Title
Acquisition, Rehabilitation, and Resale Fund for Homeownership Contract
Action
Action:
A. Approve a contract in the amount of $1,200,000 with Habitat for Humanity of the Charlotte Region to support the production and sale of affordable homeownership units under the Acquisition, Rehabilitation, and Resale Fund for a term of one year, and
B. Authorize the City Manager to renew the contract for up to one, one-year term and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
Rebecca Hefner, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
* The Acquisition, Rehabilitation, and Resale Revolving Loan Fund Program (ARR) was established to expand affordable homeownership opportunities and revitalize neighborhoods by leveraging partnerships with non-profit organizations to acquire vacant or rental single-family homes, perform needed renovations, and resell the homes to income-eligible buyers.
* In August 2024, the city released a rolling application for ARR loan pool membership seeking non-profit organizations experienced in housing development and rehabilitation. Approved loan pool members are eligible to participate in the program and request funds.
* Habitat for Humanity of the Charlotte Region (Habitat) was approved as a qualified pool member in November 2024.
* Habitat will use the $1,200,000 to produce 15 affordable single-family homes through acquisition, rehabilitation, and resale.
* ARR guidelines include:
* Unit acquisition will be targeted to the Corridors of Opportunity;
* Average per-unit city subsidy up to $80,000, with the possibility for additional down payment layering to ensure affordability (for example, through the city's House Charlotte program);
* Homes will be sold to buyers earning 80% of Area Median Income or below (currently $84,800 for a family of four);
* Eligible buyers must secure first mortgage financing and meet income re...
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