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7.E. STATE HOUSING INITIATIVES PARTNERSHIP (SHIP FUNDS SET ASIDE DEVELOPER SELECTION COMMITTEE RECOMMENDATION - STRAKA & ASSOCIATES The Board reviewed a Memorandum of December 7, 1999: TO: James E. Chandler County Administrator D I N HEAD CONCURRENCE: Robert M. Keating, AICP Community Development Direct FROM: Sasan Rohani, AICPdG ' Chief, Long -Range Planning DATE: December 7, 1999 SUBJECT: CONSIDERATION OF STATE HOUSING INTTIATIVES PARTNERSHIP (SHIP) FUNDS SET ASIDE DEVELOPER SELECTION COMMITTEE RECOMMENDATION It is requested that the data herein presented be given formal consideration by the Board of County Commissioners at its regular meeting of December 14, 1999. BACKGROUND On September 7, 1999, the Board of County Commissioners agreed to set aside $150,000 of SHIP funds each year for the next three fiscal years for eligible clients of affordable housing developers. These SHIP funds are then to be used by the developer as a match for Home Investment Partnership (HOME) funds. The Board also authorized the Community Development Director to advertise a Request for Proposals (RFP), and appointed a three member selection committee to rank proposals and recommend selection of a developer to the Board for approval. As structured, the HOME program provides down payment and closing cost assistance to eligible persons for purchase of affordable housing. HOME program assistance takes the form of a no interest, non -amortized, second mortgage loan to the homebuyer. That loan does not have to be paid back as long as the borrower continues to reside in the house and occupies it as his principal residence. The remaining cost of the house is financed with a first mortgage loan through sources such as FHA, sub -prime lenders, or others. HOME funds must be used for down payment and closing costs associated with the purchase of single-family, owner occupied affordable housing units by very low and low income households. DECEMBER 14, 1999 -13- BOOK ill FADE