HomeMy WebLinkAboutOrdinance 11958Ordinance No / ~ 9
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROF?RIATIONS IN
THE GRANTS FUND IN THE AMOUNT OF $240,000 00 FOR THE PURPOSE OF
FUNDING THE REVOLVING LOAN FUND FOR FIRST-LIEN MORTGAGES FOR THE
HOUSING OPPORTUNITY PROGRAM; PROVIDING FOR A SEVERABILITY CLAUSE;
MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL
PRIOR ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING PN EFFECTIVE
DATE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS
SECTION 1
That in addition to those amounts allocated to the various City departments for
the Fiscal Year 1994-95 and in the Budget of the City Manager, there shall also be
increased estimated receipts and appropriations in the Grants P'und in the amount
of $240,000 00 for the purpose of funding the revolving loan fund for first-lien
mortgages for the Housing Opportunity Program
SECTION 2
Should any portion, section or part of a section of this ordinance be declared
invalid, inoperative or void for any reason by a court of competent jurisdiction,
such decision, opinion or judgement shall in no way impair the remaining portions,
sections, or parts of sections of this ordinance, which said remaining provisions
shall be and remain in full force and effect
SECTION 3
That this ordinance shall be cumulative of Ordinance No 11645 and all other
ordinances and appropriations amending the same except in those instances where
the provisions of this ordinance are in direct conflict with such other ordinances
and appropriations, in which instance said conflicting provisions of said prior
ordinances and appropriations are hereby expressly repealed
SECTION 4
This ordinance shall take effect and be in full force and effect and after the
date of its passage, and it is so ordained
APPR,VED AS TO FORM AND LEGALITY
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Adopted
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Effective
City of Fort Worth, Texas ~
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
05/16/95 **C-14816 051WEH 1 of Z
SUBJECT APPROPRIATION ORDINANCE FOR CITY OF FORT WORTH HOUSING OPPORTUNITY
PROGRAM TO MAXIMIZE FIRST-LIEN MORTGAGE FOR EXTENDED PROGRAM
PERIOD
RECOMMENDATION
It ~s recommended that the City Council
Increase the City's maximum first-lien mortgage amount from 515,000 to $25,000 per loan
from the City of Fort Worth Housing Opportunity Program (HOP) Community Development
Block Grant (CDBG) revolving funds through Liberation Community, Inc , (Liberation)
Nehemiah Housing Program
2 Allow the 575,000 in CDBG funds appropriated for the Nehemial-i Program to revolve to
fund up to 5840,000 in first-lien mortgages from the current 5600,000 maximum, for low-
income home buyers. purchasing a home through Liberation
3 Adopt the attached appropriations ordinance increasing estimated receipts and
appropriations in the Grants Fund by 5240,000 00 from increased revenue, and
4 Authorize the City Manager to contract with participating lenders in the Nehemiah Program
to purchase the first-lien mortgages from the City of Fort Worth through September 30,
1995
DISCUSSION
The City of Fort Worth currently provides up to a maximum of 515,000 for afirst-lien mortgage
through our existing HOP and sells the loan to participating lenders for the same amount
Liberation provides, through their Nehemiah Housing Program, a 515,000 non-amortizing zero-
interest, second-lien mortgage which is due upon sale of the -home by the borrower Prior to the
loan closing, a participating lender assists in underwriting the borrower and signs a commitment
letter promising the City that it will buy the first-lien mortgage loan when it closes When the
lender buys the loan from the City of Fort Worth, the HOP loan fund is repaid and the money
revolves for use in funding other first-lien mortgages As of April 1, 1995, sixteen loans have
been closed with first-lien mortgages totaling 5208,300
The most recent loans closed had total mortgages which exceeded 530,000 and needed
additional financing Liberation used their CDBG funds to finance athird-lien mortgage for the
difference Staff recommends increasing the maximum first-lien mortgages to 525,000 This
will allow Liberation to make the necessary repairs and allow the City to originate the first-lien
mortgages capable of covering the higher rehabilitation costs and appraisals
C~ Printed on recycled paper
City of Fort Worth,, Texas
Mayor and Coun~til Communication
DATE REFERENCE NUMBER **C-14816 LOG NAME PAGE
05/16/95 05NEti 2 of 2
svs,rECT APPROPRIATION ORDINANCE FOR CITY OF FORT WORTH HOUSING OPPORTUNITY
PROGRAM TO MAXIMIZE FIRST-LIEN MORTGAGE FOR EXTENDED PROGRAM
PERIOD
Of the four participating lenders, only two have expressed a desire to continue participation in
the Nehemiah Program Neither have an objection to purchasing a higher first-lien mortgage
when supported by their underwriting criteria Liberation, one of the lenders, is committing
5200,000 to buy out the City's first-lien mortgages
All Nehemiah participating lenders' contracts expired with the City of Fort Worth on December
31, 1994 Upon authorization by City Council new contracts will be written to increase the
maximum allowable amount for the first-lien mortgages to 525,000
This recommendation was approved by the Safety and Community Development Committee on
May 4, 1995
This project is located in COUNCIL DISTRICT 5
FISCAL INFORMATION/CERTIFICATION
The Director of Fiscal Services certifies that upon approval and execution of the above
recommendations, the funds required for this agreement will be available in the current operating
budget, as appropriated, in the Grants Fund
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Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
(3)GR76 539120 005206088220 $240,000.00 •
Libby Watson 6140
3
GR76
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(
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1685 005206088000 $240,000.00
Originatin
De
artment Head: CITY C~1N~fL
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Jerome Walker 7537 (from) ~AY ~s 1995
(2)GR76 451685 005206088000 $240,000.00
For Additi
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on (5)GR76 539120 005206088220 $240,000.00
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Contact: e
City Secretary of t
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City of Fort @Vortlt,
Jerome Walker 7537
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