I. RECOMMENDATION:
This item was requested as a Future Agenda Item by Councilman Adkisson and City Manager recommends.
II. BACKGROUND:
III. DISCUSSION:
Draft Program Overview
City of Coalinga Hometown Heroes Program
Pilot Program
Purpose:
In an effort to provide affordable housing opportunities in Coalinga, to preserve the existing neighborhoods in our community, to attract and retain quality Officers to the Coalinga Police Department, and to enhance community safety, the City of Coalinga offers the Hometown Heroes Program.
The Application Process:
The candidate must be ready to buy, meaning they have or will have no problem obtaining primary financing and the primary lender is willing to work with a City program. To be considered for a final loan approval, the applicant must:
- Secure their primary loan;
- Be approved by the City of Coalinga;
- Have found an approved home;
- Be a full-time Police Officer, Police Corporal, or Police Sergeant with the City of Coalinga.
City Assistance:
Up to $15,000 in gap financing for down payment and/or closing costs;
Loan carries a term equivalent to the primary loan (up to a 30-year maximum);
Loan is deferred for the entire term (up to 30 years);
Loan is due and payable at the end of the primary loan term;
Loan is fully forgiven if the employee maintains the home as a primary residence and completes a minimum of five (5) years of service to the City of Coalinga as a full-time Police Officer, Police Corporal or Police Sergeant.
Buyer Requirements:
- Must not currently own any property within the City of Coalinga;
- Must be a full-time Police Officer, Police Corporal, or Police Sergeant with the City of Coalinga;
- Must qualify for primary financing;
- Home being purchased must be a single-family residence located within the City limits of Coalinga;
- Home being purchased may be newly constructed or existing. If existing, must be sound and not in need of rehabilitation;
- Intended purpose must be to owner occupy the home being purchased as a primary residence;
- Home being purchased must comply with local building codes.
IV. ALTERNATIVES:
Do not approve.
V. FISCAL IMPACT:
This item is unbudgeted and would impact the General Fund. The maximum fiscal impact could be $270,000 if all 18 positions participated. However, that is not realistic as some already own homes and some may not be interested in purchasing homes. A realistic fiscal impact would be about $30,000, however, this expense would be a loan and repaid to the City unless the employee completes a minimum of five (5) years of service as indicated above. There may also be a minimal cost associated with administration of the program. | | |