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Home My WebLink About34895 / 88-91 June 2, 1988 # g� RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: ENABLIN6 RESOLUTION/SINGLE FAMILY MORTGAGE LOAN PROGRAM INITIATE� BY: OSHKOSH HOUSING AUTHORITY WHEREAS, the Housing Authority of Winnebago County (the "County Housing Authority" ) is contemplating a single family housing program which would provide financing to lower income families for the purchase or construction of new or existing owner-occupied family residences in Winnebago County or the rehabilita- tion of such residences located in Winnebago County; and WHEREAS, the housing program will not give rise to any risk or general lia- bility to the City of Oshkosh, the County Housing Authority or the County; and WHEREAS, the County Housing Authority would like to make such financing pro- gram available to residents of this Municipality; and WHEREAS, this body would like the County Housing Authority to make such program available to the residents of the Municipality; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that there is a need for the County Housing Authority to exercise its powers within the City of Oshkosh for the purpose of conducting its single family housing program. �-------- — � JL�.�j:li.T'�J �`. � ,. _.-� :i.. L•'�� . � . , .. . ..7 _ 24 _ OSHKOSH HOUSING AUTHORITY � WINNEBAGO COUNTY HOUSING AUTHORITY 600 Merritt Avenue — Oshkash,Wiscansin 54907 EQUAL HOUSING 414/236�5130 or725-6327 OPPORTUNITY Jahn M. Franxen execm��e o�i,eaor To: eill Frueh � FROM: .lohn Fianzen SUBJECT: Single Famil Mortgage Pzogram DATE: May 27, 1988 Evclosed is several pages of material from the R. W. Baird Company explaining the Single Family Home Mortgage Program beingfunded through a tax-exempt bond sale by the Winnebago County Housing Authority. Our involvement in this program was apprwed at the last County Board meeting and we are proceeding as quickly as possible to implement the program so as to makefunds available to the participating lending ivstitutions by mid summer. As paxt of this pzocess the County Housing Authority must seek approval to conduct this program within The City of Oshkosh by an evabling resolution from the council. Therefore, we respectfully ask to be placed on your June 2, 1988, agenda for covsideration of this matter. The necessary resolution will be fonwarded to you under separate cover beFOre dune lst, so you may include it in your packet of ineeting materials. I£ you have any questions, please do not hesitate to call me or xeith xolb of the R. W. Baird Company. A RESOLUTION DECI.IfRING NEED FOR F10USING AUTHORITY OF WINNEBAGO COUNTY TO CONDUCT SINGLE FAMILY HOUSING PROGRAM IN THE MONICIPALITY WHEREAS, the Housing Authority of S9innebago County (the "COUnty Housing Authority" ) is contemplating a single family housing program which would provide financing to lower income families for the purchase or construction of new or existing owner-occupied family residences in Winnebago County or the rehabilitatio❑ of such residences located in Winnebago County; and WHEREAS, the housing program will not give rise to any risk or general liability to the Municipality, the County Housing Authority or the County; and WHEREAS, the Caunty Housing Authority would like to make such financing program available to residents of this Municipality; and WHEREAS, this body woUld like the County HouSing Authority to make such program available to the residents of the Municipality; and NOW, THEREFORE, 6E IT RESOLVED that this body declares there is a need for the County Housing Authority to exercise its powers within the Municipality for the purpose of conducting its single family housing program. Bairci/�;�;.�oM:.: ROdEkiWBAIRD&CO.INCORPOftATE� J]]EASiWISCONYNAVENII[ MILWAVR[E,WI53ID3 aliJ65-]iN WINNEBAGO COUNTY LOCAL HOUSING RUTHORITY SINGLE FRMILY HOUSI� PROGRAM Program Fact Sheet 1. What is the purpose of this Programl To provide 6elow market financing for the purchase or substantial rehabilitation of single family homes. Certain duplexes, three family and four family homes also qualify. 2. What are the special features of this Program? - 30 year fixed rate - 8.50 to 8.75% interest - low FHFl/VN down payment requirements See attached sheet for comparison af this Program to FHR/VN and WHEDN programs. 3. Why are the rates on this program lower than on the WHEDR program? - The interest on local housing authority revenue bonds is ezempt from both Federal and state income tazes when purchased by Wisconsin residents. - The bonds are rated FAA (versus !1A for WHEDII bonds) . 4. What can borrowers use the money for? - Purchase of first home (or first home after 3 years without home ownership). - Refinance existing mortgage for the purpose of substantially � improving hausing. 5. What are income limitations? - Same as WHEDR program. - 115% of inedian family income for area for non-target areas. ($39,330) - 140% of inedian family income for 2/3 of money allocated to target areas. ($47,880) � - No income limit for 1/3 of money allocated to target areas. MfMOER NEW VORM SiIXN EXCNRNLE INC�NOOiMER PRMCIPAL F%CM�NGFS 6. What are purchase price limits? - Same as WHEDA program. - 90% of "average area purchase price" for non-target areas. New Ezistin $65,200 53,100 - 110% of "average area purchase price" for target areas. New Existin $79,700 64�900 7. What costs or risks to the Authority are created by the Program? None. The Program is self-supporting. 8. What are the Benefits of the Program? - Increase availability of affordable housing including related free-up of apartments now occupied by Program participants. � - Encourage desired local economic development. - Increase the number of homes, which expands the local tax base. - No risk or cost to County, Authority or participating municipalities. - All local building and zoning control remains with the municipality. 9. Fbw does the Program work? - - The local housing authority would issue revenue bonds to provide funds to be used to construct, purchase, improve or rehabilitate homes selected by qualified persons participating in the Program. - The Ruthority would have agreements with area mortgage lenders to make mortgage loans availa6le to home buyers. - The payments made on the mortgage loans will be insured by the FHA or guaranteed by the Vu. - The mortgage loans will be converted into GNM.4 securities by the lenders and sold to the bond trustee. The timely payments of principal and interest on the GNMR securities is guaranteed by the Government National Mortgage Rssociation ("GNMA") . - The payments on the GPN1Fl securities, along with other revenues, will make all principal and interest payments on the bonds. Presented by Keith A. Kolb � Vice President 1-800-RW BAIRD or (414) 765-3828 E m r' o +� �.- Q C O C D � d . � N O N N O N � > N M � � U00 y N . . . • i +� C X O J 2 O\ M O� O b N O N I N ,3y � M �M l=iO- N �.Ci �M > N N Y E U N m '4 0 p l �Y V�l H �D C W M �O T N � N j � 2 3 q � p� m �y L N H F •N (V O � � U �n a+ O tA dP "O 3F N w .� N N N t+ N U O O O O O �p O a! �- Z tA C O C O 4- � � �Il O V1 o O �Q O M H �Y dPNEVI Q � Y \ � � Y N MM'1 � U00 � � y Q O � O O N I a� C x O N .N 2 •�• M v� Q H � N N I X li tp 2 ..i dP C N Q O C W li 4- tf� ..i Ifl > f � Q O �. '� O � a � 0 a c� o N � N �p � � E O N w C H C D C O C � N O O� ti O 3 d V� O � H vl MW N NOd2 pt N �/1 �O T h U O O � I ++ C XO �.i C N M N O r N O N � � 'N M � 2 tidP CN ¢ „y � tA li W N •-11H > X O W S H W � H W Q K d' W H W Z (J H Q ti F- YS W W J Z U f G 3 ¢ > a o W W 3 U O ¢ a az x � � H Q J 2 E W � � z � z a z i °z ° a � E fa , * . . . • � .� - ' : ' S £ . Y • • p Y • • .,�� "' � $ � : ' .�. g � � Y • Y Ye � ■ O � Y Y � 2 < Y Y Y i : W � a t � � � .7 E ° . W Y W O M C C w' < O � � 8y ;� � �: '� I ' • . � ■ y +� • .r i i ► � r y ; oa � . e ,. ; � W .;� a � Y � Y 0 = Y � � Y Y iy • 1 y Y - L � ., � b •� \ _ Y Y � �. . ` Y Y ■ � • • � y � Y �l ` .6 • • • • • • • . • • � I � 1 V y Q C C9 q 'J 0 � � J 9 9 G � � � Y C m � . o e � . gcJo ` s: � :� C � .�p+ rY i C C Y � • y • M �'j � tl�Fj "'� rriOM � �CMYGY � �i � WIYY96GrprVM � Mr � � Y C N i y 9 . O� O M � Ci y � N i'1 i N �G w O P , y� C � w I �' • I • o � � � � g � � .", d < � g � . . � • � y• � � C •y tl p �C Y C � C C V � p 1 . . �I�/VfOR CQNMNY 0.0BERiWBAIk�bCO.WCORPOftATED ]IIUSTWISCONSINAVENUE MILWAVKfE,W153i@ GlN65d50] . . . . . . . iiY�� V ��.�.� . r.`r'i2 � i IJ�� Housing quthority of City of Oshkosh �{/� /� � J i� Rttn: Mr. John M. Franzern, Exec. Director •'wt1:{�I:.�ii y'1Jf:uI�Y1] �IITRJriff 600 Merritt Avenue n"'F4`-�'• w�� Oshkosh, Wisconsin 54901 We are pleased to provide you with the enclosed summary of a newly developed local program to increase the supply of affordable single family housing. The ' program does not involve any risk ox cost to the Ruthority and does not require additional staff. � We feel the significantly reduced rates on the mortgages and the ability to tailor the program to best meet local area housing needs should stimulate a significant demand for mortgage loans. Unfortunately, the current � Federal � approval of the tax-exempt revenue bonds which make this prograrn work expires after this year. 7herefore, unless Congress extends the approval, this is the � last year to issue bonds to fund future mortgages under the program. Baird was recently selected by the Fbusing Nuthority for one of the premier .. . . � counties in the state to put together and implement the first local, publicly �� offered program of this kind in Wisconsin. Relatedly Baird has structured and � sold more Wisconsin housing and development bond issues than any other firm. We would appreciate the opportunity to discuss the merits � and/or � � appropriateness of this single family housing program with you. � � Very truly yours, � ROBERT . BpIRD @ C0. INCORPORP.TED � � � ! + �'Z/(�— Keith R. Ko16 � Vice President � 1-B00-RW Baird or � (414) 765-3828 KAK/mt Enclosure < MEMBER NEWYORRSiC[Yf%CXFNLf.INCANDOiNENPqINCIPALE%CXANGE$ Baird/�..�::�: R09EkTWBAIRDBCO.INCO0.PO11AiED ]]]EASiW6CON51NAVENUf MILWAIIREEW1533W . tlL]6535W � . � Single Family Housing Program I. Purpose . � Based � on � �numerous studies of the housing availability �� within � � Wisconsin, there is a deficiency in �the supply of affordable, � saPe � � housing. The Local housing authorities (the "Ruthority") may � establish a program for the purpose of providing financing to qualified private individuals for the construction, purchase, improvement or rehabilitation of single family homes located in their � areas (the "Program"). A number of local authorities may join together to most efficiently implement the program in less populated � areas � � � � . II. � Program Summary � � � P,. The Authorities will issue revenue bonds to provide funds to be . used to construct, purchase, improve or rehabilitate homes � � selected by qualified persons, as defined below, participating � in the Program. Because the interest on the bonds is for the � � �� most part exempt from federal and state income taxes, it is �.� . � � � expected that the interest rate on the mortgage loans (fixed for 30 years) will he well below conventional, Federal Home . Rdministration ("FHH"), Veterans Administration ("VA") or � Wisconsin Housing and Economic Development Nssociation ("WHE�A") . � .. �. � : mortgage� programs. � , . � � � . � . � � � � B. The Authorities will have agreements with area mortgage lenders to make mortgage loans available to home 6uyers. � . C. The payments made on the mortgage loans will be insured by the � FHN or guaranteed by the VA. The same low down payment and � . eligibility requirements of the� standard FHA and VA programs will apply to this program. D. The mortgage loans will be converted into GMM Securities by the lenders and sold to the bond trustee. 7he timely payment of principal and interest on the GPBdR Securities is guaranteed by the Government National Moitgage Association ('�GNMR") . E. The payments on the GW,1R Securities, along with other revenues, will make all principal and interest payments on the bonds. F. The 6onds do not create any indebtedness or liability on the part of the Authorities or any participating municipality. MEMBE0.NEW YO0.R$iCCK IX[NANGE INC ANOOLNER V0.MOPA E%d�NGES III. Program Benefits � R. Increase availability of affordable housing including related � free-up of apartments now occupied by Program participants. , B. Encourage desired local economic development. C. Rbility to tailor program to fit local needs. D. Increase the num6er of homes, which expands the local tax base. E. No risk or cost to County, Authority or participating municipalities. � . F. All local building and zoning contxol remains with the municipality. _ � � . Program Eligibility R. First Time Home Buyer. In most cases, only those who have not owned a home for 3 years will be eligi6le. e. Single Family Residence. It is intended that the Program will �� primarily focus on single family homes. The home must be the � � principal residence of the Mortgagor. There are opportunities � � to include duplexes, three family and four family residences in �. the Program. . � � . C. � � Mortgagor Income �Limit. In most cases the family income of the �. . . � � Program participant �cannot exceed 90% of the median area family income. This income limit will . apply to all Program participants building or buying ezisting residences located in . Non-Targeted Rreas. R Targeted Area is an area in which 70% or � more of the families have an income which is 80% or less �tfian � the State-wide median income. These areas must be designated and approved. For Targeted Fxeas, in most cases the family� income of the Program paTticipant cannot exceed 110% of the median area family income. D. �Purchase Price Limit. There are maximum purchase �price limits � � of each single Pamily residence. The limits vary between . �� municipalities and between new construction and the acquisition � of existing homes. Rdditionally, different limits apply for Targeted and Non-Targeted Areas. There are also different limits for qualifying duplexes, three and four family residences. � � E � a � _ N 1 E � C i O O1 -v O I� �` L � d H v d N O G O W N O OJ Q Q K J O� O� N f Ol C Ol " d yC .-� �O N Z W -. O� O � a .� a .. ce �O i G H �' N G O � O Q 2' WE J £ CJ