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Officer AT Home (OATH) Initiative Program Copyright 2014 City of Dubuque Action Items # 4. ITEM TITLE: Officer AT Home (OATH) Initiative Program SUMMARY: City Manager recommending approval of the Officer AT Home (OATH) Initiative Program for Police Officers and Firefighters who own or purchase a single-family owner-occupied property located within the Downtown Urban Renewal District. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type ❑ OATH Program-MVM Memo City Manager Memo ❑ Memo Staff Memo ❑ Program Description Supporting Documentation ❑ Program Map Supporting Documentation THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Officer AT Home (OATH) Incentives Program DATE: June 25, 2015 Housing and Community Development Department Director Alvin Nash is recommending City Council approval of the Officer AT Home (OATH) Incentives Program. Police officers and firefighters who own or purchase a single family owner- occupied property located within the Downtown Urban Renewal District will be eligible. Statistics have shown that the level of crime decreases when an officer is living in the neighborhood. The OATH Incentives Program offers to police officers and firefighters incentives to purchase homes in the Downtown Urban Renewal District, which encompasses an area from 25th Street to Stafford Street to Bluff Street. Chief of Police Mark Dalsing and Fire Chief Rick Steines support the program and believe it will help in their recruitment efforts. I concur with the recommendation and respectfully request Mayor and City Council approval. Micliael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Alvin Nash, Housing & Community Development Department Director THE CDubuque � DUUB_'&'-_ FE ' I MI-AndcaCity IT► pP PP Masterpiece on the Mississippi 2007-2012-2013 TO: Michael C. Van Milligen, City Manager FROM: Alvin Nash, Housing & Community Development Director SUBJECT: Officer AT Home (OATH) Incentives Program DATE: June 24, 2015 Introduction The purpose of this memorandum is to establish an Officer AT Home (OATH) Incentives Program for sworn in police officers and firefighters. Background This is modeled after the National Officer At Home Program. The OATH Incentives Program is created in an attempt to improve security and safety in communities throughout the City. Statistics have shown that the level of crime decreases when an officer is living in the neighborhood. The OATH Incentives Program makes homeownership more affordable for officers. Discussion The Officer AT Home (OATH) Initiatives Program offers to police officers and firefighters the following incentives: HOMEOWNER PURCHASE LOANS $ Amount Interest % Term $5,000 0% 5-year forgivable loan $10,000 0% Deferred Payment (Due on Sale) HOMEOWNER REHABILITATION LOANS $ Amount Interest % Term $5,000 0% 5-year forgivable loan $10,000 0% Deferred Payment (Due on Sale) $10,000 0% 20 year term; $42/mo. Samples of Home Sales $115,000 3% down a ment = $3,450 3.9% interest on 1 s mort a e $354 PI $ 40,000 loan from City 64 Taxes (e) $ 75,000 mortgage from lender 65 Ins e 42 City Loan $525 mo. payment $105,000 3% down a ment = $3,150 3.9% interest on 1 s mort a e $307 PI $ 40.000 loan from City 64 Taxes e $ 65,000 mortgage from lender 65 Ins (e) 42 City Loan $478 mo. payment $105,000 (3% downpayment = $3,150) 3.9% interest on 1 s mortgage $236 PI $ 15,000 owner down a ment 64 Taxes e 40 000 loan from City 65 Ins e $ 50,000 mortgage from lender 42 City Loan $407 mo. payment Under the OATH program, any single family owner-occupied property located within the Downtown Urban Renewal District will be considered. The Downtown Urban Renewal District are areas considered good candidates for economic development and improvement. (See attached Program Guidelines and Map) A comparison of the different Rehabilitation Programs are listed below: • HOME BUYER PROGRAMS WASHINGTON NEIGHBORHOOD OATH PROGRAM 1ST HOMEBUYER 1ST HOMEBUYER Amount $5,000 $10,000 $5,000 $10,000 Interest 0% 0% 0% Term 5-yr forgivable Deferred Payment 8-year term 14-year term • REHABILITATION LOANS WASHINGTON OATH PROGRAM REHABILITATION NEIGHBORHOOD REHAB LOANS LOAN REHABILITATION LOAN Amount $5,000 $10,000 Up to $25,000 Up to $25,000 $10,000 Interest 0% 0% 0% Term 5-yr forgivable Less than 50% AMI >30% AMI Deferred Payment 0%for 3 yrs 0% for 40 year term / for remaining contract 20-year @ $42/mo term 31-50% AMI 1% for 40 year term 50-80% AMI 3%for contract term 51-80% AMI 20 for 40 year term Mark Dalsing, Police Chief and Rick Steines, Fire Chief, are in total support of this Program and feel that it would also help with recruiting outside officers. Recommendation I recommend that City Council approve and support the OATH Incentives Program. This Program is contingent of availability of funds. Officer AT Home (OATH) Incentives Program The Officer AT Home (OATH) Initiatives Program offers to police officers and firefighters the following incentives: HOMEOWNER PURCHASE LOANS $ Amount Interest % Term $5,000 0% 5-year forgivable loan $10,000 0% Deferred Payment Due on Sale HOMEOWNER REHABILITATION LOANS $ Amount Interest % Term $5,000 0% 5-year forgivable loan $10,000 0% Deferred Payment Due on Sale $10,000 0% 20 year term; $42/mo. Under the OATH program, any single family owner-occupied property located within the Downtown Urban Renewal District will be considered. The Downtown Urban Renewal District are areas considered good candidates for economic development and improvement. (See attached Map) Homes offered for sale in the program could have been vacant, run down or foreclosed. Following are the requirements that Officers (police officers and firefighters) must meet to use the program: • Officers must live in the property as their sole residence for at least five years after purchase. Officer must be a full-time, sworn officer who works for a city, county, state or Federal. In order to purchase a property, you should be pre-approved and have a letter of commitment for an approved loan. Once your offer is approved, you will have only 24 hours to provide the required down payment and begin your loan approval process. Get started before making your offer to insure a smooth, stress free, transaction. The OATH Incentives Program is created in an attempt to improve security and safety in communities throughout the City. Statistics have shown that the level of crime decreases when an officer is living in the neighborhood. The OATH Incentives Program makes homeownership more affordable for officers. Qualifying Properties Qualifying properties are properties that are single family properties located within the Urban Renewal District. Penalty for Failure to Meet Requirements Any Officer that does not meet the five-year residency requirement may be required to pay back the forgivable funds. St �2 32ND eBE z ?O F Spy��\�� � E 30tH ST �e A �NSENST Q A3.A�PQP � V d �- W28TH ST oN. ? �W �Ncr�• � JUST/N - = O m A 5T A W PAV S E16TH CIW KING st a yp. Gp�E 4, 4 4; 9 C z Alp GaOLJ�y! FFZC 2� KILGORE ST Q,� may O 4 c�'P.I-F- z m y E 21ST ST 'r a 1. O � E 20TH ST F KERPER CT aANGELLW 17TH ST � 2 � c HWy 6I I�720p'vR'hR0 W 16TH ST R "' N E 16TH ST W STHST 3 Z LORAS BLVD c a N w W 13TH ST E 13TH ST $ ROSE ST Z � R E 12TH ST E 12TH ST a e W 11TH ST 30 R E 11TH STOG,P UN/VERSITY N E 10TH ST °�%9 290P 4vE ? 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