The Community Development Division staff requests a re-allocation of funding from the Affordable Housing fund to the First Time Homebuyer program. If this item is approved, the City would still have $150,000 in HOME affordable housing funds and an additional $81,000 in Community Housing Development Organization funding available to assist developers in creating affordable housing between now and June 30, 2010.

Since July 1, 2009, the City's First Time Homebuyer Program has assisted 31 homebuyers achieve homeownership by expending available HOME and CDBG funding for the program. Additional funding for the program is needed to meet the needs of lower income homebuyers in Billings between now and June 30. There is currently a waiting list of 10 families that have applied to the First Time Homebuyers program. These families are waiting for funds to be available to purchase their first home. Applications continue to arrive daily. New funding for First Time Homebuyer activities will not be available until July 1, 2010, but CDBG and HOME funding from Affordable Housing funds are available immediately to assist these families.

The Community Development Division also has CDBG expenditure HOME commitment deadlines as of May 1 and June 30. Allocating funding not committed for affordable housing projects would assist the Division in meeting these deadlines.
The City’s Citizen Participation Plan requires a public hearing and City Council action on amendments in excess of $25,000.

The Council must hold a public hearing and then may:

• Reallocate $150,000 in CDBG funds to the City’s First Time Homebuyers Program to provide the resources to meet the current needs and expend the funds in a timely manner or;
• Continue to reserve the CDBG and HOME funds for the Affordable Housing Development fund and possibly not meet federal expenditure and commitment deadlines.

The recommendation would result in the utilization of existing funds already allocated to the Affordable Housing Development Fund for First Time Homebuyers. If the request to move funding into the First Time Homebuyer program is approved, the City would still have $231,000 in affordable housing funds available to assist developers in creating affordable housing opportunities between now and June 30, 2010, when new funding becomes available. Additional funding may also be allocated on July 1, 2010, for FY2010-2011 for affordable housing projects

Staff and Community Development Board recommend City Council hold a public hearing and support the recommendation to reallocate $150,000 in CDBG Affordable Housing Support funds to the City’s First Time Homebuyers Program