7, 1995 80