Res 1990-071 - Laserfiche WebLink

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Applicant selection will be based on: 1) Income Eligibility 2) Financial Ability to Repay the Loan 3) Credit/Debt Payment History 4) Priority Consideration for Current and/or Former Residents of' Victory Gardens and Dunbar The f'irst applicants who meet the selection criteria and submit complete application packages will be selected to purchase the available homes. The City of' San Marcos will be responsible f'or the General Administration of' this grant and monitoring the perf'ormance of' the non prof'it organization. The mortgage loan will be based on the cost of' construction and the appraised value of' the lot. All payments will be considered program income and will be placed in a revolving f'und managed by the City of' San Marcos f'or future development of' additional af'f'ordable homes with the approval of TDoC. As the amount of' program income collections reach the amount required to build additional homes, the City of' San Marcos will select other available lots for this program and request permission f'rom TDoC to transf'er additional f'unding to the non prof'it to build additional homea. The City~s goal is to provide new housing in these neighborhoods f'or as long as there is a need and available, af'f'ordable lots for development. If' a home acquired ~hough this program is sold, the balance on the note will be due and payable unless the note is assumed by, or the house is sold to, another low- moderate income household. To secure the interest of' the City and the State, a lien in the amount of the note will be placed on each home. MORTGAGE EXAMPLE: LOT COST $10,000 CONSTRUCTION COST 6Q.LQQQ SALES PRICE $30,000 $30,000 ~ 6% for 30 years = $230/mo (PITI> $230 X 121'10 X 10 HOMES = $27,600/Year (PROGRAM INCOME)