The HOME Division of the Urban County Program requests approval to recapture $40,000 from FY 2004 Home Buyer Assistance Program funds to be utilized for Down Payment/Closing Costs Assistance for the South Texas Economic Development Corporation, Inc. (STEDC) a Community Housing Development Organization within the County of Hidalgo.

The Urban County Program HOME Division received a request from STEDC pertaining to the utilization of additional funds in the amount of $40,000, which will allow the agency to make down payment/closing costs assistance available to qualifying low-income families. At this time STEDC must produce a total of eight (8) units as per the FY 2006 contract. Some of the families that STEDC has reviewed for possible qualification have encountered difficulties in acquiring the down payment and/or closing costs necessary to complete the transaction. STEDC is requesting a total of $5,000 per unit in order to alleviate this  gap  in financing. In allowing this amendment, the UCP in conjunction with STEDC will make it possible for these families to become homeowners sooner.

This action will allow for an amendment to the FY 2006 Contract to be increased from $300,000 to $340,000.