AgdaPkt 2000-08-28 - Laserfiche WebLink

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FIRST TIME HOMEBUYER PROGRAM GUIDELINES These program guidelines reflect the decisions made by the Agency Board in approving this program in June. Your decision in June gave staff the discretion to add policies to these guidelines that emerged from dealings with the regulatory agencies and with actual applicants. Such changes/additions are shown in bold. Program Objectives The purpose of the First Time HomeBuyer (FTHB) program is to increase homeownership opportunities for certain occupations serving the residents of Redwood City, with special focus on City employees and school teachers. The basic objectives for the FTHB is: 1. For targeted populations the FTHB should provide an incentive for the household to stay with the Redwood City School District (RCSD) or City as long as possible. 2. For non-targeted populations the FTHB should assist the household to buy a home but should then provide maximum incentive for them to refinance and pay back the program, so additional loans could be made. 3. The FTHB should assist first time homebuyers.1 Targeting The FTHB program provides priority to teachers and City employees. They will be provided first opportunity to complete the required seminar in home purchase and to make application for a pool of funds approved by the Agency Board. Definition of First Time HomeBuyer City employees presented no definitional problems2. Additionally, a First Time Homebuyer is defined as having no ownership interest, such as fee simple, joint tenancy, tenancy in common, life estate, shareholder in a cooperative, or interest held in trust that would constitute an ownership interest. An applicant cannot have owned a house during the prior three years. The program will target schoolteachers in the following schools serving predominantly Redwood City residents: Adalante, Cloud, Clifford, Ford, Gill, Hawes, Hoover, Kennedy, McKinley, North Star, Taft, Orion, High Selby Lane, Garfield, and Fair Oaks The program is limited to just full time teachers. Substitute teachers and other school employees do not qualify for participation. If a teacher was eligible at the time of application because of their school, and later they move to a non-eligible school, they would not be required to repay the loan. The program assumes the possibility that a teacher might apply for and receive assistance because of their school, then move to another school district. The equity share and principal forgiveness provisions were designed as a disincentive to such a move. 1 The lending agencies define this as someone who has not owned their principal residence for at least three rears. City employees should be on regular status at the time of application.