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6. Authority to Change First Time Home Buyer ProgramDATE: October 1, 1998 TO: Glen Neier, Interim City Manager FROM: Susan Moyer, Community Development SUBJECT: Propose Changes to the First Time Home Buyer Program Glen, please place this topic on Monday night's City Council Agenda. I have re -prioritized the changes presented to the council at last Monday's workshop. ♦ Staff be allowed to present a proposal to the Board of Realtors asking them to participate in marketing all units. The banks and title companies have reduced their fees or rates as part of a community effort to provide affordable housing to lower income families, and the City would request the realtors to participate in the same way. A sliding scale will be proposed with commissions ranging from 3 to 5% with the highest percentage being applied to qualified applicants in the lowest percentage of median income ranges. The funds utilized to pay commissions would be supplied by the City from any Program Income derived from this and other previous grant programs. Therefore, the net result would be the low and very low income buyers would still be paying the same amounts as previous buyers and in the ranges we know we can qualify them for. ♦ Change the program definition of "family" to include single individuals for all units at Teton Terrace. Federal law defines a single individual as a "family." Thus a single individual with a disability could qualify for the accessible townhouse duplex unit. This change should also expedite completion of the tri- plex units in the event, after extensive marketing, we are unable to achieve sales to single parents or couples. ♦ Allow the full cost of the land for lots in Teton terrace to be included in the zero interest, deferred mortgage held by the Glacier Affordable Housing Foundation when the buyer is in the 55% of median income range and below. This will enable individuals on SSI to qualify easier for a mortgage. ♦ Create a model unit in one of the duplex townhouses as well as in one of the triplex units.