HomeMy WebLinkAbout5. NEW BUSINESS 4/3/07
Mount Prospect
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Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
FROM:
VILLAGE ENGINEER
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TO:
VILLAGE MANAGER MICHAEL E. JANONIS
DATE: MARCH 28, 2007
SUBJECT: FLOODPLAIN ORDINANCE MODIFICATIONS
The Floodplain Ordinance modifications, as presented at the March 27th Committee of
the Whole Meeting, will be brought to the Village Board for approval at the April 3rd
Board Meeting. At the March 27th Committee of the Whole Meeting it was discussed
whether the effective dates of the Flood Insurance Rate Maps should be removed from
the text of Chapter 22 of the Village Ordinances and placed in the Appendix. I have
discussed this with Village Attorney George Wagner and Public Works Director Glen
Andler. It is our recommendation that the effective dates stay within the text of the
code for the following reasons:
. The code is much more functional and user friendly if the date is located in the
text along with the other parts of the code. Otherwise, the user will need to look
in two locations of the code in order to gather the necessary information.
. The information in the Appendix is related only to dollar amounts for such items as
fees, rates, fines, bonds and penalties.
. Although the map effective dates will need to be changed now and within the next
year, I do not anticipate this to be required on a regular basis. This is only the
third time that the maps dates will be changed in the past 20 years. Since the
entire Cook County is being remapped next year, I do not anticipate there will be
a need to revise the map effective dates for quite some time.
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Cc: Glen R. Andler, Public Works Director
H: Engineering\Drainage\Ordinance\Chapter 22\2007Modifications\AppendixMm
Mount Prospect
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Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO:
VILLAGE MANAGER MICHAEL E. JANONIS
FROM:
VILLAGE ENGINEER
DATE:
MARCH 29, 2007
FLOODPLAIN ORDINANCE MODIFICATIONS
SUBJECT:
BACKGROUND
The National Flood Insurance Program (NFIP) requires that communities enact and
enforce Floodplain Regulations in order to be eligible to participate in and receive the
benefits of the NFIP. Mount Prospect accomplished this in 1977 by adopting Chapter
22 of the Village Ordinances entitled Floodplain Regulations. Periodically these
regulations require modifications for various reasons. Ordinance amendments were
approved by the Village in 1987, 1992 and most recently in 2000 when new Flood
Insurance Rate Maps (FIRM) were prepared by the Federal Emergency Management
Agency (FEMA). These regulations specify that the regulated floodplain areas are
those depicted on the FIRM maps. Because of the size of the maps, the FIRM maps for
Cook County cannot be shown on one continuous map, but are shown on numerous
panels. Portions of Mount Prospect are located on 11 of the Cook County panels. To
avoid confusion when maps are modified, FEMA requires that our code reference the
effective date of the most current map.
CURRENT REQUIRED MODIFICATIONS DUE TO MAP CHANGES
Recently changes were made to the floodplain delineation for the Wheeling Drainage
Ditch on the appropriate FIRM panels. These changes do not affect the status of any
property within Mount Prospect. However, since two of the map panels do include
portions of the Village of Mount Prospect, I recommend that we revise Chapter 22 of
the Vi Ilage Code to adopt the new maps and reflect the new effective date of Apri I
16, 2007 for the two map panels. Please place this on the agenda for the April 2nd
Village Board Meeting. Since this needs to be accomplished prior to the effective
date of the maps which is April 16, 2007, I recommend that the second reading be
waived so that this item can be approved prior to the effective date of April 16th.
Attached is marked up copies of the code with the revisions.
FUTURE MODIFICATIONS DUE TO MAP CHANGES
FEMA and the Illinois Department of Natural Resources (IDNR) are in the process of
updating the FIRM maps for all of Cook County. The revised maps will more
Page 2 ...
Floodplain Ordinance Modifications
March 29, 2007
accurately depict the floodplain areas for all communities including Mount Prospect.
New flood studies have been performed and the maps have been overlaid onto aerial
maps and have been improved using better contour maps to more accurately
delineate the floodplain areas. The preliminary maps were received by the Village
two weeks ago. FEMA and IDNR will hold open houses for local government officials
and for the public at large to view and comment on the maps. Similar to the process
prior to adoption of the FIRM for the Des Plaines River in 2000, there will be a period
of review and appeal for communities to provide input into the process. After all
comments and appeals are resolved, the maps will be effective. While it is difficult
at this point to determine how long it will take to resolve all appeals, it is anticipated
that the maps will become effective within the next year. Prior to their effective
date, it will be necessary for the Village to again modify the Floodplain Regulations to
adopt the new date of the maps. Village staff will review the maps and the studies
and prepare a response during the comment period.
FUTURE MODIFICATIONS DUE TO FEMA / IDNR RECOMMENDATIONS
Since mandatory changes to our Floodplain Regulations will be required because of
the new mapping, we have taken this opportunity to review our entire floodplain code
with IDNR and additional modifications to the Floodplain Ordinance are
recommended. The changes include housekeeping items such as updating the code to
reflect name changes of certain agencies, new definitions and revisions to existing
definitions and improvements to the code that have resolved issues that have
surfaced enforcing the current code. I anticipate that these changes will be brought
to the Board for approval at the same time as the Cook County map changes.
I will be available at the April 3rd Village Board meeting to answers any questions.
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Cc: Glen R. Andler, Public Works Director
H: Engineering\Drainage\Ordinance\Chapter22\2007Modifications\RecMm
CURRENT REQUIRED FLOODPLAIN REGULATION MODIFICATIONS
22.102: DEFINITIONS:
FLOODPLAIN: That land typically adjacent to a body of water with ground surface
elevations at or below the base flood or the 100-year frequency flood elevation.
Floodplains may also include detached special flood hazard areas, ponding areas, etc.
The floodplain is also known as the SFHA. The floodplains are those lands within the
jurisdiction of the village that are subject to inundation by the base flood or 100-year
frequency flood. The SFHAs of the village are generally identified as such on the FIRM
of the village prepared by the federal emergency management agency (or the U.S.
department of housing and urban development) and dated ~lovember 6, 2000. The
SFHAs of the village are generally identified as such for the Des Plaines River on the
countywide Flood Insurance Rate Map of Cook County_prepared by FEMA on Map Number
170129 C panel 0207G dated April 16, 2007 and panel 0209F dated November 6, 2000.
The SFHAs of the Village are also generally identified as such for Feehanville Ditch,
Higgins Creek, McDonald Creek, McDonald Creek Tributary B and Weller Creek on the
Cook County Flood Insurance Rate Map prepared by FEMA on Map Number 170129 C
panel(s) 0202F, 0204F, 020BF, 0209F, 0211F, 0212F, 0214F and 0216F dated November 6,
2000. The SFHAs of those parts of unincorporated Cook County that are within the
extraterritorial jurisdiction of the village or that may be annexed into the village are
generally identified as such on panel number 0209F, 0212F and 0214F the countywide
flood insurance rate map prepared for Cook County by as FEMA federal emergency
management agency (or the U.S. department of housing and urban development) and
dated November 6, 2000.
REGULATORY FLOODWAY: The channel, including on stream lakes and that portion of
the floodplain adjacent to a stream or watercourse, as designated by IDNR/OWR,
which is needed to store and convey the existing and anticipated future 100-year
frequency flood discharge with no more than a one-tenth foot (0.1 ') increase in stage
due to the loss of flood conveyance or storage, and no more than a ten percent (10%)
increase in velocity. Regulatory floodways are designated on the FIRM prepared by
FEMA and dated November 6, 2000. The floodways are designated for the Des Plaines
River on the countywide Flood Insurance Rate Map of Cook County_prepared by FEMA on
Map Number 170129 C panel 0207G dated April 16, 2007. The floodways are designated
for Feehanville Ditch, McDonald Creek, McDonald Creek Tributary B and Weller Creek
on the Cook County Flood Insurance Rate Map prepared by FEMA on Map Number 170129
C panel(s) 020BF, 0209F, 0212F and 0216F dated November 6, 2000. When two floodway
maps exist for a waterway, the more restrictive floodway limit shall prevail. To locate
the regulatory floodway boundary on any site, the regulatory floodway boundary
should be scaled off the regulatory floodway map and located on the site plan using
reference points common to both maps. Where interpretation is needed to determine
the exact location of the regulatory floodway boundary, IDNR/OWR should be
contacted for any interpretation.
22.105: BASE FLOOD ELEVATION:
A. The base flood or 100-year frequency flood elevation for the SFHAs of Des Plaines
River and Weller, Higgins, McDonald Creeks, McDonald Creek Tributary Band
Feehanville Ditch shall be as delineated on the 100-year flood profiles in the flood
insurance study of the village prepared by FEMA and dated April 16, 2007 or
November 6, 2000 February 2, 1982, and such amendments to such study and maps
as may be prepared from time to time.
B. The base flood or 1 OO-year frequency flood elevation for the SFHAs of those parts of
unincorporated Cook County that are within the extraterritorial jurisdiction of the
village or that may be annexed into the village shall be as delineated on the 100-
year flood profiles in the flood insurance study of Cook County prepared by FEMA
and dated April 16, 2007 or November 6, 2000, December '1, 198'1, and such
amendments or revisions to such study and maps as may be prepared from time to
time.
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 22 ENTITLED
"FLOODPLAIN REGULATIONS"
OF THE VILLAGE CODE OF MOUNT PROSPECT
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR
HOME RULE POWERS:
SECTION ONE: That Section 22.102, "Definitions" of Chapter 22 of the Village Code of Mount
Prospect, as amended, is hereby further by deleting the definitions of "Floodplain" and
"Regulatory Floodway" in their entirety and inserting new definitions of "Floodplain" and
"Regulatory Floodway," which shall be and read as follows:
"FLOODPLAIN": That land typically adjacent to a body of water with ground surface elevations
at or below the base flood or the 100-year frequency flood elevation. Floodplains may also
include detached special flood hazard areas, ponding areas, etc. The floodplain is also known
as the SFHA. The floodplains are those lands within the jurisdiction of the Village that are
subject to inundation by the base flood or 100-year frequency flood. The SFHAs of the Village
are generally identified as such for the Des Plaines River on the countywide Flood Insurance
Rate Map of Cook County prepared by FEMA on Map Number 170129 C panel 0207G date
April 16, 2007 and panel 0209F dated November 6, 2000. The SFHAs of the Village are also
generally identified as such for Feehanville Ditch, Higgins Creek, McDonald Creek, McDonald
Creek Tributary B and Weller Creek on the Cook County Flood Insurance Rate Map prepared
by FEMA on Map Number 170129 C panel(s) 0202F, 0204F, 0208F, 0209F, 0211F, 0212F,
0214F and 0216F dated November 6,2000. The SFHAs of those parts of unincorporated Cook
County that are within the extraterritorial jurisdiction of the Village or that may be annexed into
the Village are generally identified as such on panel number 0209F, 0212F and 0214F the
countywide Flood Insurance Rate Map prepared for Cook County by FEMA and dated
November 6, 2000.
"REGULATORY FLOODWA Y": The channel, including on stream lakes and that portion of the
floodplain adjacent to a stream or watercourse, as designated by IDNR/OWR, which is needed
to store and convey the existing and anticipated future 100-year frequency flood discharge with
no more than a one-tenth foot (0.1') increase in stage due to the loss of flood conveyance or
storage, and no more than a ten per cent (10%) increase in velocity. The f100dways are
designated for the Des Plaines River on the countywide Flood Insurance Rate Map of Cook
County prepared by FEMA on Map Number 170129C panel 0207G dated April 16, 2007. The
f100dways are designated for Feehanville Ditch, McDonald Creek, McDonald Creek Tributary B
and Weller Creek on the Cook County Flood Insurance Rate Map prepared by FEMA on Map
Number 17129 C panel(s) 0208F, 0209F, 0212F and 0216F dated November 6, 2000. When
two f100dway maps exist for a waterway, the more restrictive f100dway limit shall prevail. To
locate the regulatory f100dway boundary on any site, the regulatory floodway boundary should
be scaled off the regulatory floodway map and located on the site plan using reference points
common to both maps. Where interpretation is needed to determine the exact location of the
regulatory floodway boundary, IDNRlOWR should be contacted for any interpretation.
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Amend Chapter 22
Page 2 of2
SECTION TWO: That Section 22.105, "Base Flood Elevation" of Chapter 22 of the Village
Code of Mount Prospect as amended shall be further amended by deleting items A. and B. in
their entirety and inserting new items A. and B., which shall be and read as follows:
A. The base flood or 100-year frequency flood elevation for the SFHAs of Des Plaines River
and Weller Creek, McDonald Creek, McDonald Creek Tributary Band Feehanville Ditch shall
be as delineated on the 1 OO-year flood profiles in the flood insurance study of the Village
prepared by FEMA and dated April 16, 2007 or November 6, 2000 and such amendments
to such study and maps as may be prepared from time to time.
B. The base flood or 100-year frequency flood elevation for the SFHAs of those parts of
unincorporated Cook County that are within the extraterritorial jurisdiction of the Village that
may be annexed into the Village shall be as delineated on the 100-year flood profiles in the
flood insurance study of Cook County prepared by FEMA and dated April 16, 2007 or
November 6, 2000, and such amendments or revisions to such study and maps as may be
prepared from time to time.
SECTION THREE: That this Ordinance shall be in full force and effect from and after its
passage, approval and publication in pamphlet form in the manner provided by law.
AYES:
NAYS:
PASSED and APPROVED this day of April 2007.
Irvana K. Wilks
Mayor
ATTEST:
M. Lisa Angell
Village Clerk
H:\CLKO\files\WIN\ORDINANC\CHAPTER22f1oodplainregulationsapri12007.DOC
2
MICHAEL E. JANONIS, VillAGE MANAGER
COMMUNITY DEVELOPMENT DIRECTOR
MARCH 28, 2007
IHDA HOME GRANT ACCEPTANCE &
PROPOSED CHANGES TO FIRST TIME BUYERS PROGRAM
Village of Mount Prospect
Community Development Department
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mount Prospect
The Village of Mount Prospect has been awarded a $42,000 grant in HOME funds from e Illinois
Housing Development Authority (IHDA) to assist at least 4 first time homebuyers to purchase homes in
the Village. The grant is part of the Village's effort to obtain additional funding to meet the housing
demands of the community despite the decreasing federal assistance provided through the Community
Development Block Grant (CDBG) program.
The Village currently funds a First Time Homebuyer Program with CDBG funds. In 2000, the First Time
Homebuyers Program was authorized under Resolution 30-00. Since then, the Village has assisted
seven homebuyers purchase homes within the Village. All seven of these projects are in good standing
and none of the properties have been sold within five years, which would require repayment.
HOME funds are designed to:
· Expand the supply of decent and affordable housing for people earning 50% to 80% of the area
median income.
· Strengthen the ability of local governments to design and implement local affordable housing
strategies.
· Extend and strengthen partnerships among all levels of government, private, and non-profit
organizations in the production and operation of affordable housing.
IHDA has established program requirements that are more restrictive than our current 151 Time
Homebuyer Program requirements. Staff recommends that the Village amend our current program
guidelines to mirror IHDA's requirements so that we maintain consistent guidelines for both 151 Time
Homebuyer Programs. The following are the proposed changes to the current First Time Homebuyer
Program:
· Maximum Acquisition Assistance: The Village's current program does not have a maximum for the
amount that a homebuyer chooses to use toward a down payment. To comply with HOME
requirements, staff is proposing that the sum of the homebuyer's contribution plus HOME funds
does not exceed 20% of the home's purchase price. IHDA argues that the down payment
assistance should be based on need: a homeowner exceeding a down payment of 20% does not
indicate need through the HOME program.
· Elimination of Matching Requirement: Lenders typically require that a household have three times
its monthly expenses in savings should an emergency arise. The Village's current program
f'\) _ r
H:\Pl,AN\Cl)13Ci\HOMr: HR.11lCII10 FTH I1r1WT:lI,.. "h;""p,',,- d,H'
Proposed Changes to the First Time Homebuyers Program
March 28, 2007
Page 2
requires that homebuyers match the Village's contribution to the down payment. Staff is proposing
the elimination of the matching requirement because it may not be the best time for a household to
deplete their savings in case an emergency repair is necessary.
· Post - Purchase Counseling: Currently, the Village requires that all homebuyers attend a home
buying seminar prior to purchasing a home. HOME requires that all homebuyers receiving
assistance have both pre- and post-purchase counseling. The purpose of the pre-purchase
counseling is to assist homebuyers with their financial health before the home purchase. The post-
purchase counseling is to educate new homebuyers about home maintenance and to provide
information about how to avoid foreclosure.
· Debt to Income Ratios: The current program does not have any requirements for income ratios.
IHDA requires that lenders adhere to front end (33%) and back end (38%) ratios when utilizing
HOME funds to ensure sufficient funds remain to cover living expenses. Theses ratios state that
monthly housing debt (including payment of mortgage, taxes, insurance, and condominium
assessments) should not exceed 33% of gross monthly household income and/or total monthly
household debt should not exceed 38%. It is the responsibility of this program not to create a
housing burden for low- and moderate-income homebuyers. The ratios ensure that home buyers will
be able to reasonably pay their housing expenses.
· Background Checks: Under the current program, background checks are not performed. IHDA
acknowledges the importance of safe, affordable housing. Therefore, persons with previous criminal
records for drug trafficking, sex offenders, and other violent crimes against people may not be
assisted using federal funds. Applicants must allow the Village to conduct a background check.
· Income verification: The current program utilizing CDBG funds verifies income with Federal Income
Tax Returns. IHDA requires that a third party must verify income for any applicant assisted through
the HOME program. The income is documented for six months. If the homebuyer does not
purchase the home within the 6-month timeframe, the income must be re-verified.
· Maximum Purchase Price: The Village's existing program does not have a maximum purchase
price. Under the current program, the average purchase price is approximately $160,000.
Properties may not exceed HUD's Maximum Appraised Values in the area when acquiring
properties with HOME funds. The maximum appraised value for an eligible property within Cook
County is $275,200. The maximum. purchase price has not been an issue for the Village's program
in the past, but staff proposes to adopt all of the IHDA's HOME program requirements.
The following is a summary of other First Time Homebuyers programs from other jurisdictions:
Jurisdiction Funding Source Maximum Counseling Homebuyer's
Assistance Requirement Minimum
Contribution
Arlington Heights HOME $14,999 Pre & Post- $1,000
purchase
Cook County ADD! $10,000 Pre -ourchase $1,000
Mount Prospect CDBG & HOME $10,000 Pre & Post- $1,000
purchase
Schaumbura CDBG $10,000 Pre-purchase $1,000
H :\PLAN\CDIK.i'HOVlI: II B\J1lelTlo 1"113 program changes.doc
Proposed Changes to the First Time Homebuyers Program
March 28, 2007
Page 3
Staff is requesting that the Village Board approve two resolutions that would accept the $42,000 grant
from IHDA and modify our current 1st Time Homebuyer Program guidelines to mirror IHDA's program
guidelines. Please forward this memorandum and attachments to the Village Board for their review and
consideration at their April 3rd meeting. Staff will be present to answer any questions related to these
matters.
Attachments: Program Summary
Resolutions (2)
11:\PLAN\CDBG\H()rV1E HB\mclTlo FIB program ch.mgcs.doc
VILLAGE OF MOUNT PROSPECT
First Time Homebuyers Assistance Program
2007 Guidelines
Village of Mount Prospect
Proposed Changes to First Time Homebuyers Program
Purpose
During the development of the 2005-2009 Consolidated Plan, the Village of Mount Prospect
determined that the homeownership within the Village is difficult for low- and moderate-
income households. The biggest constraints for a prospective buyer are the initial down
payments and financing of the purchase. The First Time Homebuyers Program (FTB) is a tool to
encourage low- and moderate-income residents purchase a home and build equity.
Program Description
The Village of Mount Prospect's First Time Homebuyer Assistance Program provides
opportunities for low- and moderate-income households to purchase their first homes.
Through this program, applicants obtain private first mortgages from banks/brokers and
receive assistance from the Village with down payments and closing costs. The program was
developed by the Village's Planning Division and is made possible by the Department of
Housing and Urban Development's Community Development Block Grant and the Illinois
Housing Development Authority's HOME funds.
Funding
· $42,000 in IHDA HOME funds is available over the next two years.
· A maximum of $10,000 will be allocated for each homebuyer project for down payment,
closing cost, and project delivery.
Applicant Eligibility
.
Applicants must be first time homebuyers (not having owned a home in the past three
years). Exceptions may be made for displaced homemakers.
Applicants' household incomes must not exceed specific year HUD income limits.
Applicants must occupy the property as their principal residence
.
.
Property Eligibility
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Properties purchased must be within the corporate limits of the Village of Mount Prospect.
Eligible properties are limited to single-family residences. This includes detached homes,
condominiums, townhouses, coach houses and duplexes (with split ownership).
Properties must pass a home inspection at the homebuyer's expense.
Properties must pass a Village inspection and lead inspection prior to purchase (both are
covered by the Village).
Ownership shall be by fee simple title only
The property to be purchased must have a clear and free title.
Refinance transactions do not qualify for this program.
The maximum appraised value for properties is $275,200.
The down payment from all sources, including the Village's assistance, must not exceed 20%
of the purchase price.
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1
Village of Mount Prospect
Proposed Changes to First Time Homebuyers Program
Counseling
Pre-purchase counseling allows the prospective homebuyers to better understand the home
buying process and alleviate many of the fears typically associated with loan closing or
settlement. Participants must successfully complete a homebuyer counseling and training
course offered by the Northwest Housing Partnership prior to making an offer to purchase. The
counseling sessions include the following topics:
.
Selecting a home (a Realtor will be used in the home selection process).
Understanding the buying and rehabilitation process, including loan closing.
Financial costs of home ownership.
Budgeting personal finances.
Home maintenance and repairs.
How to avoid predatory lending institutions and practices.
.
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Post-purchase counseling is also required approximately 6 months after the closing. The post-
purchase counseling will include:
.
How to avoid foreclosure
Preventative home maintenance tips
.
A Certificate of Completion is required BEFORE an offer is made on a property.
Terms of Assistance
.
Applicants must provide a minimum of $1,000 for down payment costs.
Applicants are referred by the Village to lending institutions with commitments to the FTB
program.
.
The amount of the down payment/ closing costs assistance loan will be based on the applicant's
income and the home purchase price and is to be determined by the Village in consultation with
the lender. Homebuyers must contribute a minimum down payment of $1,000 and the
maximum loan will be the amount necessary to bridge the gap between the buyer's resources
and the funds needed to secure the private mortgage. The maximum amount for assistance will
be limited to $10,000 for down payment, closing cost and project delivery costs.
The down payment/ closing cost assistance loan provided by the Village will be secured by a
second mortgage recorded against the title to the property. The loan will be a 0% interest,
deferred loan. The loan will be deferred for the affordability period of five years and will be
forgiven at a rate of 1/60th per month over the five-year period. Recapture will be ensured by
the execution and recording of a second mortgage stipulating the recapture requirement.
Role of Village
.
Administer and oversee the First Time Homebuyer's Assistance program.
Provide a maximum of $10,000 in assistance: down payment, closing costs, and project
delivery costs.
.
2
Village of Mount Prospect
Proposed Changes to First Time Homebuyers Program
.
Subordinate its lien position (in the form of a second mortgage) to the lender's first
mortgage.
Village loans are provided with 0% interest.
The loans are forgiven in full after five years. The loans are forgiven at a rate of 1/60th of the
original principal balance at the end of each full month of occupancy of the residence by the
homebuyer.
The Village maintains records for each home purchase for review by HUD and IHDA as
required by federal regulations.
The Village must verify income from a third party source. Should the homebuyer be
accepted in the program and not purchase a home for more than 6 months, the income must
be re-verified.
Perform a background check on all applicants.
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Role of Lending Institution
The lender will provide pre-purchase homebuyer counseling and assist the Village in marketing
the program. The lender will provide a thirty-year fixed rate mortgage with no minimum
mortgage amount. The lender will allow expanded underwriting ratios of 33/38 total monthly
housing debt (including payment of mortgage, taxes, insurance, and condominium
assessments) should not exceed 33% of gross monthly household income and total monthly
household debt should not exceed 38 %. The lender will also waive a portion of the closing costs
as described in commitment letters. The Village will pre-select applicants based on their pre-
application and then send application form to the lender to determine eligibility.
Lenders in the program will provide the following:
.
Provide mortgage loans that are 30-year fixed rate loans. Buyers will be required to provide
down payments of at least $1,000 of the purchase prices from their own funds.
Set no minimum loan amount for this program.
Allow underwriting rations of 33/38 total monthly housing debt
Work with persons with nontraditional credit histories.
Furnish the Village, at each closing, a final report including the amount of the first
mortgage, an itemization of the amount of the bank's contribution to the purchase, and
other loan application and documents requested by the Village.
Assist the Village in marketing the program.
To manage the collection of its own loans.
In the event the loan recipient defaults on the mortgage, the Bank agrees that the Village
will not be responsible for recovering the funds or for repaying that portion of the mortgage
extended by the lender.
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H:\PLAN\CDBG\HOME HB\Program Summary.doc
3
Exhibit A
Resolution No.
A RESOLUTION AMENDING RESOLUTION NO. 30-00 SUPPORTING THE CREATION OF THE FIRST
TIME HOMEBUYERS ASSISTANCE PROGRAM
WHEREAS, the corporate authorities of the Village of Mount Prospect determined that it was in the best
interests of the Village to establish a First Time Homebuyers Assistance Program ("the Program"); and
WHEREAS, with the passage of Resolution No. 30-00, a First Time Homebuyer's Assistance Program
was established in the Village of Mount Prospect, as part of the 2005-2009 Consolidated Plan; and
WHEREAS, since the establishment of the Program, the Corporate Authorities of the Village of Mount
Prospect have determined that it is in the best interests of the Village and first time homebuyers to amend
the program.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE
VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
Section One: The Mayor and Board of Trustees do hereby authorize an amendment to the 2000
Homebuyer's Assistance Proposal to (1) eliminate the matching requirement for funds, (2) authorize the
Village to perform background checks on applicants, (3) require pre- and post-purchase counseling, (4)
limit the amount of acquisition assistance to 20%, and (5) establish a maximum purchase price for
properties acquired through the program, a copy of the proposed 2007 First Time Homebuyers
Assistance Program Guidelines is attached and made a part hereof as Exhibit "A".
Section Two: The Resolution shall be in full force and effect from and after its passage and approval in
the manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this day of April 2007.
Irvana K. Wilks
Mayor
M. Lisa Angell
Village Clerk
H:\PLAN\CDBG\HOME HB\amendres30-001 sttimehomebuyersprogramapril2007 .doc
EXHIBIT B
RESOLUTION DATED
A RESOLUTION ACCEPTING A GRANT FROM THE ILLINOIS HOUSING DEVELOPMENT
AUTHORITY FOR HOME BUYER ASSISTANCE PROGRAM
The undersigned, Secretary or Assistant Secretary of Village of Mount Prospect, Illinois, a
unit of local government ("Sponsor"), duly organized and existing under the laws of the State of
Illinois, does hereby certify that the following is a true and correct copy of the resolutions adopted by
the Board of Directors of the Sponsor dated and adopted in accordance with the
Sponsor's Articles ofIncorporation artd By-laws, and the laws of the State of Illinois:
"RESOLVED, that the Sponsor shall enter into a Grant Agreement ("Grant Agreement")
with the Illinois Housing Development Authority ("Authority"), as program administrator of the
HOME Investment Partnerships Program for the State of Illinois, whereby the Authority agrees to
make a grant ("Grant") to the Sponsor, which shall be used by the Sponsor to identify homebuyers
who will be eligible to receive from the Authority, forgivable loans to help finance the acquisition,
all in accordance with the terms and conditions set forth in the Grant Agreement.
FURTHER RESOLVED, that anyone or more of the Village President, or Secretary or
Assistant Secretary of the Sponsor, is hereby authorized and empowered to execute and deliver in the
name of or on behalf of the Sponsor the Grant Agreement and any and all amendments,
modifications and supplements thereto, and to execute and deliver such additional documents,
instruments and certificates as may be necessary or desirable for the Sponsor to perform its
obligations under the Grant Agreement.
FURTHER RESOLVED, that anyone or more of the Village President, or Secretary or
Assistant Secretary of the Sponsor, be and is hereby authorized and directed to take such additional
actions, to make further determinations, to pay such costs and to execute and deliver such additional
instruments (including any amendments, agreements or supplements) as he or she deems necessary
or appropriate to carry into effect the foregoing resolutions.
FURTHER RESOLVED, that the acts of the Sponsor and the Village President, or Secretary
or Assistant Secretary of the Sponsor in furtherance of the Grant Agreement, including those acts
taken prior to the date hereof, be, and the same hereby are, in all respects, ratified, confirmed and
approved. "
(Signature Page follows)
244966-1
April, 2007.
IN WITNESS WHEREOF, I have hereunder subscribed my name as of the 16th day of
Print Name:
Its: Secretary or Assistant Secretary
244966-1