| ISSUE |
| The Community Development Department has the option through right of first refusal to re-purchase a home previously built with HOME funds in 2012 located at 832 Woodland Drive. Through the use of HOME funds, the Community Development Department may re-capture the property to maintain its use as an affordable housing project for another buyer. |
| OPTIONS |
Council may:
1. Approve the purchase of the single-family property.
2. Deny the purchase of the single-family property. |
| RECOMMENDATION |
| Staff recommends that the City Council approve the purchase of the property located at 832 Woodland Drive. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the July 11, 2023 Regular Meeting. |
| BACKGROUND |
| The City of Garland is an entitlement community that receives Federal HOME Investment Partnership funding (HOME) through the Department of Housing and Urban Development. HOME funding's sole purpose is to further affordable housing. The Community Development Department seeks to increase the availability of safe and decent housing for low-income families and individuals by providing flexible lending on the sale of acquired single family homes, rehabilitated existing homes and new home construction. HOME allows for the provision of a Right of First Refusal to re-capture previously built homes from the original owners who wish to relocate for the continuation of use as an affordable housing project. |
| CONSIDERATION |
Monthly loan payments and sales of previous HOME projects result in program income generation. It is a HUD requirement that this program income be utilized prior to the annual allocation being spent down. Due to recent project sales and increasing program income, it is necessary that the Community Development Department acquire properties that fall within program parameters for use as feasible projects. The seller has accepted the City's offer of $310,000 on the condition that the City Council approves the re-acquisition of the property. If approved by the City Council, the property will be formally purchased on July 25, 2023. HOME Projects are eligible for in-house financing to a qualified buyer, and allow for necessary repairs and upgrades to be made to the property while offering a mortgage financing structure to allow homeownership to be more affordable for low to moderate income families. This project will meet a national objective as set forth by the Housing and Urban Development Department for the Federal Government.
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