HomeMy WebLinkAboutItem 04 - First Time Homebuyer ProgramITEM a
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER,/�/
MEETING DATE: JUNE 4, 2002
SUBJECT: FIRST TIME HOME BUYER PROGRAM
RECOMMENDATION:
City Council to consider approving a resolution granting approval to Tarrant County
Housing Finance Corporation for the use of the proceeds of its Series 2002 Single Family
Mortgage Revenue Bonds to finance home mortgages for single families homes located
within the City.
BACKGROUND:
The staff recently received information regarding Tarrant County's 2002 first time
homebuyer bond program. The program offers home buyers of moderate income an
opportunity to access below market interest rates, currently estimated at 7%, and provides
three points of down payment and closing costs assistance in the purchase of first homes.
The Tarrant County program provides that cities which have a population in excess of
20,000 are required to pass the resolution in order for the City to participate in the program.
First time homebuyers, whose annual household income does not exceed $61,000 for a
family of two or $70,495 for a family of three, are eligible for the assistance. Homes which
may be financed by the program may not exceed $140,396 for new homes or $95,234 for
existing homes. Participants in the program must meet all normal qualifying conditions for
bank financing.
The purpose of the program is to assist first time homebuyers and to stimulate the housing
market in Tarrant County. There are no costs incurred by the City of Grapevine for
participating in this program, it is funded by the Tarrant County Housing Finance
Corporation
Staff recommends approval.
WAG/cjc
H:AGMTCHomenuyerProgram6-4-02
May 29, 2002 (11:31 AM)
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FIRST SOUTHWEST COMPANY
David K. Medanich
Senior Vire President
April 30, 2002
Bill Gaither
Director of Administrative Services
City of Grapevine
PO Box 95104
Grapevine, Texas 76099
RE: Housing Regulations
Dear Bill,
aIMENE
MAY 6 2002
CITY OF GRAPEVINE
DIRECTOR OF
ADMINISTRATIVE SERVICES
The enclosed resolution allows the City of Grapevine and its first-time homebuyer constituency
to participate in the County's 2002 single-family mortgage revenue bond program. Cities which
have a population of greater than 20,000 in the County are required to pass this resolution to
participate in the program. The program will offer first time homebuyers of moderate income an
opportunity to access a below market interest rate currently estimated at 7.00% with 3 points of
down payment and closing cost assistance.
We would appreciate your help in getting the attached resolution on the City's agenda some time
in May. Upon approval, please mail the resolution back to me or we will make arrangements to
pick it up.
If you could provide the best contact in the City for our housing group to coordinate brochure
distribution and general housing questions, we would be appreciative. Please do not hesitate to
call me at 817-332-9710 if you have any questions or need anything.
Sincerely,
David K. Medanich
Senior Vice President
Enclosure
INVESTMENT BANKERS ,SINCE 1946
777 Main Street • Suite 1200 • Fort Worth, Texas 76102 •817-332-9710 • I-877-999-3792 • Fax 817-336-5572
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, GRANTING APPROVAL TO TARRANT
COUNTY HOUSING FINANCE CORPORATION FOR THE
USE OF THE PROCEEDS OF ITS SERIES 2002 SINGLE
FAMILY MORTGAGE REVENUE BONDS TO FINANCE
HOME MORTGAGES FOR SINGLE FAMILY HOMES
LOCATED WITHIN THE CITY AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, pursuant to the Texas Housing Finance Corporation Act, Chapter 394,
Local Government Code, V.T.C.A. (the "Act"), the creation of the Tarrant County Housing
Finance Corporation (the "Corporation"), was approved by resolution of the City Council
of the City of Grapevine, Tarrant County, Texas (the "City"), adopted on the 14`h day of
April, 1980, to provide a means of financing the cost of residential ownership and
development that will provide decent, safe and sanitary housing for residents of the
County at prices they can afford; and
WHEREAS, in accordance with the Act the Corporation is not permitted to provide
financing of home mortgages for homes which are located within a municipality with more
than 20,000 inhabitants as determined by the Corporation's rules, resolutions relating to
the issuance of bonds, or financing documents relating to such issuance, unless the
governing body of the municipality approves the application of the Act to the property
located within the municipality; and
WHEREAS, the Board of Directors of the Corporation has requested the approval
of the City Council of the City of Grapevine, Texas (the "City") to provide financing for
home mortgages for homes within the City with the proceeds of the issuance of the
Corporation's proposed Series 2002 Single Family Mortgage Revenue Bonds (the
"Bonds").
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That the preambles to this Resolution are hereby adopted in their
entirety and incorporated herein as though set forth in full herein.
Section 2. The City Council of the City hereby approves the application of the Act
to the property within the City and grant its approval to the Corporation for the use of
proceeds of the Bonds to finance home mortgages for single family homes located within
the City.
iia
Section 3. This Resolution shall take effect immediately from and after its adoption.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 4th day of June, 2002.
F.111 Z! Z!
ATTEST:
RES. NO. 2