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PROPOSED RESOLUTION
PROPOSAL FOR FUNDING - MARKET RATE DOWN PAYMENT ASSISTANCE PROGRAM
WHEREAS, the Board of Commissioners of Cook County (“the Board”) determined it to be advisable and in the best interests of the County, its residents, and its taxpayers that the County continue the promotion of economic development, affordable housing, and home ownership within the County; and
WHEREAS, the Board further determined it to be advisable and in the best interests of the County, its residents, and its taxpayers that the County initiate and administer a program through which qualified buyers of residences in the County might more easily obtain competitive fixed-rate 30-year mortgage loans coupled with assistance for down payments and closing costs, herein referred to as a Market Rate Down Payment Assistance Program (Market Rate DPA Program); and
WHEREAS, the Cook County Board of Commissioners via Resolution 16-1343, as amended, authorized the Market Rate DPA Program that has been in continuous operation, most recently amended via Resolution 24-2513 to create a direct homebuyer subsidy utilizing American Rescue Plan Act (ARPA) Funding; and
WHEREAS, the Board is further desirous that to administer the Market Rate DPA the Bureau of Economic Development’s Department of Planning and Development and the Bureau of Finance retain Stifel, Nicholas & Company Incorporated (Stifel, Inc.) and Club 720 as Joint Administrators of the Market Rate DPA Program, to administer the Market Rate DPA Program in accord with relevant federal, state, and local law, County policies, and established best practices, said administration to include assisting said Bureaus in the promulgation of Program policies and procedures, if any; satisfying requests for assistance, support, and information made by said Bureaus; packaging and circulating the loans into the secondary market; and taking such other action as is necessary, advisable, or incidental to the administration of a Market Rate DPA; and
WHEREAS, Stifel, Nicolaus & Company Incorporated (Stifel, Inc.) will be the County’s representative both marketing and underwriting the down payment assistance program to single family mortgage lenders and Club 720 marketing to homebuyers and providing support in attaining home ownership, including homebuying counseling and financial counseling, continuing a network of twenty-five lenders in the Cook County market, including the City of Chicago; and
WHEREAS, the Department of Planning and Development is recommending funding $8,579,599 in Corporate Funds (11000.1490.66514.580170) to fund Down Payment Assistance Funding direct to prospective homebuyers, as appropriated in the Fiscal Year 2025 Budget; and
WHEREAS, Funds will be used to directly support new homebuyers in Disproportionately Impacted Areas (DIA), HUD Qualified Census Tracts (QCT) and the general market with the latter supporting homebuyers with incomes less than 120% of Area Median Income. Buyers purchasing properties within the DIA and QCT will not have income limitations. All homebuyers must reside in the property as their primary residence; and
WHEREAS, Homeowners will have two primary benefit options that may be used unilaterally or in combination to maximize benefit to the homeowner; and
1. Using Down Payment Assistance to buy down the principal amount of their home mortgage
2. Using Down Payment funds to buy down the interest rate of the permanent mortgage
Down Payment Assistance awards will be evidenced by a subordinate mortgage on the property requiring buyer affordability provisions and primary residency through a five-year period. Subordinate mortgages may be partially satisfied or forgiven pro rata annually during the initial five-year period to allow immediate wealth accumulation and to not limit homebuyer mobility during the residency period; and
WHEREAS, Down Payment Assistance will be the least of five percent (5%) of home purchases or $25,000 to the extent it closes the homeownership gap of projected homeownership costs to 30% of Household Income; and
NOW, THEREFORE, BE IT RESOLVED, that the Cook County Board of Commissioners hereby approves the allocation of $8,579,599 in Corporate funds to support homebuyer down payment assistance and authorizes the Director of Planning and Development to further negotiate required evidentiary documents to extend the agreement with Stifel, Inc., and Club 720 to administer the down payment assistance program.
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