Laserfiche WebLink
CITY COUNCIL <br />CITY OF COLTON <br />AGENDA REPORT <br />For the City Council Meeting of October 5, 1999 <br />TO: Honorable Mayor and Councilmember <br />APPROVAL: Henry Garcia, City Manager <br />FROM: Robb R. Steel, Redevelopment Director` <br />v <br />SUBJECT: Approval of a Resolution Approving an Agreement <br />by and between the City of Colton and the Riverside - <br />San Bernardino Housing and Finance Agency (RISFA), <br />a Joint Powers Authority. <br />DATE: September 28, 1999 <br />Background/Discussion <br />The Riverside -San Bernardino Housing and Finance Agency (RISFA), a Joint Powers <br />Authority (JPA), has asked the City of Colton to participate in their JPA. Participation in the <br />JPA will allow homebuyers to purchase a home within the City of Colton, while <br />utilizing funds made available through tax-exempt bonds that have been issued by RISFA. The <br />City is not liable for any indebtedness incurred by the RISFA. The program created as a result of <br />RISFA bonding is the Lease -Purchase Housing Program. <br />Lease -Purchase Housing Program <br />After signing a three-year lease, the homebuyer makes monthly payment to the program's <br />non-profit corporation, which holds title to the home. After three years, lease payments cease <br />to be paid to the non-profit corporation and are paid directly to the Mortgage Company. The <br />lease -to -own conversion takes place without an increase in monthly payments. All lease <br />payments would reflect the monthly payment under a traditional 30 -year conventional fixed <br />rate mortgage established at the time the lease -purchaser commits to the purchase of the home. <br />The homebuyer never pays down payment or closing costs. The homebuyer pays a 1% <br />program fee which is spread out among their three year lease and in exchange receives, in <br />effect, an outright grant of the down payment and closing costs (approximately 8% of the <br />purchase price of the house). <br />In order to participate in the program, homebuyers will be required to complete home ownership <br />education. During the first three years, a program participant must demonstrate the ability to <br />Item #20 <br />